• by David Goetzl , December 13, 2006

With marketers--particularly in the auto category--increasingly looking at in-game product placement as an awareness-raising tool, Lexus is launching a new initiative with Microsoft's Xbox 360.

Under the deal, several virtual 2007 Lexus models, starting with the IS350 sports sedan, will be available for download to be driven in the Atari Test Drive Unlimited game. Four other models will be ready for downloading next spring on an Xbox Web site.

"This campaign integrates these companies in an innovative way ...," says David Teichner, CEO of media marketing services company Channel M, adding that it "showcases the luxury and performance of Lexus with the realism of Atari's work." Channel M orchestrated the deal.

This partnership marks the first time Lexus has turned to in-game marketing. The promotion is billed as "a test drive for consumers, from the comfort of their couch."

Audi and Nissan are other car marketers linked with the game, in which players compete in races or take flashy cars for a spin on hundreds of miles of spectacular "virtual" Hawaiian roads. Both brands currently get a plug on the XBox site for the game: "After the download, head to the nearest Audi or Nissan dealer and check them out."

Channel M looks to give brands exposure in "nontraditional" venues, from video games to amusement parks to gyms. Other Channel M clients include VH1, Jim Beam, Dodge and the Discovery Channel.