• Associated Press, Friday, October 20, 2006 12 PM

Nielsen Media Research on Wednesday announced its long-awaited electronic rating service for video games. It will compile the usage and demographic information using the same sample of 10,000 U.S. households it uses for its television ratings.

Advertisers have been clamoring for a rating service for video games for years. As the next level of console gaming moves online, advertisers have become particularly keen on interactive ad buys in games, including integrated product placements and two-dimensional in-game billboards and banners. Theoretically, Nielsen's new product will provide them with the neutral data they need to negotiate these deals rather than relying on game publishers for their data.

The new system is set for a mid-year 2007 launch (about 2 years later than Nielsen's original plan), and will comprise a database of games to be monitored on the current and next-generation console offerings from Sony, Microsoft and Nintendo. Nielsen hopes the new system will drive advertising investment and help convert video-game advertising from discretionary to essential. Game publishers, whose margins are being squeezed as games become more expensive to make, could use the added revenue.

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