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Google's Next Move - Video Game Ads?

Since AdWords was launched in 2001, affordable to larger businesses. Anyone
Google has expanded to image ads, video familiar with internet advertising can
ads, and print ads, and has frequently see the potential for history to repeat
been rumored to be entering radio and itself.
television. While many think that Way back in 1996, long before Overture
television ads (ala Spot Runner) could be (now Yahoo! Search Marketing) and Google
Google's next major move, they may be AdWords, a company called DoubleClick
neglecting a potentially larger pioneered website advertising. Their
opportunity: in-game video game downfall, however, was that they required
advertising. a formal sales contract, limiting their
Earlier this year Massive Incorporated, a potential client base to only large
video game advertising network, announced companies. Overture and AdWords made it
a landmark deal with Major League easy for the small advertiser and small
Baseball and 2K Sports to provide dynamic site owner to participate in their ad
advertising in the popular video game networks, essentially opening their
Major League Baseball 2K6. According to service to anyone on the web. Several
their press release, "Massive's Network years later, one would think that Google
and technology allow MLB Advanced Media is keeping a watchful eye on what's going
and 2K Sports titles to leverage dynamic on over at Massive Incorporated. Massive
advertising for ever-fresh brand may be the first to enter the market, but
messaging in their games, mirroring the it's hard to ignore the fact that the
rapidly changing and expanding small business owner remains shut out.
advertising opportunities in the live Could Google make Massive the next
action sports industry." DoubleClick?
Why Should Google Care? How Would Google Do It
The Entertainment Software Association There's no doubt that with the best
put U.S. sales of video game hardware and programmers in the world Google is
software at $7.3 billion back in 2004, a capable of developing and improving upon
figure that rivals Hollywood box office the technology that Massive has. It's
revenue. In-game video game advertising also not hard to imagine advertisers
is nothing new for the booming game paying per thousand impressions (PPM) for
industry - large companies have been their text or image ads to be shown in
buying static advertisements in games for specific games, much like they do now for
years. What is new is the expansion of specific sites. The tough part for
online gaming into the mainstream. Once Google, however, would be the
reserved for only PC Gamers, console distribution of those ads.
gamers have now discovered a whole new As opposed to signing up websites to
world of competition over a broadband display their ads by copying some code on
connection. to their site, Google would have to work
In a recent interview with TechNewsWorld, with game programmers throughout the
EA's John Schappert, who oversees the development process. This would be much
largest interactive game studio in the more time consuming and would be a much
world, was asked about in-game larger risk for Google. In the same way
advertising: "In-game ad integration is a that Massive signed the contract with 2K,
growing business where we see both Google would have to sign large contracts
advertisers and consumers looking for with game developers and work with them
more. It's an additional revenue stream for several months to integrate their
that is still small, but growing. There's ads.
the potential for scalability in this This enforces the fact that the main
area with dynamically-served ads. It's difference between what happened with
still in the early stages [in terms of] DoubleClick and what could happen with
how in-game ads will grow in video games is that it would probably be
significance." more work for Google to distribute their
Starting with Microsoft's Xbox and Sony's ads over multiple channels (i.e. more
PS2, and continuing into the next games). Since each game is programmed
generation of online gaming with differently, there is no game equivalent
Microsoft's Xbox 360, Nintendo's Wii, and to the JavaScript used in all AdSense
Sony's PS3, it has become a virtual ads. Every game would need to be
certainty that nearly all gamers will be tailored to Google's ad network
playing while connected to a broadband individually. Difficult: yes.
connection. With that broadband Impossible for Google: no way.
connection comes an advertising When Will They Do It?
opportunity that's hard to ignore. In my opinion it's not a matter of if,
Is History Repeating Itself? it's a matter of when. The potential
The potential flaw in what Massive revenue from the gaming industry is too
Incorporated does is that their ad big for Google to ignore. Oh, and if you
network still only includes the large still aren't convinced, consider this:
advertisers. Massive's website gives no Microsoft, one of Google's main
specific information regarding how to competitors, also produces the Xbox 360.
purchase advertising, only mentioning If Microsoft decided to integrate their
that "blue-chip" advertisers can work newly launched adCenter into Xbox games,
with their "veteran" sales team to start would it really surprise anyone if Google
an account. I think it's safe to say countered by announcing a deal with Sony
that small businesses aren't their target or Nintendo to integrate in-game dynamic
market. So while they are implementing advertising for the PS3 or the Wii?
dynamic ads, those ads are still only




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