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BizReport : Research : March 26, 2007
Should marketers harness MMOGs?
Video games aren't just for kids any longer, especially online games. According to some research, the massively multi-player online game (MMOG) World of Warcraft has around 8.5 million global players - and those players aren't children - willing to pay the $15/month playing fee.
According to Screen Digest, MMOG player revenues jumped to $576 million in North America in 2006 and to $299 million in Europe. Subscription services are responsible for more than 85% of gaming revenue, meaning that virtual sales and in-game ad revenue have only about 15% of the revenue pie.
Sounds like a market ripe for marketers, doesn't it?
Actually, online gaming is wide open for marketers, mostly because many online advertisers haven't figured out how to harness the power of MMOGs.
eMarketer senior analyst Paul Verna said, "In general, MMOGs do not lend themselves as readily to in-game display advertising or product placements as many console games do. On the other hand, the fact that MMOG players are, by definition, online makes them attractive to marketers looking to expose their brands to a connected audience."
The key is to place the ads so that users don't feel inundated by advertising. According to IGA Worldwide, an in-game advertising platform provider, up to 70% of gamers feel that in-game ads add to the reality of games. However, other studies have found that if there are too many ads, users will stop using the game, platform or device.
Tags: in-game advertising, MMOGs, online games
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