Advertising products in video games is not new, but if recent events are any indication, it is the wave of the future for marketers seeking to target young, tech-savvy consumers with money to spend.
Standard & Poor's Equity Research says a recent report that Microsoft is seeking to buy a company called Massive, a pioneer in the field of product and advertising placement in video games, is proof
positive of the trend's potential. S&P points out that major marketers like Coca-Cola Co., and Honda already have contracts with Massive, and that if the sale goes through Microsoft will be perfectly
positioned as the Madison Avenue of online gaming. The company also reports that Yankee Group, a market research outfit, says video game ad sales will reach $732 million by 2010, compared to an
estimated $56 million in 2005. "I think Microsoft is well aware of the different business perspectives that video gaming and the Internet present," says S&P equity analyst Scott Kessler. "They're
acutely aware of the unique opportunities and scale of online gaming." He added that most gamers agree that the game experience becomes more compelling and lifelike when the games include real-time
advertising for real-life products.
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