Virtual advertising playground
Games: Video games are becoming a major medium for guidance and advertising. This was revealed at the Gamehotel conference.
Games: Video games are becoming a major medium for guidance and advertising. This was revealed at the Gamehotel conference.
Gaming is no longer a niche phenomenon. Computer and video games generate a lot of revenue worldwide. In the U.S., they already generate more revenue than movies. Swiss people also regularly immerse themselves in virtual worlds. One in five people in this country spends time playing console or PC games, according to a study by Publica Data.
If it’s clear that more and more people are playing video games, what does that mean for the advertising industry? After all, people who play more games watch less TV or read fewer newspapers. So: What can games achieve as a marketing and advertising medium? What opportunities do they open up for brand communication?
The speakers at the Gamehotel conference last Friday sought to answer these and similar questions. Gamehotel is an international series of events. The topic of advertising in games is no coincidence. «Video games have cultural, economic, and social significance,» says Bruno Beusch. The Bern native, who lives in Paris, is the founder and organizer of Gamehotel. Following events in Paris and California, this year’s conference took place in Zurich for the second time. Video games exist at the intersection of technology and creativity. «Zurich is a high-tech hub and is at the forefront when it comes to culture and lifestyle,» says Beusch, explaining his choice of location.
Computer and video games are a territory that has so far seen little advertising, even though games are significant to the advertising industry in many ways. For one thing, because of their demographic reach: gaming is now a national pastime. People play everywhere—across all age groups, income levels, and educational backgrounds. On the other hand, gaming is associated with a wide range of emotions. Joy when you beat your partner in a car race. Pride when you’ve solved a puzzle. Frustration when your character fails to clear a level. Exuberance when singing karaoke with friends. The emotional component is—at least in theory—the perfect foundation for placing brand messages within computer game worlds.
Controversial Banner Ads As simple as it sounds, the subject matter addressed by the emerging advertising discipline of «in-game advertising» is highly complex. As was discussed at the conference, game developers aim to open up games as a marketing and advertising medium. However, implementation is difficult, because the mechanisms of mass media cannot simply be transferred to virtual worlds. «Games follow their own rules,» says Bruno Beusch.
Virtually all experts advise against simply plastering virtual game worlds with banners. Achim Jenner of the advertising agency Jung von Matt/Limmat, in particular, is critical of banner advertising. The advertising professional sees weaknesses in this form of advertising because certain types of players—due to their playing style and behavior—simply don’t notice the ads. «We need new approaches. We mustn’t overload games with banner formats, as was done in the early days of the Internet,» says Jenner.
The managing director of Jung von Matt/Limmat’s Digital Media Unit warned the audience of further «bubble bursts.» He noted that companies are willing to invest in computer game worlds. In the case of Second Life, however, more and more brands are pulling out, according to Jenner. The reason, he said, was the media hype and the disillusionment of many users. Added to this is the fact that virtual worlds represent a legal gray area. «If everyone is allowed to do as they please, it can’t end well for advertising,» says Achim Jenner. The range of legal violations in Second Life extends from drug and arms trafficking to child pornography.
The speakers at the conference were largely divided on what form advertising in video games will take in the future. Given the complexity of the topic, the question of advertising in video games could—to put it dramatically—turn out to be a matter of life and death. In no other medium are users as sensitive as they are in video games, says Bruno Beusch.
According to some of the speakers, traditional advertising formats are causing long-term damage to the medium. That is why hopes are pinned on new game formats. Gamehotel organizer Bruno Beusch is convinced that familiar game worlds are being replaced by increasingly complex structures. The trend is toward more competition among players and «user-generated gaming.» This means that, in the future, users will create their own gaming environments.
Relevant Advertising Target Audience – Jung von Matt and the Typology of Gamers
For a large portion of the population, immersing themselves in virtual worlds has become part of everyday life. The average age of the majority of casual gamers is over 40. This is according to a study by Jung von Matt, video game publisher Electronic Arts, and the trade magazine GEE. The study resulted in a typology of gamers:
Recreational player
More than half of all gamers can be categorized as casual gamers. With an average age of 44, they are also the oldest group of video game players. Casual gamers are predominantly employed and play only occasionally. They are considered open-minded and receptive to in-game advertising. They play to relax or pass the time when other leisure activities, work, or family commitments allow. Popular games: sports and racing games.
Regular players
This type of gamer is around 30 years old. Ever since he played on the C64 and Atari 2600 as a child, he has remained a loyal gamer. Today, he plays less than he used to, since he doesn’t have as much time left after work and family. He has a positive attitude toward advertising. Video games have a firm place in the life of the casual gamer—for example, during game nights with friends. Favorite genres: retro games, action, and strategy.
Intensive care patient
Heavy gamers are also commonly referred to as «gamers.» They make up the youngest group among gamers—80 percent are under 30—and spend the most time in front of the screen. School, college, vocational training, and the absence of family obligations leave them with plenty of time to play. Favorite genres: all. Because of their heavy gaming habits, they aren’t receptive to in-game advertising.
Fantasy Player
He is a family man. 75 percent of role-players live in households with three or more people, where the net household income is in the low to middle range. Video games offer him the opportunity for self-fulfillment that he lacks in real life due to sociocultural constraints. At 6 percent, role-players are a minority among gamers. Popular genres: role-playing games, adventure games. Due to their behavior in games, this type of player either does not notice advertising or finds it disruptive. They are too preoccupied with creating their own world.
Puzzle Games
In terms of demographics, consumption, and leisure behavior, this group aligns with casual gamers. However, their motivation for playing is quite different: they aren’t looking for relaxation or distraction; they want to strategize, solve puzzles, and be challenged. Furthermore, at 38 years old, their average age is significantly lower. Popular genres: strategy, simulation, and skill-based games. For the strategic gamer, advertising messages are distracting because they are too engrossed in the game’s content.
Christian Lüscher
Gamehotel
Gamehotel was founded in 2003 by Bruno Beusch
It was founded in Paris and, one year later, was included as a European organizer in the program of the world’s largest game developers’ trade show, the Game Developers Conference in San Francisco, California. In 2006, Gamehotel made its first stop in Zurich. Gamehotel produces TV and radio shows, conferences, and studies on the significance and influence of video games. In March 2007, the Gamehotel Think Tank was launched. Together with partners from the business and media sectors, the think tank analyzes key trends in interactive entertainment. Due to the high level of interest from visitors, the event in Zurich will be expanded even further next year. (cl)
Gaming is no longer a niche phenomenon. Computer and video games generate a lot of revenue worldwide. In the U.S., they already generate more revenue than movies. Swiss people also regularly immerse themselves in virtual worlds. One in five people in this country spends time playing console or PC games, according to a study by Publica Data.
If it’s clear that more and more people are playing video games, what does that mean for the advertising industry? After all, people who play more games watch less TV or read fewer newspapers. So: What can games achieve as a marketing and advertising medium? What opportunities do they open up for brand communication?
The speakers at the Gamehotel conference last Friday sought to answer these and similar questions. Gamehotel is an international series of events. The topic of advertising in games is no coincidence. «Video games have cultural, economic, and social significance,» says Bruno Beusch. The Bern native, who lives in Paris, is the founder and organizer of Gamehotel. Following events in Paris and California, this year’s conference took place in Zurich for the second time. Video games exist at the intersection of technology and creativity. «Zurich is a high-tech hub and is at the forefront when it comes to culture and lifestyle,» says Beusch, explaining his choice of location.
Computer and video games are a territory that has so far seen little advertising, even though games are significant to the advertising industry in many ways. For one thing, because of their demographic reach: gaming is now a national pastime. People play everywhere—across all age groups, income levels, and educational backgrounds. On the other hand, gaming is associated with a wide range of emotions. Joy when you beat your partner in a car race. Pride when you’ve solved a puzzle. Frustration when your character fails to clear a level. Exuberance when singing karaoke with friends. The emotional component is—at least in theory—the perfect foundation for placing brand messages within computer game worlds.
Controversial Banner Ads As simple as it sounds, the subject matter addressed by the emerging advertising discipline of «in-game advertising» is highly complex. As was discussed at the conference, game developers aim to open up games as a marketing and advertising medium. However, implementation is difficult, because the mechanisms of mass media cannot simply be transferred to virtual worlds. «Games follow their own rules,» says Bruno Beusch.
Virtually all experts advise against simply plastering virtual game worlds with banners. Achim Jenner of the advertising agency Jung von Matt/Limmat, in particular, is critical of banner advertising. The advertising professional sees weaknesses in this form of advertising because certain types of players—due to their playing style and behavior—simply don’t notice the ads. «We need new approaches. We mustn’t overload games with banner formats, as was done in the early days of the Internet,» says Jenner.
The managing director of Jung von Matt/Limmat’s Digital Media Unit warned the audience of further «bubble bursts.» He noted that companies are willing to invest in computer game worlds. In the case of Second Life, however, more and more brands are pulling out, according to Jenner. The reason, he said, was the media hype and the disillusionment of many users. Added to this is the fact that virtual worlds represent a legal gray area. «If everyone is allowed to do as they please, it can’t end well for advertising,» says Achim Jenner. The range of legal violations in Second Life extends from drug and arms trafficking to child pornography.
The speakers at the conference were largely divided on what form advertising in video games will take in the future. Given the complexity of the topic, the question of advertising in video games could—to put it dramatically—turn out to be a matter of life and death. In no other medium are users as sensitive as they are in video games, says Bruno Beusch.
According to some of the speakers, traditional advertising formats are causing long-term damage to the medium. That is why hopes are pinned on new game formats. Gamehotel organizer Bruno Beusch is convinced that familiar game worlds are being replaced by increasingly complex structures. The trend is toward more competition among players and «user-generated gaming.» This means that, in the future, users will create their own gaming environments.
Relevant Advertising Target Audience – Jung von Matt and the Typology of Gamers
For a large portion of the population, immersing themselves in virtual worlds has become part of everyday life. The average age of the majority of casual gamers is over 40. This is according to a study by Jung von Matt, video game publisher Electronic Arts, and the trade magazine GEE. The study resulted in a typology of gamers:
Recreational player
More than half of all gamers can be categorized as casual gamers. With an average age of 44, they are also the oldest group of video game players. Casual gamers are predominantly employed and play only occasionally. They are considered open-minded and receptive to in-game advertising. They play to relax or pass the time when other leisure activities, work, or family commitments allow. Popular games: sports and racing games.
Regular players
This type of gamer is around 30 years old. Ever since he played on the C64 and Atari 2600 as a child, he has remained a loyal gamer. Today, he plays less than he used to, since he doesn’t have as much time left after work and family. He has a positive attitude toward advertising. Video games have a firm place in the life of the casual gamer—for example, during game nights with friends. Favorite genres: retro games, action, and strategy.
Intensive care patient
Heavy gamers are also commonly referred to as «gamers.» They make up the youngest group among gamers—80 percent are under 30—and spend the most time in front of the screen. School, college, vocational training, and the absence of family obligations leave them with plenty of time to play. Favorite genres: all. Because of their heavy gaming habits, they aren’t receptive to in-game advertising.
Fantasy Player
He is a family man. 75 percent of role-players live in households with three or more people, where the net household income is in the low to middle range. Video games offer him the opportunity for self-fulfillment that he lacks in real life due to sociocultural constraints. At 6 percent, role-players are a minority among gamers. Popular genres: role-playing games, adventure games. Due to their behavior in games, this type of player either does not notice advertising or finds it disruptive. They are too preoccupied with creating their own world.
Puzzle Games
In terms of demographics, consumption, and leisure behavior, this group aligns with casual gamers. However, their motivation for playing is quite different: they aren’t looking for relaxation or distraction; they want to strategize, solve puzzles, and be challenged. Furthermore, at 38 years old, their average age is significantly lower. Popular genres: strategy, simulation, and skill-based games. For the strategic gamer, advertising messages are distracting because they are too engrossed in the game’s content.
Christian Lüscher
Gamehotel
Gamehotel was founded in 2003 by Bruno Beusch
It was founded in Paris and, one year later, was included as a European organizer in the program of the world’s largest game developers’ trade show, the Game Developers Conference in San Francisco, California. In 2006, Gamehotel made its first stop in Zurich. Gamehotel produces TV and radio shows, conferences, and studies on the significance and influence of video games. In March 2007, the Gamehotel Think Tank was launched. Together with partners from the business and media sectors, the think tank analyzes key trends in interactive entertainment. Due to the high level of interest from visitors, the event in Zurich will be expanded even further next year. (cl)
