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ANIMATION WORLD MAGAZINE - ISSUE 5.6 - SEPTEMBER 2000
Making Money Online: Game Creatorsby Jacquie Kubin Adaboy (www.adaboy.com) has teamed up with gaming Web sites to create a new revenue stream for game creators -- advertising dollars. Working within the gaming environment, Adaboy technologists use patented Targeted Message Technology (TMT) to put ads into the texture, or face, of online games. Located in Pittsburgh, Pennsylvania, Adaboy is relatively new to the Internet space with the September 1999 release of the proprietary TMT platform. Still in the early stages of growth, the company has so far brought advertisers to only a handful of games, but it is actively working on agreements with developers and entertainment destinations, such as online malls and gaming sites. The company is unique in that it promotes a win-win situation for all parties involved, particularly the game developer looking to establish a name, and the advertiser looking for a specific audience. "Traditionally, smaller and independent game developers have had a hard time making a living as the game goes to the shelf and then is sold for a limited period of time," says Barbara Pearson, Director of Marketing, Adaboy, Inc. "Adaboy gives the online game developer a revenue stream that goes beyond play-value, providing ongoing revenue for the creator."
Guaranteed Target This is accomplished when a user signs up for free games from the Adaboy Web site or Adaboy host gaming sites like Free Play USA (www.freeplayusa.com), Real Games Free (www.realgamesfree.com), Best Women's Game Site (www.realfreegames.com) and the College Free Stuff site (www.collegefreestuff.com). The Targeted Message Technology is triggered when those users create an ID and password, providing their gender, zip code and birth date. The sign-in process also requests, but does not require, a player's name and e-mail address and provides enlistees the opportunity to request only family safe games and to either ban or accept tobacco, liquor or adult in nature ads.
"We refer to each game player as a qualified lead," says Pearson. "We target the advertising based on gender and sex, not by the game. Two people -- one male, one female, but each playing Matrix -- are going to see different ads." This type of delivery channel is extremely effective in that the advertisement cost is based on the number of qualified views by a targeted audience demographic. Adaboy claims that advertisers are not charged just on views, but views by individuals meeting specific demographics. In addition, Adaboy provides post-delivery authentication reports including viewer breakouts, and length and frequency analyses allowing the advertisers to know which games their demographic plays most. As with other Internet companies paving new ground, Adaboy has yet to establish a firm cost per thousand or commission structure but initial plans called for a $40-per-thousand-views charge to the advertiser. Those dollars are then divided between the game creator, the "host" web site and Adaboy, who expects to take approximately 20% depending on the quality and life expectancy of the game. "For game developers, both the shareware and retail earnings models can be less than reliable and highly seasonal," says Pearson. "When games are Adaboy-enabled, the developers receive part of the advertising revenue every time a game is played, thereby producing an ongoing revenue stream."
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