Advergaming to be worth $4 Billion in 2008
by Conrad Quilty-Harper 
{ Jan 24th 2006 at 7:30AM }
Only half
an hour ago we showed you a game
aimed at changing people's perception of in-game ads. Now we bring you the reason why advergaming is completely
inevitable. According to a report in the Wall Street Transcript, detailed by Next Generation, the market for in-game
advertising is set to increase to $4 Billion by 2008. That's a whole lotta' money that game developers, publishers and
marketers are no doubt eyeing up right this very moment. The report states that the companies behind advergaming (which stand to benefit from this development), believe that the gaming audience is more receptive to advertising than web surfers and TV watchers. That's true, but browsers have pop-up blockers and TVs have mute buttons. How long can it be until owning an advergaming blocker is a must for online gamers?
[Via Slashdot]
Reader Comments (Page 1 of 1)
Grizzly @ Feb 6th 2006 8:50PM
I find the idea of ads in games depressing. Runes any escapist vibe carfuly built up from state-of-the-art graphics.
Anyone remember Cool Spot? even at a young age I knew something wasn't right.
http://www.the-underdogs.org/game.php?name=Cool+Spot
Sloopydrew @ Jan 24th 2006 8:08AM
Most. Depressing. Post. Ever.
Seeing that stupid "Samsung" logo in Perfect Dark Zero drives me nuts. It's only going to get worse. Gaming was sort of the last sanctuary for those of us who don't welcome advertisements in all of our entertainment. How is advertising going up, as games shoot up to $59? That price is nuts. I think I'm going to sell my 360. I'm getting sick of seeing a game that's $39 on the PC going for $59 on the 360. Piece of crap rip-off console.
Thomas Crymes @ Jan 24th 2006 8:45AM
#1 has relevant comments, but I think his ire is a little over the top. Bottom line is if you don't like the advertising don't buy the games that have them. If enough people do that, then things will change.
I don't mind advertising that is realistically within the game (ala PGR 3). If it seems very blatant and takes you out or the experience, then I don't like it. Selling your 360 because of advertising is just silly. PC games will have them too.
And the reason console games are more expensive accross the board is because PCs are open. Consoles are not. For every unit sold, Microsoft, Sony, Nintendo gets a slice of the pie. So to get the same profit as a PC game, they have to charge more. That said, they can only charge what people will pay.
And consider this. A gaming rig that equals or exceeds the 360 costs twice as much, so you are paying the a lot of the difference in the games up front. Pay now or pay later. It is your choice.
I'm suspecting that most of the game buying public will tolerate ads. And for those who don't like it, a large percentage will bitch in forums like this, but still buy the games.
On the other side, companies will have to consider the backlash from consumers who will have ill will toward there product for gratititous advertising where none should be. I may not mind a Subway billboard in an urban environment, but a Subway crate in the desert will anger most people.
Ima Pseudonym @ Jan 24th 2006 8:58AM
Ahhhh CR*P! nuff said.
JGE @ Jan 24th 2006 9:10AM
Why, if the games are being increasingly subsidised by advertising dollars, do the prices of the games continue to increase or hover around $50.00? Seems we should be seeing the opposite, no?
jonathan @ Jan 24th 2006 9:40AM
I personally don't mind some advertising. If it can suck money out of the ad companies, and help make my games a bit better/cheaper, then I'm okay with a modest amount of ads. As long as they actually get better/cheaper, that is. Also, if a game is about realism, there are real ads all over real life. If they simply make it a real part of the in-game world, instead of a blatant ad, that would be bad. For instance, an ad for Mountain Dew in a fantasy game just isn't going to cut it.
Besides, someone will likely come up with hacks that remove the ads.
I will have to shoot somebody, however, if I am going to be forced into more opening movies/ads when I load up a game, much like DVDs nowadays.
Thomas Crymes @ Jan 24th 2006 10:03AM
#4. Games are 50 dollars because people will pay 50 dollars. Now, some enterprising company could sell a lot of in-game advertising and promote a $25 game undercutting the others starting a pricing war.
Maybe companies sell two versions of games. One with in-game ads and one without. One priced reguarly and the other significantly reduced. Would you spend an extra $20 for no in-game advertising?
It is inevitable. I just don't know how they will advertise in fantasy games. Will that genre go by the way side because it won't be a big revenue stream? I don't think so. If people buy it, they will make it.
We collectively control the market. Don't forget it. I have no sympathy for people who play victim.
dan @ Jan 24th 2006 10:19AM
I dont mind when games like pgr3 have a mcd's in the level, because it is based on a real location with a real place, thats ok. but if i turn the corner every five minutes and see posters and other crap for a company, then my view on games will change. i used to like gaming better when it wasnt on such a global scale
dan @ Jan 24th 2006 10:23AM
i really dont believe that advertising will change the price of games, cause they will rattle off their list of excuses to charge a high price. "its hard to edit in those game adverts..."
Phranctoast @ Jan 24th 2006 11:14AM
Where i dont believe game prices are going to change because of advertising, I still think its not horrible idea. The cost of next gen gaming is going to be so high, the developers have to do something if they want to continue to make great games. If some advertising means I will get a larger, longer, gaming experience with a game that had a budget that normally wouldnt be able to subsidize that, then so be it. I dont want game experience to start lacking because graphics are getting so good that it cost a small fortune to make a game.
Ln @ Jan 24th 2006 2:40PM
Do you guys think the powers that be will start a committee to decide which games can use advertising(PG3) and which game can't? If they find that the consumers are short-sighted and gullible enough to accept adverts in some games, they will slowly follow that by using them for all.
10 years from we'll have 5min ad breaks in-between levels , and even then the publishers will push for shorter levels so they can cram in more advertising time. They'll tell us they need to do this in order to make even bigger games, and the likes of Phrantoast will accept it.
I can't believe you people are making concessions for this kind of crap. We'll never learn I guess. The stupid will ruin it for everyone yet again.
Ian @ Jan 24th 2006 4:07PM
"Advergaming" doesn't really bother me to much as long as it fits, like a Wendy's or Coke machine in GTA or Bilboard. We've had advertising in games for a while, I remeber driving through crazy taxi to KFC all the time.