industry news
In-Game Ads Predicted to Reach $US 650 Mil By 2012
Posted by Tori Floyd at 12:24 PM on March 5, 2008
According to the latest report by analyst group eMarketer, the in-game ad industry will grow to $US 650 million by 2012, more than doubling 2007's $US 295 million. eMarketer attributes the growth to the overall growth of the video game industry, with game launches overshadowing other big media events. Most recently, Halo 3 generated more in first day sales than the opening weekend of Spiderman 3 (the biggest opening weekend in history) and the first-day sales of Harry Potter and The Deathly Hallows (the final installment in the series).
But this shouldn't come as any surprise. In fact, this estimate is more conservative than in the past. Join me on a trip down memory lane for just a moment, back to the wonderful world of July 2007. Back then, the Yankee Group said that by 2011, in-game ad revenue could reach $US 971 million. So while in-game ads are on the rise, they may not be growing as quickly as originally thought!
eMarketer: U.S. In-Game Ads Market to More than Double to $US 650M by 2012 [GameDaily]

Comments (AU Comments · US Comments)
There are currently no AU comments for this post.
fuchikoma
Posted 5:33 AM 6/3/08
It would be interesting to make a spoofed ad server at home and instead of serving banners/posters that show up in the game environment, just serve pre-made textures that look like the surrounding walls etc. so the ads seem to vanish from the game...
fuchikoma
fawrh
Posted 5:33 AM 6/3/08
Ads are a great idea in games, as long as they are tasteful and not out of place. It would be a noble idea to see MMOs (although fantasy settings probably wouldn't work) use ads as a alternitive to a subscription fee.
fawrh
SmAuRt_GuY
Posted 5:33 AM 6/3/08
As long as they don't take over the game, I'm ok with it.
SmAuRt_GuY
bakedpigeon
Posted 5:33 AM 6/3/08
I think eMarketer forgot to factor one thing in. The would is going to end in 2012.
bakedpigeon
DaiMacculate
Posted 5:33 AM 6/3/08
@lordargent: Heh, I'm estimating of course. I thought about just saying over 100 (was thinking of Nascar-looking one) MPH, but 150 sounds impressive.
@Rebelphoenix83: Wow, so you hate better graphics in your newer games then?
This Wii owner laughed uproariously at the suggestion that I might be a graphics Whore. I do appreciate the fact that, directly compared to Revenge on my PS2 using the same display, Paradise looks much, much nicer, I'm sorry that I can't ignore that fact. I didn't buy it because of the graphics though, I bought it because I loved the idea of a "stageless" Burnout Game and I still do...or rather will again, once my poor 360 is fixed.
I'm getting to the point where losing my console for 3-5 weeks at a time every 4-6 months is less and less something I can just shrug off, personally. That was #3, be real curious to see if I get that serial number back or a new unit, which is really what would make the most sense for all parties at this point IMO. I'm sure MS thinks differently though...
DaiMacculate
lordargent
Posted 5:33 AM 6/3/08
DaiMacculate: plowing into vehicles bearing Corporate Branding at 150mph or faster...;)
How do you know how fast you're going? None of my have speedometers.
:P
lordargent
SSJPabs
Posted 5:33 AM 6/3/08
Properly implemented, real ads make the game world feel real. Imagine a half-legible Coke billboard in HL2 to drive home how the Combine crushed even the mighty megacorps.
SSJPabs
WillW
Posted 5:33 AM 6/3/08
Great!
WillW
PHILOSOPHER541
Posted 5:33 AM 6/3/08
I HOPE THEY ALL DIE OUT. I DON'T NEED SUBLIMINAL MESSAGES IN MY VIDEO GAMES THANK YOU.
PHILOSOPHER541
Rebelphoenix83
Posted 5:33 AM 6/3/08
@DaiMacculate: well I'm not enough of a graphics whore just to buy a game because it has "better graphics."
Rebelphoenix83
kman2686
Posted 5:33 AM 6/3/08
But when will that revenue begin to help the consumers see a price reduction in games?
kman2686
Neopolitian
Posted 5:33 AM 6/3/08
I don't think enough people are screaming 'I'm not paying 60 bucks for a game with ads in it!'
Ad supported games should be free and littered with shit for the cheap ass gamers to play.
Neopolitian
ban_hammer
Posted 5:33 AM 6/3/08
@_Ted_: And these games are usually $59.99!
ban_hammer
DaiMacculate
Posted 5:33 AM 6/3/08
@Rebelphoenix83: Umm, because one feature that I kind of liked in the previous burnout games is not that big a loss when compared with better graphics, IMO better cars, and virtually no load times. They're still there of course, and it does take a bit to load right at first, but yeah its awesome. I love the single open world, its like GTA if the Driving was actually really well done, instead of so-so. like it has been in the last 3 games. I really prefer it to the myriad "stages" of the previous games that basically amount to a handful of tracks/city scenes done at many different angles. Memorizing where the awesome jumps are in Paradise is really fun. Plus you can do Showtime crashes, they're not as cool as Crash mode but an acceptable substitute. Plus its not like my PS2 died, if I get the urge for Crash mode Burnout 3 or Revenge is just a couple clicks away ;)
So yeah, you're missing out man, I highly recommend the game. I've even heard its "better" on PS3, though I can't see it on my friends PS3; to be fair his TV is not as nice or on the same level HD as mine, I think his might do 720, mine does 1080, and his is an older projection model, versus my nicer DLP.
DaiMacculate
lumpy108
Posted 5:33 AM 6/3/08
i would love to sea a screenshot of sam fisher walking past a preperation h poster that would be da bomb!!!
lumpy108
_Ted_
Posted 5:33 AM 6/3/08
I hate in game ad's. Because even though I see so many of them I still have to shell out the 60 bucks for a game. To tell the truth after playing GH3 and seeing all those damn Axe ad's I stopped buying Axe. sure then can add SOME realism as long as their not plastered EVERY where. But they still piss me off to a degree and I know that there isn't going to be less of these ad's (that would just be stupid of a marketing team) but I as the person who has to see these ad's want something in return. Like a drop in the games price, shorter loading times, fewer delays just something!
_Ted_
PlayerX
Posted 5:33 AM 6/3/08
I know that it makes economic sense to use real faceplates for stuff like soda machines and such in games because it can generate income for the company publishing the game, but I prefer to see the funky names designers come up for stuff....
Like, wouldn't it be more appealing to walk up to a machine selling "Diet Dr. Shizz" or something? I dunno... I just feel like we lost an extra dimension of fun with in-game ads.
The only games I never really minded it in were the Gran Turismo games, where you get billboards and stuff for car-related products, but I am biased towards cars.
PlayerX
Strangelove
Posted 5:33 AM 6/3/08
Things like billboards and real soda machines I can take, if they fit the context of the game.
Strangelove
KommissarK
Posted 5:33 AM 6/3/08
All this talk reminds me back when I played The Matrix Online. Now there is a game with a whole lot of in game advertising. Some of it was actually funny (Microsoft using some fairly fitting text for their adds), while others were plain stupid/annoying. I mean, they had video billboard adds for Wendys, and those things were freakin loud.
Anyway, good to heard advertising hasn't gotten too out of hand. Maybe they will manage to slip it in subtly enough so that by 2013 we won't mind that we are having adds sent into our brains.
KommissarK
Nikral
Posted 5:33 AM 6/3/08
well wait.
one Halo 3 game = ~$50
one pass to Spiderman 3 = ~$10
one Harry Potter Book = ~$30
so really how is that even? I mean it would take 5x the amount of people who saw Spiderman to equal one purchase of Halo 3 so those comparisons don't really work :(
Even if they did put lots of advertising in games Im pretty sure I'd just tune it out like I do in movies!
Nikral
Narynan
Posted 5:33 AM 6/3/08
I am usually to busy playing the game to care what adds they throw in there. But if they actually interfere with the game, or draw my attention away from the game, you better bet I will be "Bitching & Boycotting"
Narynan
zdude255
Posted 5:33 AM 6/3/08
Advertising cares about the number of people, not the amount of sales. Halo 3 sold more in sales, but over three times as many people went to go see Spiderman 3 on opening day. Using gross sales figures like that is misleading and bad journalism.
zdude255
obeymydog
Posted 5:33 AM 6/3/08
MUST BUY DIET SPRITE ZERO
obeymydog
goldwings
Posted 5:33 AM 6/3/08
I never got why people hate in-game ads. I mean I often times never, ever notice them. So I never knew what the big deal was.
goldwings
Erwin
Posted 5:33 AM 6/3/08
@TheCleaningGuy: Yep. Now I always read it as 2112. It's that ingrained.
2012 is going to be a tough year for me.
Erwin
meandering_drivel
Posted 5:33 AM 6/3/08
@TheCleaningGuy: but you remembered both. it's like buying stocks, except that it's really your brain, and you get zero compensation!
meandering_drivel
TheCleaningGuy
Posted 5:33 AM 6/3/08
@Erwin:Rush Fan? 2112 was a great album.
(Sorry about the triple post)
TheCleaningGuy
Detre
Posted 5:33 AM 6/3/08
well in spiderman3 and Harry Potters defense they dont cost 60$.
Detre
TheCleaningGuy
Posted 5:33 AM 6/3/08
@TheCleaningGuy: Oh forgot about GH III.
Those damn Axe ads are EVERYWHERE.
Haven't purchased that either.
TheCleaningGuy
Truepatriot
Posted 5:33 AM 6/3/08
its funny that i actually only see ads when others point them out im usually to busy playing to pay attention to some shitty product,im looking at you axe.
Truepatriot
TheCleaningGuy
Posted 5:33 AM 6/3/08
To my knowlege, I own no games with in-game marketing except for Xenosaga episode 1 (an email telling you to buy "Ninja Assault") and Yakuza (Boss Coffee Ads).
I haven't purchased either product.
TheCleaningGuy
Erwin
Posted 5:33 AM 6/3/08
Ads are okay if they aren't ridiculous, Activision being the perfect example of this. No, I don't want to play an official Axe guitar or bass. No, I don't want to save Vegas if it's nothing but Axe billboards. No, I don't want to buy Axe dammit!
I would also like to see developers use this money to make their games better. Or, if a publisher can make plenty of money off ads in the latest blockbuster, why don't they use it to give smaller games a chance?
[Also, note to self: stop reading 2012 as 2112]
Erwin
meandering_drivel
Posted 5:33 AM 6/3/08
I suppose having 'Mountain Dew' branded all over master chief is better than having to purchase ammunition by the bullet for 300 microsoft points a pop...
but with my luck, it's likely both are going to occur.
meandering_drivel
Rebelphoenix83
Posted 5:33 AM 6/3/08
@DaiMacculate: How could you buy Burnout without crash mode?
Rebelphoenix83
ban_hammer
Posted 5:33 AM 6/3/08
in the middle of a battle against terrorists, you shoot a small bottle and end up seeing an Axe ad? only in Vegas
ban_hammer
DaiMacculate
Posted 5:33 AM 6/3/08
Excellent News. Some games work well with subtle ads, but I'm glad to see that the insane growth of brand names in our faces we all once feared has not really materialized. Its here and there, but for the most part its been limited to games that simulate the "Real World", so in that sense they're a bit more excusable, as they arguably add realism. I personally love it in Burnout: Paradise, not that I'm more or less likely to purchase from Diesel or Gilette because I could give a damn about that, but there is something really satisfying about plowing into vehicles bearing Corporate Branding at 150mph or faster...;)
DaiMacculate
Rebelphoenix83
Posted 5:33 AM 6/3/08
I think this is a very sad turn of events. Some ads might work in games, but this is not tv or real life for that matter.
Rebelphoenix83
Sandbox_Emperor
Posted 5:33 AM 6/3/08
maybe because Spiderman 3 sucked?
Sandbox_Emperor