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Greystripe Unveils Mobile Game Ad Network
by Shankar Gupta, Wednesday, May 10, 2006, 6:00 AM

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Mobile advertising firm Greystripe has created a network of ad-monetized mobile games, which allows advertisers to place display or video spots before or after users download popular casual games to their mobile phones, the company announced today at the E3 video game convention in San Francisco.

The network, which was quietly launched about two months ago, places pre- or post-roll ads next to casual video games that users can download onto their cell phones. Currently, the network has three major advertisers signed--Zagat Survey, Modtones, and GPSHopper. The interface is self-service, and advertisers who have signed up can access the ad-serving system using a Web-based service.

According to eMarketer analyst James Belcher, the market for ads placed alongside games, both casual and major titles, is growing. "The whole area is really taking off, as evidenced by [in-game advertising firm] Massive's purchase by Microsoft. As far as mobile in-game ads, it makes a ton of sense," he said. "The most popular games for mobile phones tend to be casual games, and the problem traditionally has been getting people to pay for them--they're simple games that people happen to love, but getting them to pay for downloads has been tough, so getting sponsorship is the way to go."

Belcher said that although the major buzz is around bigger titles, the casual games market is significant, and will be targeted by advertisers in the future. "You don't hear a lot about the millions of people who are playing Sudoku or Bejeweled," he said. "You're going to see it from other in-game ad firms, you're going to see if from other sponsors, but you're definitely going to see more in-game ads targeted to handsets, and casual games in general."

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