In-Game ads predicted to surpass $2 billion

In-game advertising will explode over the next five years according to a recent Parks Associates forecast. In 2006 US advertisers spent about $360 million on in-game ads; by 2012 forecasters expect that spend to grow to $2 billion.

by Kristina Knight

Still, advertisers may not be using in-game ads to their full potential. Instead they are investing more in other ad forms because the in-game market is fairly new. That could be a mistake.

Yuanzhe (Michael) Cai, director of broadband and gaming, Parks Associates said, “If executed correctly, game advertising can provide a win-win solution for advertisers, developers and publishers, console manufacturers, game portals, and gamers.”

In-game ads are expected to grow more than 84% by 2012. From $55 million in 2006, in game advertising is expected to reach more than $800 million by 2012. According to some research advertisers needn't be worried that gamers will react badly. Research suggests that gamers actually prefer in-game ads because they add a touch of reality to the game itself.

Investing in an in-game ad campaign, then, is a good investment for advertisers. However, marketers need to think outside the box. A standard online, video or television commercial won't fly in the gaming realm. Ads there need to be inventive, add a touch of the unique to the already unique world of the game.