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January 21, 2007

Massive Opportunity - An In-Game Advertising POV

I'll be candid.

I am really tired of a lot of advertising out there.

That might sound like something odd to say for someone in advertising, but I feel that way for the most part because I know most conventional advertising is largely ineffective at reaching me - a high-value demo (if I do say so myself). As an example, I watch a high-definition channel from my local cable provider that is programmed out of Toronto instead of locally. I listen to very little radio - only a few minutes a day in the car. Other than the music I listen to is from iTunes. I don't read the local newspaper. The most news I get is from the Globe and Mail RSS feed in Google's Gmail.

One thing I have been excited about is the in-game advertising offering available through Massive Incorporated, one of Microsoft's recent acquisitions. I became acquainted with this company before all that and I really like what they are doing for advertising.

Here are some thoughts on why I think in-game advertising is such a good media placement.

Perhap the biggest merit of in game-advertising is that the ad is placed in an environment where the user's attention is extremely focussed.
Have you every talked to someone playing a video game? You don't exist. And God-forbid you walk in front of the TV! They will freak out/or try to look past you to continue what they were doing before the interruption. There are no potty breaks or PVR fast forwarding as there is with broadcast television. And it's hard to ignore because it's embedded in the game environment - unlike convential banner advertising that we have all learned to ignore because it's existence on the page in no way supports our agenda as a user and is generally placed on the periphery of the content.

It's the most measurable placement in it's delivery of a quality impression.
Massive counts an impression once it has been on screen for a cumulative 10 secs. A 9 second impression doesn't count or cost anything. So when you pay for an impression you know it has been seen. This is its biggest advantage over any banner ad (it's closest sibling to an existing media choice by technical definition). You can not measure how many times a consumer has looked at your banner ad. You only know when the web browser has requested it from the server and placed it somewhere in a webpage. There is no way of know if the user has scrolled past it on the page or more than likely not paid a bit of attention to it because they are looking at the part of the page that they are interested in (which I'm sorry to say is not the ads). In this way, I would argue the length of the impression and the placement of the impression are far superior.

There is a certain caché of the in-game the placement by positioning your brand as a peer with the other advertisers currently doing placements in this channel.

This one is hard to quantify but would you rather have an ad in Fortune or the local chamber pub if the same amount of people would see it? Would you rather appear beside an ad for some other global brand or appear alongside a local restaurant or auto dealer? Placing an ad in a game has the benefit of placing you alongside other global brands that are placing ads. In the process, I think this demonstrates a higher brand value and esteem because of the company you are keeping as an advertiser.

First mover advantage.
This stuff is new. It's good positioning for a brand to be where the new things are happening. And if you place localized ad (that they can offer by measn of IP geotargetting), it's going to be noticed by users - especially now when it's new.

It's a more modern & immersive type of placement.
The usual "content you like" then "ads to pay the bills" then "content you like" then "more ads to pay the bills" is getting a bit old in places. Branded content and product placement is a big growth area in advertising (some would argue the future of advertising - I hope to goodness it'll be tastefully done) but it makes it difficult for local brands to play the game because their audience and brand is geographically constrained. While no character in the game is going to interact virtually with your product in the game (today anyway - tomorrow maybe), this is an opportunity to secure a more immersive ad placement than the usual fare and I think that makes it a little more palatable to a cynical and advertising-weary public.

It's skews towards the elusive 18-34 demo which is often identified as a key audience but is hard to find in conventional media placements.
They've fled radio. They multitask on the computer (likely chatting on MSN) while watching television. Forget most print. Gaming has become a social hub with new web-networked consoles and voice communication connecting you with your friends during game play. And if they've left conventional media, it's been to come here.

It's a media placement that gives access to early technology adopters and influencers.
Find someone who gaming on an XBOX360 console and you've got someone at ease with technology, an early adopter and very likely someone who influences the technology decisions of those around them. Take me as an example - since buying an Apple computer in the spring - two other Apple computers have been purchased by members of my family because of my influence. Influencers are a worthy target when promoting technology-based products or services.

It's inexpensive to get in the door and an excellent value in comparison to other electronic placements.
In my opinion, it's a very modest investment for chance to delve into and gain some experience in an emerging online marketing opportunity alongside the big boys. The CPM may be higher than a conventional banner ad but it's well worth it. Industry click-throughs on banner ads are well below one percent. Banner ads are much weaker in terms of recall. (I'd defy anyone to recall a half dozen they saw yesterday). Frankly, I'd value an in-game ad at 10 times a conventional banner ad for all of the reasons above.

So, it's been interesting to see the brands that are placing advertising. It's generally the leading-edge clients and agencies with larger budgets that are pushing forward. I know Taxi has been placing ads for BMW Mini (good on ya!). I know some telcos and cellphone providers are advertising. As more agencies and clients figure out the value proposition here, it could get pricey and exclusive. But depending on how game title developers react to the demand for an 18-34 male demo, they may add a bunch of ad inventory opportunities into the game (but at the risk of gamer backlash). This is a delicate balance for them and I expect this will change something in terms of the consumer model for game pricing.

I'm going to be talking more about this. It's the most interesting and worthwhile ad product I've seen in a long time.

Advertising NEEDS more of this kind of thing...

Check out the Massive website at:

www.massiveincorporated.com

Posted by Derek Leverington at 10:08 PM

January 10, 2007

One Louder - 3D Outdoor for Brown Communications

Here's some 3D outdoor we did at work outside our building. What do you expect when a bunch of people in the industry are musicians?

I think I like this perhaps better than the last 3D we did. I think we should leave this outdoor up for good.


www.brown.ca/11

I put this photo up as hi-res as well as another one up on Flickr too.


And yours truly with a little Marshall loudness of my own.

Posted by Derek Leverington at 4:18 PM

January 4, 2007

RIP Pubsub?

Went looking for PubSub this morning.

Not to be found.

I haven't followed them much but judging by the entry on Wikipedia, it looks like there is some financial trouble afoot.

http://en.wikipedia.org/wiki/PubSub_Concepts

Posted by Derek Leverington at 9:13 AM