Google's Next Move - Video Game Ads?

Since AdWords was launched in 2001, Google expanded to image ads, video ads and print advertising, and has often been said to include radio and television. Although many think that television ads (ALA Spot Runner) could be the next major step for Google, may ignore the potentially larger opportunity: advertising in video games played.

Earlier this year Massive Incorporated, a video game advertising network, announced a landmark deal with Major League Baseball and 2K Sports to provide dynamic advertising in the popular video game Major League Baseball 2K6. In their press release, "massive network and technology allow MLB Advanced Media and 2K Sports titles to leverage dynamic advertising for good, fresh brand messaging in their games, mirroring, and rapidly expanding advertising opportunities in the field of live sports action. "

Why Should Google Care?

The Entertainment Software Association has U.S. sales of hardware and software for video games to 7.3 billion in 2004, a figure that rivals Hollywood Box Office Revenue. The in-game advertising for video games is not new to the gaming industry is booming - large companies have bought advertising static game for years. What is new is the expansion of online gaming in general. Once reserved only for PC gamers, console gamers have now discovered a new world of competition on a broadband connection.

In a recent interview with TechNewsWorld, EA John Schappert, who oversees the largest interactive entertainment studio in the world, was asked for in-game advertising: "By integrating the game ads are a growing company where 'we see is for advertisers and consumers looking for more. This is an additional source of income is still small, but growing. There is the possibility of scalability in this area with ads dynamically. E 'at an early stage [ in] How in-game advertising will become increasingly important. "

From Microsoft, Xbox and PS2, Sony, and continuing for the next generation of online gaming with the Xbox 360 from Microsoft, Nintendo Wii and Sony PS3, it has become a near certainty that almost all players can play while connected to a broadband connection. With this broadband connection is an opportunity for advertising that is hard to ignore.

History repeats itself?

The leak potential as Massive Incorporated is the fact that their advertising network still does not understand that large advertisers. Massive site does not provide specific information about purchasing advertising space, saying only that "advertisers blue-chip" can work with them, "veteran team for the sale" to start an account. I think it's fair to say that small businesses are not their target market. So while we implement the dynamic ads, those ads are still accessible to large enterprises. Anyone familiar with advertising on the Internet you can see the potential for history to repeat itself.

Way back in 1996, long before Overture (now Yahoo Search Marketing) and Google AdWords, a company called DoubleClick pioneered website advertising. Their downfall, however, was that they needed a formal sales contract, limiting their potential customer base of only large companies. Overture and AdWords, the advertiser has been easy for small and small site owner to participate in their ad network, opening most of their services to anyone anywhere. Several years later, one might think that Google is keeping a watchful eye on what's going on at Massive Incorporated. Massive may be the first to enter the market, but it is difficult to ignore the fact that the entrepreneur is excluded. Google may be the next Massive DoubleClick?

How Would Google Do It

There is no doubt that the best programmers in the world of Google is able to develop and improve technologies that Massive has done. It is also easy to imagine advertisers pay per thousand impressions (PPM) for their text ads or image to be shown in specific games, just like at specific sites. The hardest part for Google, though, is the distribution of such ads.

In contrast with the signing of web sites to display their ads on your site by copying code, Google would work with game programmers throughout the development process. This consumption could be much longer and have a significantly higher risk for Google. In the same way that Massive has signed a contract with 2K, Google would have to sign large contracts with game developers and work with them for several months to integrate their ads.

This implies that the main difference between what happened with DoubleClick and what could happen with video games is that you probably work for Google to distribute their ads across multiple channels (ie more games). Since each game is programmed differently, there is no equivalent in JavaScript game used in all AdSense ads. Each game will be adapted to the Google ad network individually. Difficult yes. Unable to Google: No way.

When Will They Do It?

In my opinion it is not a question of if, it is a matter of when. The potential revenue of the game is too big for Google to ignore. Oh, and if you are not yet convinced, consider this: Microsoft, one of Google's main competitors, also produces the Xbox 360. If Microsoft decided to integrate their adCenter, launched recently in Xbox games, it would really surprise anyone if Google countered by announcing a deal with Sony and Nintendo to integrate the dynamic in-game advertising to PS3 or Wii?