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Google's Next Move - Video Game Ads?

Since AdWords was launched in 2001,businesses. Anyone familiar with
Google has expanded to image ads, videointernet advertising can see the
ads, and print ads, and has frequentlypotential for history to repeat itself.
been rumored to be entering radio andWay back in 1996, long before Overture
television. While many think that(now Yahoo! Search Marketing) and Google
television ads (ala Spot Runner) couldAdWords, a company called DoubleClick
be Google's next major move, they may bepioneered website advertising. Their
neglecting a potentially largerdownfall, however, was that they
opportunity: in-game video gamerequired a formal sales contract,
advertising.limiting their potential client base to
Earlier this year Massive Incorporated,only large companies. Overture and
a video game advertising network,AdWords made it easy for the small
announced a landmark deal with Majoradvertiser and small site owner to
League Baseball and 2K Sports to provideparticipate in their ad networks,
dynamic advertising in the popular videoessentially opening their service to
game Major League Baseball 2K6.anyone on the web. Several years later,
According to their press release,one would think that Google is keeping a
"Massive's Network and technology allowwatchful eye on what's going on over at
MLB Advanced Media and 2K Sports titlesMassive Incorporated. Massive may be
to leverage dynamic advertising forthe first to enter the market, but it's
ever-fresh brand messaging in theirhard to ignore the fact that the small
games, mirroring the rapidly changingbusiness owner remains shut out. Could
and expanding advertising opportunitiesGoogle make Massive the next
in the live action sports industry."DoubleClick?
Why Should Google Care?How Would Google Do It
The Entertainment Software AssociationThere's no doubt that with the best
put U.S. sales of video game hardwareprogrammers in the world Google is
and software at $7.3 billion back incapable of developing and improving upon
2004, a figure that rivals Hollywood boxthe technology that Massive has. It's
office revenue. In-game video gamealso not hard to imagine advertisers
advertising is nothing new for thepaying per thousand impressions (PPM)
booming game industry - large companiesfor their text or image ads to be shown
have been buying static advertisementsin specific games, much like they do now
in games for years. What is new is thefor specific sites. The tough part for
expansion of online gaming into theGoogle, however, would be the
mainstream. Once reserved for only PCdistribution of those ads.
Gamers, console gamers have nowAs opposed to signing up websites to
discovered a whole new world ofdisplay their ads by copying some code
competition over a broadband connection.on to their site, Google would have to
In a recent interview withwork with game programmers throughout
TechNewsWorld, EA's John Schappert, whothe development process. This would be
oversees the largest interactive gamemuch more time consuming and would be a
studio in the world, was asked aboutmuch larger risk for Google. In the
in-game advertising: "In-game adsame way that Massive signed the
integration is a growing business wherecontract with 2K, Google would have to
we see both advertisers and consumerssign large contracts with game
looking for more. It's an additionaldevelopers and work with them for
revenue stream that is still small, butseveral months to integrate their ads.
growing. There's the potential forThis enforces the fact that the main
scalability in this area withdifference between what happened with
dynamically-served ads. It's still inDoubleClick and what could happen with
the early stages [in terms of] howvideo games is that it would probably be
in-game ads will grow in significance."more work for Google to distribute their
Starting with Microsoft's Xbox andads over multiple channels (i.e. more
Sony's PS2, and continuing into the nextgames). Since each game is programmed
generation of online gaming withdifferently, there is no game equivalent
Microsoft's Xbox 360, Nintendo's Wii,to the JavaScript used in all AdSense
and Sony's PS3, it has become a virtualads. Every game would need to be
certainty that nearly all gamers will betailored to Google's ad network
playing while connected to a broadbandindividually. Difficult: yes.
connection. With that broadbandImpossible for Google: no way.
connection comes an advertisingWhen 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 Massiverevenue from the gaming industry is too
Incorporated does is that their adbig for Google to ignore. Oh, and if
network still only includes the largeyou still aren't convinced, consider
advertisers. Massive's website gives nothis: Microsoft, one of Google's main
specific information regarding how tocompetitors, also produces the Xbox 360.
purchase advertising, only mentioningIf Microsoft decided to integrate their
that "blue-chip" advertisers can worknewly launched adCenter into Xbox games,
with their "veteran" sales team to startwould it really surprise anyone if
an account. I think it's safe to sayGoogle countered by announcing a deal
that small businesses aren't theirwith Sony or Nintendo to integrate
target market. So while they arein-game dynamic advertising for the PS3
implementing dynamic ads, those ads areor the Wii?
still only affordable to larger



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