Posts Tagged ‘IGA’

Earn Facebook Credits by watching in-game video via Sharethrough

Monday, May 9th, 2011

Announced late last week, social video advertising firm Sharethrough has recently engaged in a Facebook Credits program that will allow gamers to earn Facebook Credits for watching sponsored, branded videos within their favorite casual game.  This new offering is part of a much larger test program, investigating ways for Facebook users to earn Credits, which may then in turn be used to purchase premium goods and content within social games and applications.

According to Sharethrough, the new program will see an integration of branded video content directly within titles on Facebook.  Those that choose to click-click and watch one of the aforementioned videos will receive a pre-determined amount of Facebook Credits for their time.  Likewise, Sharethrough points to the direct integration of brand video as a key element to social video advertising, a factor that ultimately drives higher levels of user engagement, as well as the sharing of this brand video content.

“Sharethrough exists to help brands succeed with content, not ads. This program is a huge validation of that vision, as it will create premium opportunities for brand video content to be seen and shared,” said Dan Greenberg, co-founder and CEO of Sharethrough in a statement. “We are thrilled to see Facebook provide game publishers with a powerful new way to monetize their games via Facebook Credits and for the lift that this will bring to the social video advertising industry.”

Up and running since 2008, Sharethrough has already demonstrated the power of in-game social video via top brands including Sony, Xbox, Victoria’s Secret, Nestle, and LEGO.  Their unique offering has been proven to deliver significant increases in overall brand metrics.  One of Sharethrough’s most recent campaigns netted a 108 percent increase in brand awareness, according to metrics firm Vizu.  Building on the power and spread of Facebook, Sharethrough reports that sharing rates for Facebook games are off the charts, some 270 percent higher than in-game advertising on other platforms.

New found monetizer or recycling of a dead horse?  Time will be the judge, but, “Those who do not know history’s mistakes are doomed to repeat them.”  Or not.

 

Microsoft officially pulls the plug on in-game advertising unit Massive

Thursday, October 21st, 2010

Officially announced in New York yesterday, Microsoft has decided to shutter it’s in-game advertising unit, Massive. According to Microsoft, the technologies developed for/at Massive will be redeployed to their first party ad business, with an initial focus targeted at gaming. Redmond will wind down Massive’s operations, with the brand disappearing by years’ end.

massive_incThe future of the now closed company will eventually expand it’s offerings and technology to other Microsoft opportunities, but the decision comes in the wake of Microsoft’s decision to work closely with the Interactive Entertainment Business (IEB) and continue developing and expanding the technology employed under the Massive banner. This development will seek to meet the needs of first-party gaming advertisers on Microsoft properties such as Xbox LIVE and MSN Games.

The news of Massive’s impending sunset arrived at the beginning of this month, with Adweek breaking an exclusive reporting the news, with sources coming from inside the company. According to author Mike Shields, Massive general manager J.J. Richards had already started looking for a new job, and that the reassignment of Massive employees had already begun.

According to Shelds’ sources, it’s rumored that Microsoft had been shopping Massive around to potential buyers, least of which included competing in-game advertising firm Double Fusion. Microsoft had been seeking a high six, low seven figure deal – a deal Double Fusion obviously passed on. To put this figure into perspective, when Microsoft acquired the ad agency in 2006, they paid anywhere between $200 – $400 million according to estimates.

Noted above, Microsoft already has an Interactive Entertainment Business unit, and while Massive held it’s own niche specialty, at the end of the day, it appears as though Microsoft was unnecessarily duplicating it’s efforts. Meaning, in 2006 when they purchased Massive, the topic and industry were red hot, with then Massive CEO Mitch Davis prediction that the in-game advertising industry would be a $2 billion market by 2010, a figure that’s never been realized. The rise in popularity with both gamers and advertisers of central “Hubs” such as Xbox LIVE for Microsoft and Home for Sony have contributed to Massive’s demise. Add to this the fact that via Xbox LIVE, Microsoft can keep the entire advertising dollars pie, while via Massive, they’re contractually obligated to share some of this pie with advertisers, the decision to close down shop at Massive was only a matter of time.

While it’s sad to see any firm close it’s doors, it should be interesting to see what the now re-deployed Massive team can do for Microsoft’s Interactive Entertainment Business. Surely, years worth of know-how and experience are sure to trickle their way into new Microsoft offerings.

 

Microsoft lines up top advertisers for Kinect launch

Tuesday, September 28th, 2010

Announced at this week’s Advertising Week 2010, Microsoft has lined up key advertisers for the upcoming November 4th launch of their new motion control system for Xbox 360.

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As Microsoft hopes to usher in a new way of play, advertisers are already showing interest in how their ads can be interacted with. Taking advantage of Kinect’s unique response to body movements, Chevrolet, Sprint, and T-Mobile USA will launch respective ad campaigns across the Kinect console network, “Kinect Joy Ride,” “Kinect Adventures,” and “Kinect Sports.”

All ad campaigns are slated for a November 4th launch; let’s take a deeper look:

  • Chevrolet. This was the first campaign that was announced for Kinect, back in June, and places auto maker Chevrolet in a prime position to allow customers the opportunity to test drive Chevrolet vehicles from the comfort of their own home. The title will open with users driving Chevy’s new Volt car, but users can unlock additional cars such as the Cruze, Camaro, and legendary Corvette by watching video advertisements either on Xbox LIVE or the Web. An additional campaign is slated for the first of the year where Chevrolet will feature the same vehicles in the Kinect Hub.
  • Sprint. US telecom provider Sprint will launch “Kinect Adventures,” with a matching retail experience features on Xbox LIVE, as well as a “Kinect Adventures,” contest whereby players will have the opportunity to have their pictures features on Xbox LIVE. Those attending the NY Comic Con (October 8-10) will have a first crack at “Kinect Advetures,” as the campaign will be live at the Sprint booth suring the convention.
  • T-Mobile. Focused on sports, T-Mobile enters the Kinect ring with fixed product placements throughout the motion based games including volleyball net logo placements, custom bowling balls, and foam fingers in the virtual stands. In addition to the product placement, T-Mobile is going the extra mile and sponsoring a contest whereby players can view video content and partake in the first launch weekend “Play and Win” contest with prizes including Family Gold memberships (a $99.99 retail value).

“With Kinect for Xbox 360, we are removing the last barrier to interactive television — the controller,” said Mark Kroese, general manager of the Interactive Entertainment Advertising Business Group at Microsoft. “We have seen tremendous momentum from the advertising community, including big campaigns from Chevrolet, Sprint and T-Mobile. These visionary marketers are leading the entertainment revolution with ground-breaking campaigns that are highly engaging.”

 

EA: in game ads raise real world sales

Monday, September 20th, 2010

EA has recently announced the results of a study conducted by The Nielsen Company which demonstrates the effectiveness of in-game advertising. More specifically, the study illustrates just how effective in game ads can be at raising real world sales. Commissioned by EA on behalf of Gatorade, an in game advertising client, the study found that households that were exposed to in-game adverts of Gatorade increased their spending on said product by 24%, or an ROI of $3.11.

285240-ea_sports_logo_largeAnd this isn’t pre/post roll ads were talking about here. Gatorade’s ads ran as arena signs, player’s water bottles, score updates and other call outs (verbal) – actions that only mirror a real-world sporting event. The Nielsen study targeted NHL ’09 and’10, NBA Live ’07, ’08. ’09, and NBA Street Homecourt, all EA titles.

“Video games are a deeply engaging consumer experience,” added Gerardo Guzman, Director, Media Product Leadership for The Nielsen Company. “Bringing our industry accepted ad effectiveness understanding to video games is another way to help marketers understand how consumers respond to advertising across different environments. This should help optimize the impact of and derive a return on media investments. In this case the story is simple — dollars put into video game product placement result in more retail dollars.”

100,000 households were surveyed, accessed by Nielsen’s US Homescan panel. The Homescan panel represents the average US population, and this study included homes that scanned video game UPC barcodes. These barcodes were then in turn cross references with a database of over 14,000 video game titles, thus ensuring accuracy. Nielsen then compared this data with homes that purchased on of the selected titles both before and after the Gatorade ads were inserted – vs. the households that hadn’t purchased one of the titles, i.e. the control group.

What makes this study noteworthy, beyond it’s factual statistics, is that it’s the first time that this form of measurement of in-game advertising’s effectiveness has been measured by these standards. We’ve all seen, thought, or heard of IGA’s reach and sales driven motivation, but until now, no one had broad reaching numbers. Obviously, part of this study was to put this stamp on the industry, but also a nice push for EA, and the video games industry as a whole, stating, ‘We’ve got the space, technology, and platform – and now the proof that the method works!’

“Nielsen’s study is a milestone for interactive entertainment,” said Elizabeth Harz, Senior Vice President of Global Media Sales at EA. “For the first time, advertisers are able to link the value of their in-game marketing or sponsorship to actual sales. Now brands can feel confident adding gaming as a core media channel for their advertising.”

 

Social Gaming advertising spend to reach $220M this year

Thursday, August 12th, 2010

According to eMarketer, advertising budgets for social gaming will increase 20 percent this year, up to a massive $220 million. The advertisements include in-game as well as banners in social gaming titles, mobile apps not included – meaning the spend could be well over $300 million. eMarketer places the 2011 spend even higher at $293 million, with again, mobile apps spend not included.

118045eMarketer states that advertisers spent around $144 million in 2009, and the 20 percent 2010 increase is based on conservative estimates, as eMarketer themselves point out that the social games business continues it’s juggernaut growth pattern.

eMarketer reports that the U.S. market accounted for $142 of 2010’s $220 million spend, down from $144 one year prior. Non-U.S. properties will see the majority of game advertising dollars increase, up to $78 million from $39 million one year prior.

The 2011 forecast will see $192 million spent on U.S. social gaming advertising, with the rest of the world $101 million, bringing the total spend to $293 million.

The report points to major social gaming companies such as Zynga and the new Disney/Playdom venture deriving the majority of their revenues from virtual goods (80%), but notes that this drive in popularity has certainly increased the viability of said properties on advertisers’ radars.

At the Fortune Brainstorm Tech conference this past July, Zynga head Mark Pincus said, “Advertising will be an important part of the business model,” but he believes that future social game advertising will need to be “invented” rather than being the same things advertisers have already seen

 

Chevrolet partners with Microsoft for virtual Volt test drive via Kinect

Wednesday, June 23rd, 2010

Announced at the 2010 Cannes Lions International Advertising Festival, Microsoft and Chevrolet have partnered to bring the worlds first mutliscreen advertising campaign that takes advantage of the upcoming Kinetic’s controllerless gaming interface. The project will promote Chevy’s Volt electric car launch later this year. From a gamers view, Kinect offers an entirely new way of interacting with video game titles, whereas from an Advertisers view Kinect offers a unique way of connecting with consumers by allowing them to virtually physically interact with a product.

chevy_voltThe Volt IGA will take place within “Kinetic Joy Ride,” Microsoft’s first sans controller racing title. After gamers view the video ad in-dash on Xbox LIVE or the Web, the Volt will be unlocked and available for a test drive.

“The Volt applies advanced environmental technology to give Chevrolet drivers freedom from the gas pump, making it one of the most exciting developments the automotive industry has seen in years,” said Jim Campbell, U.S. vice president, Chevrolet Marketing. “Our marketing campaign needs to reflect this. Kinect allows us to bring the excitement of the showroom to the living rooms of our customers. It’s a way for us to replicate the experience of physically engaging with a product that is essential to the customer’s purchasing decision.”

And while Kinect has been touted for it’s innovation and “never seen that before” technology and interaction capabilities, this campaign illustrates a number of revenue generating possibilities for Microsoft and advertisers. Not only can consumers take a product for a virtual test drive, but advertisers can extend a campaigns reach via Microsoft’s various resources. For example, an extension of the Volt campaign under consideration involves a mobile brand experience. Consumers can add a local Chevrolet promotion to their calendar to take the Volt for a real-world test drive, or use Bing’s voice search to locate a dealer near them.

“Chevrolet Volt is not only offering a new way for car buyers to interact with and learn about a vehicle before heading to the dealership,” said Darren Huston, corporate vice president of the Global Consumer & Online group at Microsoft. “It’s enabling people to virtually test drive the Volt from the comfort of their own living room. This campaign showcases the kind of breakthrough digital campaigns we can deliver for marketers when we combine great partnerships with leading-edge software innovation.”

Given what the Chevrolet Volt is and what it stands for, I couldn’t think of a more fitting partner to test the multimedia crossover advertising waters. Technology of what type meets technology of another. The ultimate question is, after the novelty of Kinect wears off, will we be back to the same old argument about IGA, or has Microsoft established a compelling enough experience to make it last the duration?

 

Rumor: Sony to cut half of Liverpool staff

Tuesday, February 2nd, 2010

Late last week rumors started circulating that Sony may be cutting it’s Liverpool UK studio staff by half. Exact numbers are not official, but Sony has confirmed that the Liverpool studio will be ‘restructured’ as part of a ‘project prioritization’. Over the weekend inside information started to leak that the ‘restructuring’ could compromise up to half of the studio’s numbers. A staff member, speaking under condition of anonymity, said that the layoff restructuring process was “looking heavy,” estimating that “around half us may be gone.”

sce_logo_140905As of today, Sony has declined to comment on the Liverpool studio status, and the numbers remain an estimate/rumor. However, on Friday Sony did say that a number of active projects at the firm’s second largest development studio in Europe, will “cease immediately”.

“Our North West Studio Group has been, and will continue to be, a vital cog in the WWS family, with a history of producing genre defining games such as MotorStorm, WipEout, Formula 1 and WRC,” read a Sony statement released on Friday.

As you’ll remember, WipEout HD recently suffered a setback when Double Fusion’s in-game advertising (served at 1080p resolution) caused massive load times, thereby upsetting more than a few gamers. While this fiasco certainly didn’t help things, there’s no apparent direct connection to Sony’s decision to slash jobs at the Liverpool studios.

The restructuring rumors started surfacing just on the heels of a recent media report that indicated that Sony’s third fiscal quarter (October – December) could run as high as $1 Billion. If accurate, this projection could outdo even the most optimistic of all analysts’ predictions. Japanese news source Nikkei reports that the skyrocketing profits could have to do with “strong sales of LCD TVs and payroll cuts and consolidation of facilities.”

 

Massive and comScore partner to put real numbers behind in-game advertisements

Friday, November 13th, 2009

In game advertising is still a relatively new medium, but until now, both providers and purchasers of the medium had no concrete measurement tools to gauge effectiveness. There have been a number of one-off studies done, with positive results, but nothing done on a (pardon the pun) Massive scale. Partnering with leading internet metrics and market research firm comScore, Massive Inc., a wholly owned subsidiary of Microsoft Corp., will not be able to measure the firect impact that in-game advertising has on consumer online behavior. Call this a win for advertisers everywhere.

It’s no secret that there’s a very viable market in the gaming market, and Massive is one of the big three providers of IGA. They insert (in most cases) non-intrusive ads on billboards in urban landscapes for example, or slide up ads just above the scoreboard display in Madden – something very similar to what a user would see in this environment, or television broadcast. However, while the ads have shown to be popular and consumer motivators, due to the lack of solid data, and their relative newness, advertisers have still been weary to pull the trigger on launching campaigns.

“We know from 85-plus independently verified post-campaign studies that in-game advertising increases brand engagement,” said JJ Richards, general manager of Massive. “But what we didn’t know was the correlation between in-game ads and consumer action. Through this collaboration with comScore, we will also now be able to measure those consumer actions that result from in-game ads. We think this has the potential to literally ‘change the game’ for both advertisers and publishers who want to improve the effectiveness of their in-game ad efforts.”

The Massive/comScore partnership will now connect the dots between ads that users view vs. the actions they take after seeing said ad. Essentially, the two companies have managed a route that will give an overall picture of action and response from a viewer, without violating end user privacy policies.

The method works as such: Microsoft has a set of gamertags for users on their Xbox Live service. These tags provide game identifications and Microsoft knows the exact campaigns that are running within these games. Likewise, under the same umbrella, Microsoft also has Windows Live login data for Hotmail users. Combine these two together, and Microsoft now has a (more or less) complete picture about any given gamers’ preferences, and which ads they’ve seen and haven’t seen. By utilizing their Anonymous ID technology, Microsoft can then strip away any personal information and assign each user with a unique number.

But that’s only one half of the story. On the other side of the fence, comScore has around two million volunteers that offer up their web habits. If and when these users log into Hotmail or Xbox Live, the path between adding up the dots between what ads these users have seen, and what they do on the web within a specified time period is relatively short. To add an additional level of data security, the anonymous data communications between Microsoft and comScore are in an encrypted environment.

comScore’s preliminary research data using this method indicates that those who were exposed to in-game ads vs. those that had not are 280 percent more likely to visit a TV channel’s web site. The study also showed a 125 percent increase in search queries for a movie rental brand and a 57 percent increase in visits to its website.

The announcement coincides with the second annual Microsoft Advertising Gaming Upfront event in New York City — the only event of its kind that showcases new video game titles from leading game publishers available for brands to connect and engage audiences on the Massive in-game advertising network.

comScore and Massive have submitted this new methodology to the Advertising Research Foundation for validation.

 

Nielsen reports record gaming for June 2009

Tuesday, August 11th, 2009

According to a new report published by Nielsen Co., this past June was a banner month in video game play. While sales of consoles might have been flat, it appears that those that already own a console (or two) spent record amounts of time (measured in minutes) gaming. According to a recent NPD Group survey June ’09 hardware sales took a beating, dropping 31 percent when compared to June ’08.

Compared to June 2008, Nielsen’s year-over-year numbers indicate a 21 percent increase in time spent with games. On average, gamers spent 12.8 hours playing during the month of June.

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Of particular interest, the Nielsen survey clearly indicates that consumers have reached the crucial critical mass numbers with ‘new generation’ consoles, the Xbox 360, PS3, and Wii, as half the minutes played during the month of June were dedicated solely to these consoles. Nielsen’s director of video game services, Geraldo Guzman comments, “The transition has happened. Now that there is critical mass on the new generation of consoles, it gives marketers a chance to reach gamers on the platforms which offer in-game advertising.” An interesting point, as currently only the Xbox 360 and PS3 support dynamically served in-game advertising. However, let’s not forget about the recent WipEoutHD iga fiasco.

The Nielsen study also indicates that more than 50 percent of all gamers are over the age of 18 (insert marketing opportunity here), with teens 12 – 17 making up the largest segment of minutes played players, a massive 25 percent.

 

Sony/Double Fusion ad HD IGA’s to WipEoutHD – gamers cry foul

Tuesday, August 4th, 2009

In principle, this concept sounds awesome, groundbreaking, stupendous even in the boardroom. However, it looks like someone overlooked that one important step of ‘unobtrusive’ when programming the 1080p quality in-game advertising.

WipEout HDBundled into the new Fury DLC pack, Sony’s tapped IGA provider Double Fusion to retroactively fit the title with some revenue generating ads. No problems thus far, as it’s a pretty fair statement to make that 99.44% of gamers are used to seeing a billboard ad or two, and of course the blatant Coca-Cola vending machine, etc. For the most part, these in-game ads aren’t getting in anyone’s way of game enjoyment, and arguably ad a further touch of realism to the experience.

Again, Double Fusion gets credit for being the first IGA firm to implement true 1080p quality advertisements into a video game. And fittingly, the firm chose a futuristic title to kick off the HD ads campaigns in. “By introducing high-resolution dynamic video ads into WipEout HD, Double Fusion is responding to advertiser demand and offering an engaging ad format while pushing in-game ad innovation to a new level,” said Jonathan Epstein, CEO of Double Fusion. “The title is one of the most popular and visually stunning available on the PlayStation Network and a perfect vehicle to connect advertisers to a captivated audience. It comes as no surprise that advertisers have already signed up for WipEout HD even before the launch of the new video ad units in the game.”

Ok, again, so far so good. So as the classic Wendy’s advertising campaign questioned, “Where’s the Beef?” The beef comes our way via seconds. Let’s be honest: load times are a bummer. Every game under the sun has them, and it’s just the way things work. However, keeping players engaged in what they’ve paid for, mainly the game, is something that every developer shoots for. Most players would like to be spending their time shucking and jiving, rather than watching a scrolling progress bar. To that end, it looks like Double Fusion and Sony are placing advertising dollars over gamer satisfaction. As demonstrated by Ryaldeco, the standard load time for WipEout HD is around 8 seconds. Compare this load time to what now takes around 19 seconds if an ad plays.  Ouch.

Fair enough, 19 seconds isn’t go to kill anyone, but when one is used to a load time of half the current state (if an ad plays – reports range from 3 to 5 times per hour), you could see why this has caused somewhat of an uproar from a dedicated community. To add insult to injury, WipEout HD is a paid title. Perhaps if the game were free-to-play, and either microtransaction or IGA supported – well, in that case, players get the title free of charge, so a bit of monetization somewhere is to be expected. However, for players that have already laid $20 (or so) down….

Again, in principle, Double Fusion is to be commended for pushing the envelope, and utilizing previously untapped resources to push the format forward. On the other side of the coin, it’s a shame that progress comes at the cost of time, which ultimately leads to engagement.

Update: Eurogamer is reporting that Sony has pulled the offending ad.  “The ad has been removed from WipEout HD and we are investigating the situation to ensure that any in-game advertising does not affect gameplay,” said a Sony spokesperson.