In-game ads link to the real world

Even a virtual soldier gets hungry sometimes. That's why one new firm is helping Subway, the sandwich chain, embed advertisements for its $2.49 daily specials in the video game Counter Strike. The real ads - still in test mode - appear on signs an alert gamer encounters while patrolling a virtual city.

And they appear to deliver. The company, Engage In-Game Advertising, surveyed online players recently after they had encountered the ads and recorded 94 percent recall. That's a "phenomenal" result compared with other media, says David Smith, vice president of business development for Engage in San Francisco. Subway's sales numbers also spiked in the test market.

Product placement meant to foster brand affinity has been commonplace in video games for several years. The practice is widely embraced by gamers, who prize realism - a FedEx delivery truck as opposed to a generic one, for example, in a street-racing game.

But "this is more," says Mr. Smith. "This is actually immersing traditional advertising, like billboards, into the games." The ads are local-market specific, and can be updated by means of an Internet "patch."

The move is the latest step in marketers' ongoing bid to capitalize on the rising number of PC- and console-based games that include, if not require, an online component. It has some watchdogs worried that more ads will pitch to younger-than-intended gamers.

Though many games are targeted to older teens, members of the age 12-to-17 set are most likely to play, according to one 2004 study.

"In-game advertising is here to stay, and will increase as more games and platforms hook up to the Internet," says Jeff Greenfield, executive vice president of 1st Approach, a marketing firm in Dover, N.H. "Gamers love the reality, and brands are excited about reaching their core demographic." It's a willing audience.

"This new generation of consumers does not consider its experiences 'authentic' unless advertising is involved," says Mario Almonte, a vice president at Herman Associates, a public relations firm in New York.

Soon, new gamers might not recognize ad-free games.

In fall 2004, two companies, inGamePartners and Massive, began experimenting with enhanced versions of product placement, including multiplayer online games that could be played free if a gamer agreed to view ads.

Then, early last year, Sony Online Entertainment formed an alliance with Pizza Hut centered on the fantasy role-playing game Everquest. A player can type "pizza" to open a browser window and order home delivery.

Today, one in-game advertising insider speaks excitedly about games in which a 3-D city might resemble New York's Times Square, ablaze with ads. Already in the works: in-game ads that replicate broadcast advertising formats. For example, a car in a video game can have a radio that streams live-audio ad messages, says Justin Townsend, chief executive officer of IGA Partners Europe, a leading global player in in-game advertising.

As for in-game television ads: "That's very close on the horizon," says Mr. Townsend. "Our next software release will actually allow us to place TV spots inside games."

Page: 1 | 2