Massive launches in-game advertising network
US firm Massive Inc. has completed the beta testing phase of what it describes as "the world's first videogame advertising network". The company plans to place ads in 40 leading titles by the end of the year.
The network operates via Massive's AdServer, which connects with the Massive AdClient SDK integrated into game engines during development. Advertising is then downloaded and positioned within the game using texture replacement technology.
Massive says it offers an ideal means of reaching 18-34 year old males, a group which "increasingly shuns television in favour of video games." According to statistics cited by Massive, members of the demographic spent 30 billion hours playing games in 2003 - more than they spent watching prime-time television. Over 20 million, or 70 per cent, of US men aged 18-34 are gamers, Massive added.
âOur dynamic video game advertising network gives marketers an efficient, highly flexible solution for reaching the growing, global gaming audience,â said CEO Mitch Davis.
âThe Massive Network represents an entirely new media that combines the most engaging, active entertainment medium with contextually relevant advertising that positively enhances the consumer experience.â
Companies are able to purchase advertising using a model similar to that used in television advertising. Adverts can be targeted according to the time of day and the consumer's location, and customised to fit the game environment by the development team.
Daily reports allow advertisers to observe and manage the effectiveness of the campaign delivery, and Massive predicts that advertising through the network can contribute $1 to $2 in incremental profit per unit.
Global advertisers already signed up to the Massive Network include Coca-Cola, Dunkin' Donuts, Honda, Intel, Nestlî, Paramount, T-Mobile, Universal Music and Verizon.
The company says it will incorporate ads into 40 leading titles from 10 different publishers by the end of 2005, including Funcom's Anarchy Online, Mall Tycoon and Ski Resort as well as Splinter Cell: Chaos Theory from Ubisoft.
"Ubisoft believes that Massiveâs dynamic advertising network will play a key role in helping video game publishers leverage their content to create new revenue opportunities in an increasingly challenging global market,â said Jay Cohen, Vice President of Publishing at Ubisoft.
Ole Schreiner, project director for Funcom, added: "Anarchy Online has been running in the Massive Network for three weeks, and the response from our audience has been very positive. The contextual advertising delivered by Massive adds realism to the game play experience.
âThe revenue weâre generating allows us to offer an advertising supported version of the game and use the ad dollars to further support game development, so the innovations create a win-win situation for all.â
Massive has also announced a new deal with Nielsen Interactive Entertainment, who will provide third-party accountability and measurement for advertising through the network.
"Interest in videogames as a mass medium will grow exponentially as more and more advertisers get an up-close feel for the power in-game exposure will have on their brands,â said Michael Dowling, General Manager of Nielsen Entertainmentâs Interactive Group.
âMassiveâs announcement today will help to hasten that growth and marks an important step towards in-game advertising becoming an essential advertising medium.â