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Tuesday, 25. July 2006

Massive Drives Interactive Ads

Microsoft’s in-game ad specialist helps Toyota reach gamers.

Moving to grab a bigger part of the in-game ad market, Microsoft’s Massive unit introduced its latest offering Monday—interactive ads.

The majority of in-game advertisements have, until this point, mirrored static real-world approaches like billboards, vending machines, or even product placement.

Interactive ads are the latest move by advertisers interested in finding ways to make a stronger connection with target audiences. Video game players are rapidly becoming a lucrative market.

The first advertiser to use the new interactive ad is automotive giant Toyota, whose 2007 Yaris sedan will be featured in the massively multiplayer game Anarchy Online, published by Funcom.

According to Massive spokesperson Amy Janzen, gamers can click on billboards featuring the Yaris. As they do so, the ads reveal more information about the car.

The move is the latest by Massive, acquired in May by Microsoft. Terms of the deal were not disclosed, but The Wall Street Journal estimated the value at $200 million to $400 million. The company currently boasts an in-game ad network including 37 game publishers and more than 100 titles (see Microsoft’s Massive Purchase).

Interest in the in-game advertising space shows no sign of slowing down. According to Yankee Group, in 2005 advertisers spent $56 million placing ads in video games. That number is expected to hit $732 million by 2010.

But even so, in-game advertising will remain a small fraction of the total amount spent on advertising, which in 2005 was a mammoth $378 billion, according to PricewaterhouseCoopers.

Source link: redherring.com...

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