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