Appendix W: Advertising in New Media • Advertisers are looking for new ways to reach 18- to 34-year-old males who are increasingly abandoning television (and TV commercials)) and spending p g more time playing video games. • Ads in computer games that are played over the internet. Video Games • Game developers concerned about advertisers trying to dictate how and when the ads appeared. http://www.nytimes.com/2005/04/11/technology/11game.html?ex= 1270872000&en=f51cb1a7d7e22135&ei=5090&partner=rssuserland 1 • Fear alienating fans for minimal ad revenue. – Of the $4 billion in game sales in 2004, only about $10 million came from advertsing. advertsing New opportunity: In-game ads New opportunity: In-game ads • In-game ads are the new tool for marketers, since television viewership declines (9.8 (9 8 hours/week) while time spent playing video games raises (12.5 hours/week). • $200 million expected to be spent this year on in-gaming advertisement. advertisement • More than $432 million by 2009. David Lipke, Big game hunters (…) No wonder marketers like Nike, Adidas and Under Armour are eager to tap into this new national past time, DNR, February 2007 Beth Snyder Bulik, Dynamic ads push video gaming to high score in ROI, Advertising Age, Ferbruary 2007 2 New opportunity: In-game ads • In-game advertising revenues will reach $732.5 million by 2010 (up from $164.7 $164 7 million last year). David Lipke, Big game hunters (…) No wonder marketers like Nike, Adidas and Under Armour are eager to tap into this new national past time, DNR, February 2007 ADIDAS In-game ads campaign • Adida’s logo present in virtual players’ players uniforms and throughout the stadium David Lipke, Big game hunters (…) No wonder marketers like Nike, Adidas and Under Armour are eager to tap into this new national past time, DNR, February 2007 ADIDAS In-game ads campaign • German sports shoe maker Adidas integrated g ads into Power Challenge, an online video soccer game played simultaneously on the Web. David Lipke, Big game hunters (…) No wonder marketers like Nike, Adidas and Under Armour are eager to tap into this new national past time, DNR, February 2007 Def jam by EA • In this EA game, the players have to build a music empire and dress their avatars David Lipke, Big game hunters (…) No wonder marketers like Nike, Adidas and Under Armour are eager to tap into this new national past time, DNR, February 2007 3 Def jam by EA • As players win, they earn money to buy the latest styles from Jordan sneakers,, Avirex jackets, Ecko shirts, Sean John jeans, etc. in a virtual store. David Lipke, Big game hunters (…) No wonder marketers like Nike, Adidas and Under Armour are eager to tap into this new national past time, DNR, February 2007 Def jam by EA • Companies like Double Fusion, Massive (Microsoft) and IGA Worldwide have created d partnerships hi with i h the h game industry to develop video game advertising networks. David Lipke, Big game hunters (…) No wonder marketers like Nike, Adidas and Under Armour are eager to tap into this new national past time, DNR, February 2007 Def jam by EA http://www.cuhkacs.org/~henryporter/Bo-Blog/up/def+jam+fight+for+ny_wall-1.jpg “We work hand-in-hand with the game developers to figure out where the best places are to put advertising. We insert our own code into those places places, and once a consumer is playing the game online, it starts to communicate with our server.” -- Alison Lange, marketing director at Massive, leading the industry. David Lipke, Big game hunters (…) No wonder marketers like Nike, Adidas and Under Armour are eager to tap into this new national past time, DNR, February 2007 4 Main brands with In-game ads • In-game ads developed also by Nike, Reebok, Under Armour, American Apparel and New Balance Procter & Gamble Co., Balance, Co Unilever, Coca-Cola Co., McDonald's Corp., Burger King Corp., Chrysler Group's Jeep, Dell, Nokia, etc. David Lipke, Big game hunters (…) No wonder marketers like Nike, Adidas and Under Armour are eager to tap into this new national past time, DNR, February 2007 5