• by Tameka Kee , September 10, 2008

Editor's Note: This story was updated after publication.

U.S. marketers are set to spend more than $700 million on in- and around-game advertising this year, according to research from Parks Associates. So who do brands like GM, P&G and T-Mobile turn to when they're ready to tap into the gamer market? Currently it's Play, the game-centric unit of Publicis' Denuo. Online Media Daily caught up with Matt Story, director of Play, to find out what kinds of campaigns the shop has been working on, his thoughts on the state of the in-game advertising market, and what it's like being part of Publicis' VivaKi Nerve Center.

Online Media Daily: So does the Play team cultivate its own client roster, or do you develop campaigns for other agencies as part of Publicis' VivaKi Nerve Center?

Story: It's a bit of both. We have our own clients like Old Spice, but we can also work across clients with other agencies. For example, Pontiac's Virtual Final Four encompassed everything from gaming to online media and events. So we leveraged branding assets from Leo Burnett, worked with Digitas for the online creative and GM Planworks for the media buying. And when we work with other Publicis agencies, they don't see Play as part of Denuo. We become like an extension of their existing team.

OMD: How is Play different from some of the other gaming-focused shops out there?

Story: A lot of agencies have approached it differently. I talk to guys all the time that are wearing their in-game cap one day, then their online video cap and then their viral marketing cap the next. But because Play is a dedicated team, we know gaming. It's not just part of a digital media program, so we won't try to force-fit a game or campaign onto a client, and we have the in-house creative talent to make sure that the ads don't piss off the gamers themselves. Our team visits with developers about once every three months to make sure they know who we are and that we understand that advertising should not interrupt that sacred space between a gamer and their game.

OMD: How do you pitch new business?

Story: We don't actually go out and pitch, because our current roster keeps us pretty busy. We spend our time thinking about how to continue to bring them interesting opportunities, and how to help them be innovators in the gaming space. It's a good position to be in because we can be selective about the projects we work on--we're never forced into doing something that we don't feel good about.

OMD: Are there any particularly innovative campaigns that come to mind?

Story: We worked on a T-Mobile promo for EA's upcoming NBA Live 09. The game features Live 365, a daily update that pulls in real statistics and results from the night before to keep a gamer's roster accurate. So if Kobe Bryant has a night where he's shooting at 81% in real life, the next day it will be reflected in his performance in the game. If someone gets injured, it's reflected in the game. And the gamer gets this info by downloading a scouting report. EA could have charged for the report, but they can offer it for free with T-Mobile's sponsorship. T-Mobile's message is about staying connected, so what better way to convey that than to help the gamer stay connected to what's going on with their team? There will also be branding on various screens throughout the game.

OMD: One of the most consistent complaints we hear from marketers is that emerging media channels don't have reliable metrics. How are you helping clients gauge the success and ROI of their gaming campaigns?

Story: We have both quantitative and qualitative measures. At the top level there are CPMs, so clients can compare what they're doing in gaming to other digital programs. Then there are the stats like how many people bought or played the game, how many times they played, or the amount of time spent. But we're also working on research with companies like AC Nielsen and Interpret, to study metrics like whether the ads influenced brand perception and message recall. There's also lead generation, because if we're able to deliver them a qualified lead, they can associate a specific value to it. But our clients aren't necessarily functioning on an ROI model yet.

OMD: Where do you see the future of gaming and game advertising headed?

Story: I think we'll see some of the focus shift to indie games and smaller, independent labels. Platforms like Xbox Live Arcade have made it much easier and less costly to develop games, so someone could feasibly make a game in their spare time and sell it to players for $13 per download. I also think we'll see many more non-traditional gaming companies coming in to the space, because as you move away from the cost that comes with making a game for a console, games and game advertising become much more accessible.

OMD: That sounds similar to the "consoles are dead" arguments made recently by WildTangent CEO at OMMA Gaming, among other outlets.

Story: I don't think it kills the console at all--I just think consoles will evolve into something more than just a gaming box. Why should a gamer have to have a DVR, an Xbox 360 or PS3, a PC and a separate surround sound system taking up all that space in their living room? By the same token, I don't think gamers that only want to play head-to-head online matches in Madden should have to pay for the full experience. Maybe they'll be able to buy a portion of the game and the teams they like instead of paying for the whole season at some point. But consoles aren't going away, and neither are actual games. Ideally, you could put ads in any game and drop the price down to $30, but we're not there yet. As long as games still cost $60 each, people are going to want a disk or at least a manual to show for it--not just ones and zeros stored on a massive hard drive.