Analyst predicts game advertising to exceed $2 billion by 2012

A report from Parks Associates forecasts that game advertising spending in the US will increase from USD 370 million in 2006 to over USB 2 billion by the year 2012.

Of the various categories of game advertising forecasted, in-game advertising is expected to experience the highest growth rate, increasing from USD 55 million in 2006 to more than USD 800 million in 2012.

Overall, game advertising's compound annual growth rate of 33 per cent is expected to be higher than other major advertising such as television, radio, print, and the internet.

"Advertising in electronic games had an average monthly household expenditure of less than 50 cents in 2006, while broadcast TV was at $37, meaning advertisers are not using the gaming medium to its full potential," said Yuanzhe Cai, Parks Associates' director of broadband and gaming.

"If executed correctly, game advertising can provide a win-win solution for advertisers, developers and publishers, console manufacturers, game portals, and gamers."

The Parks Associates report, entitled Electronic Gaming in the Digital Home: Game Advertising, provides profiles of 26 key players in the game advertising industry.