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