Video games While traditional youth media are losing their appeal for their target audience, video games are positioning themselves as a new channel for advertising messages. It's a trend that's only hesitantly catching on in Switzerland. The curves are as swirly as they can get. Lara Croft may have become a bit more athletic, but her gravity-defying bosom is still an eye-catcher. Car manufacturer Jeep has been relying on this for some time now, firstly with product placements in the video game "Lara Croft - Tomb Raider: Legends", and secondly on its website. There, under the "Games" link, browser games such as "Lara Croft - Trail Raider" can be found. The novice starts with a Jeep Wrangler. If he passes the collection tour in the jungle, he is upgraded to a Commander model. At the end, the entire Jeep range is available for selection. "50000 times the games have been downloaded," Jeff Bell explained at the Electronic Entertainment Expo in Los Angeles in 2005. At the time, the marketing expert successfully helped DaimlerChrysler correct Jeep's lurching course. "Five hundred gamers eventually bought a car. I don't think that's a bad return on investment." The success brought more: Since June of this year, Bell has been applying his knowledge for Microsoft in the Global Marketing division of the Interactive Entertainment Business.
In the US and also in the UK, in-game advertising is currently the talk of the advertising industry, for a number of reasons:
- Conventional media such as print and TV have lost their appeal for the target group of males, ages 17 to 34.
- Video game graphics have never been as photorealistic as they are today.
- Connectivity through broadband Internet access is growing and with
them the community of online players.
Exciting Plot IntegrationsGuy Bendov of in-game advertising broker Double Fusion tells Advertising Week, "The community of online PC gamers is growing, but networked consoles are also increasing. While a mere 10 percent played online last generation, over 50 percent of Xbox 360 gamers are connected." Online connectivity is key for in-game advertisers if they want to take full advantage of current video game opportunities with dynamic advertising.
Of course, products that have been virtually reconstructed can also be placed in games in the same way as product placement in feature films, but this gives away part of the interactivity. Far more exciting are so-called plot integrations, in which the advertised object becomes part of the plot, such as the Sony Ericsson cell phone in the action game "Splinter Cell: Pandorra Tomorrow" or Apple's iPod in "Getting Up: Contents Under Pressure," which is in any case an image advertising game for the American fashion designer Marc Ecko, who produced the game together with Studio Atari and outfitted the heroes with his clothes.
To benefit from such opportunities and more, Microsoft snatched up Massive Incorporated, one of the three leading in-game advertising marketers, at the beginning of May this year. This move came as a surprise, because for many, an exclusive collaboration would have done the trick. Not so, Kevin Browne, general manager Xbox New Media, tells Advertising Week: "We weren't just interested in Massive's technology and services. We also had 100 open positions at MSN (Microsoft's Internet portal/provider service, editor's note). By buying Massive, we also acquired the expertise of 60 to 70 people, including visionaries in the industry."
This commitment had a similar effect as Microsoft's entry into the console market. Suddenly, the booming market also became interesting for non-gamers. With the acquisition of Massive, Microsoft has now, in a sense, given its blessing of respectability to in-game advertising, an observation also made by Guy Bendov of Double Fusion: "Since the purchase, big companies are increasingly getting on board. They now have a good feeling about it."
In Switzerland, however, this feeling is spreading only hesitantly. "We are once again in danger of missing the boat," says Martin Radelfinger of Adlink, which is the European partner of the third in-game advertising marketer IGA Worldwide in the field of dynamic in-game advertising. Reasons for the
He sees "ghettoization" on the one hand in the small market size, and on the other hand in the fact that Switzerland is not part of the EU: "In Germany, France and England, figures are available that provide information about expected sales and customer potential for games. These are largely lacking for Switzerland.
Delicate scattering lossesIn addition, there is a fundamental skepticism about new platforms due to a lack of empirical values. For people like Martin Radelfinger, this is also the biggest challenge: "With successful game series, publishers can make a sales forecast in the range of plus-minus 10 percent," explains the Managing Director of Adlink in Küsnacht. "We have no choice but to convert the figures from Germany to Switzerland by the usual factor of 10:1."
In addition to this basis, however, other performance values belong in a forecast: playing time, number of advertising impressions conveyed, the half-life of the respective title and the number of players per copy sold (multiple use). "In the case of dynamic advertising via an ad server, which places the ads on a designated placeholder at the given time, calculations are not a problem, since only the advertising impressions that have actually taken place are recorded and accounted for."
Static integration, which usually takes the form of product placement or plot integration in the purchased game, is far trickier in terms of wastage. Here, the choice of title requires more advance clarification, but with an entry budget starting at 40000 euros, in-game advertising turns out to be comparatively inexpensive: "With advertising in video games, there is the possibility of going very in-depth. That's why this route is also suitable for iconic products," says Radelfinger. Also on the positive side, the man with a background in media studies and cognitive psychology sees the course of sales conversations.
While eight years ago advertisers, customers and agencies couldn't imagine anything concrete about banner advertising on the Internet, the idea of placing a virtual billboard or integrating a Coke machine into a video game is much easier to grasp: "You just have to show people a game, then they can quickly imagine what it would look like with their advertising in this virtual world." As we all know, a game speaks more than a thousand words.
Marc Bodmer
www.massiveincorporated.com
www.doublefusion.com
www.iga-worldwide.com
www.adlink.ch