ITU EB22: Online Marketing In-Game Advertising Philippe Devantier Becker ( pdbe@itu.dk )

1. ITU EB22: Online Marketing In-Game Advertising Philippe Devantier Becker (pdbe@itu.dk) 18 November 2009 3A18, IT University of Copenhagen

2. Agenda Why are video games interesting as an advertising medium? Theoretical perspectives on in-game ads Real-world examples of in-game advertising Key learnings: Do’s & don’ts of in-game advertising

3. Motivation Advertisers constantly seek new ways of reaching customers Novelties grow old; banner blindness… Video game market is worth more than the film industry Sales of 11.7 bn USD in 2008 (up 23% from 2007) In-game ads are on the rise Yearly expenditure of 0.9-1.8 bn USD estimated in 2010 Even ITU’s own Center for Computer Games Research has neglected this field so far 

4. Games as an advertising venue Games are inherently interactive Provides a greater sense of “telepresence” Gaming is an exclusive, foreground activity You don’t multitask while playing Higher level of attention and concentration Demographical aspect: who plays games? Young males, age 18-34, high disposable income spent on entertainment

5. Games as an advertising venue People have needs When playing games, they expect entertainment Hierarchy of effects Cognition  affect  action Positive affect can be created Let users interact with your brand If they are enjoying themselves, this may reflect on the brand too

6. Attitudes towards in-game ads Gamers often participate in vocal on-line communities On-line games Discussion forums Amplifies both positive and negative opinions Gamers mostly accept ads if… They complement gameplay Make sense in the game Add realism

7. Attitudes towards in-game ads How to please gamers who hate ads? Use the developers’ increased revenue to… Lower game prices Create more creative games Win-win-win situation: Game developers gain new revenue streams Marketers reach desirable consumers Game-players save money

8. Games as an advertising venue What in-game ads can do: User involvement Positive affect Targeted ads for “people like me” What in-game ads cannot do: Trigger immediate action (disruptive to gameplay)

9. Types of in-game ads Real-world analogues Comparable to banner ads – e.g. billboards in-game Reflect phenomena from the real world Often add realism Product placement Just like in movies, TV etc. Digital versions of products or references to them

10. Types of in-game ads Cross-promotion Hybrid advertising campaigns Coupon rebates, in-game treasure hunts etc. Advergames Stand-alone games which prominently feature a specific brand Often given out for free

11. Types of in-game ads Incidental advertising Advertising not the primary goal Often implemented to add realism E.g. stadium billboards, player names etc. in sports games Explicit advertising Advertising is the primary goal E.g. billboards, posters etc. in the game world

12. How are ads placed in games? Static advertisements Hard-coded into the game during development Difficult to track statistics More expensive Dynamically served Just like banner ad networks on the Internet Trackable & targetable Requires Internet connectivity

13. Examples of in-game ads…(and now for some pictures!)

20. Videos Intel ads in “Battlefield 2142”: http://www.youtube.com/watch?v=Kzoq441Ul6E Job opportunities in the British Intelligence agency: http://www.youtube.com/watch?v=9Qqzv9avyuk Doritos advergame for Xbox 360: http://www.youtube.com/watch?v=ziWj29s3cbQ How not to do it (I hope this is a joke): http://www.youtube.com/watch?v=9TqNiDcAzPg

21. Key learnings about in-game ads Must be in-context Advertisers must stay in-character Ads must be creative and must not “stick out” in the game world Must fit well with gameplay Enhance the player’s experience Support the storyline if possible

22. Should not require much cognitive effort Gamers’ attention is dedicated to completing goals and following a storyline Trade-off between ad visibility and seamless integration Real vs. fake/spoof brands? “Grand Theft Auto” games have fake brands for humouristic effect Must never intrude inappropriately! Leave some control up to the gamer – never “hijack” their game Key learnings about in-game ads

23. Key learnings about in-game ads What if you obey these rules? Potential for better brand awareness & recall What if you break them? Risk of negative impact on your brand! Greatest challenges: Getting users involved without intruding Difficult to generate immediate action

24. Discussion Questions? Feedback? Opinions?