Massive CEO Claims Gaming Ads To Reach Nearly $2B
Created 04/12/2006 - 23:00
files/pictures/picture-35.jpgDuring the keynote address delivered at the 2nd annual Advertising in Games conference in New York, Massive Inc. ceo Mitch Davis predicted that ad spending on in-game advertising will reach between a $1.6 and $1.8 billion in the U.S. by 2010, accounting for roughly 3% of total media spending, reports MEDIAWEEK. In comparison to previous estimates, Davis' claim is far larger than forecasts issued by both JupiterResearch and The Yankee Group last year.
"I think there has been broad acceptance of in-game advertising as a new medium," said Davis, whose remarks came almost a year to the day after his company launched what it dubbed as the first dynamic in-game advertising network which allows advertisers to swap ads in and out of videogames which are played using an Internet connection.
So far, Massive has sealed deals with 38 publishers and runs ads in 60 different game titles. According to Davis, Massive has served ads in more than 65 million game sessions since its launch.
"We've passed the tipping point, to use a cliché, where [in-game advertising] is less about experimenting and more about building it into business," he said. "We've had lots of repeat customers."
Massives clients include the majority of the major film and entertainment studios, as well as brands such as Coca-Cola, Subway, Honda and Gillette.
"If you look at companies like Unilever and Procter & Gamble, it took them five to six years before they spent a dollar online," he said. "Now they are moving quickly into games."
In addition, Davis said Massive would be expanding from the typical billboard-like signs displayed in the background of games. At the event, he unveiled several new ad prototypes, including more interactive placements. In one example, a gamer could peel back a billboard ad to receive a special code that could be used to receive a free iPod. In another, a character in a motorcycle game pulled into a BP gas station to refuel his vehicle.
Massives chief competitors include DoubleFusion, who has run dynamic ads in several countries and will soon launch ads in several U.S.-based titles, and IGA, which has run ad campaigns for brands such as Red Bull.