1/24 ITU EB22: Online Marketing In-Game Advertising Philippe Devantier Becker 18 November A18, IT University of Copenhagen

2/24  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 Agenda

3/24 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 bn USD estimated in 2010  Even ITU’s own Center for Computer Games Research has neglected this field so far

4/24 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

5/24 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

6/24 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

7/24 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

8/24 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)

9/24 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

10/24 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

11/24 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

12/24 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

13/24 Examples of in-game ads… (and now for some pictures!)

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20/24 Videos  Intel ads in “Battlefield 2142”: ◦  Job opportunities in the British Intelligence agency: ◦  Doritos advergame for Xbox 360: ◦  How not to do it (I hope this is a joke): ◦

21/24 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

22/24  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

23/24 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

24/24 Discussion  Questions?  Feedback?  Opinions?