PC In-Game Advertising Poised to Grow

According to videogame research firm Parks Associates, PC videogame in-game advertising will explode from $80 million in revenue last year to $400 million by 2009. Parks Associates' market insights are based on "Electronic Gaming in the Digital Home," an online survey of more than 2,000 Internet gamers who have Internet access and play games at least one hour per month on a console, portable console or PC.

JVideogames have become as much a part of the entertainment culture in the U.S. as movies and television, but publishers haven't capitalized on advertising opportunities to the extent of other mediums. In 2005, U.S. Internet gamer households received about $0.10 worth of advertisement-supported gaming content on a monthly basis, compared to $50 worth of TV content.  Most in-game ads exist in the automotive, food and beverage, apparel and lifestyle industries - advertising aimed at the so-called core gamers, males 18-34. 

"In-game advertising, currently in its infancy, is poised to grow," Michael Cai, director of broadband and gaming said.  "Games are now an important form of family entertainment.  Advertisers will soon realize they can reach the whole family using this medium.  More and more adults play video games with their children and teens are even playing games with their parents. In addition, the 35-54 female gamers, who spend tens of hours playing casual games every month, are undermonetized."

According to the survey, males 18 to 34 years old are more open to seeing advertising than other age groups. Nearly one-third (29 percent) say they would not mind seeing ads in games as long as it helps enhance game play, compared to only 19 percent among female gamers ages 35 to 54. These percentages change if there's a prize available, as 38 percent of males 18 to 34 and 35 percent among of females 35 to 54 are fine with in-game ads.

Men and women also differ about what is the least intrusive approach to in-game advertising. Almost half of men 18-34 (49 percent) prefer product placement over pre-game ads (22 percent) and in-game bulletin boards (18 percent).  Women 35-54 prefer pre-game ads (42 percent) by a slim margin over product placement (36 percent) and between-level ad placement (13 percent).

In addition, gamers revealed through the survey that they expect a discount on game prices in exchange for seeing ads and the expected discount ranged from 31 percent for gamers ages 13-17 to 58 percent for women 55 and older.

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