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MediaPost Article on Advergaming vs. In-Game Advertising

** Please note that this post reflects my personal views, not necessarily my company, IGA Worldwide**

It's been a while since I've posted as I've been traveling but I'm back now and read an article through Online Media Daily (MediaPost) on "Advergames Outscore In-Game Ads."  At a panel at OMMA conference here in New York City on Tuesday, a bunch of executives (mainly advergame company execs) discussed how brands can get into video game advertising space and the focus was primarily focused on advergaming for the following reasons:

  • Doesn't require the same degree of coordination
  • Distribute for free
  • Advergames can build buzz

I'm going to argue this article.  It's a farce.  First of all, the panelists were mostly from advergaming companies so this immediately creates a bias.  I've personally worked on both advergames and in-game advertising (SIGA/DIGA) and can say that putting together an advergame is a headache.  Have you ever created a website for someone?  If you have, you know all the coordination that goes into that including sourcing of creative guidelines, assets, color approval, site logic, etc.  This all applies to advergames- UNLESS, you buy a "templated" advergame and re-skin it.

Re-skinning an advergame is just short of buying a templated website.  You're using a game that someone else is/has distributing as well... just with different colors and a logo.  Is that unique?  Another issue with advergames is that there is no barrier to entry.  Anyone can produce a simple game.  Advergames are a dime a dozen and are popping up all over the web and eventually, consumers will start getting the same game with different skins. 

Distribution:  There are only a handful of brands that drive traffic to a branded entertainment site that they own.  How are you going to drive the distribution of your advergame?  Give it out at trade-shows?  We all know how hard it is to synch in-store distribution to a marketing campaign... how often does that actually happen?  People say getting advergames "out" there is the simple part... distribution is never simple. 

In-game advertising (inclusive of dynamic and static) piggy backs on the game's distribution through traditional retail channels and digital.  The brand does not have to worry about the logistics of this - which is a big burden off their shoulders.  Since in-game advertising often occurs in retail based video games, there are a fixed amount of them, so space is finite.  This means that this space is premium space as it's fixed.  If we could create new games and have them traditionally distributed when we want them, then the space wouldn't be finite, thus, diluting the opportunity.

In-game advertising is a premium placement within a video game which gives highly targeted and contextual exposure to an advertiser in a hard to reach area:  the person's home.  Imagine someone playing a game and viewing your brand and message for hours.  It's a reality.  Not many advergames are as emmersive as Battlefield 2142.... oh wait, none.

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IGA Worldwide & EA Sign Deal

IGA Worldwide, the pioneering in-game advertising company (I am the Founder) has signed a multi-title deal with the worlds biggest video game publisher, Electronic Arts (ERTS).  The first title we will be delivering dynamic advertising into is Battlefield 2142, a futuristic combat game slated for release in mid-October.

This is a fantastic day for us and we look forward to carrying the momentum!  If you want to see some awesome footage of BF2142, check out this Youtube video.

Original Press Release

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IGA Worldwide & Codemasters Sign Exclusive Deal

It's been a busy summer for us at IGA Worldwide announcing new funding, Simbin, a measurement deal with Interpret, and now, an exclusive arrangement with Codemasters for leading titles across multiple platforms including the next generation of consoles.

More info here.

IGA Worldwide Raises Another $5m

Iga_logo My current startup, IGA Worldwide Inc., has raised another $5m from Intel Capital and our existing investors, Easton Capital, Morgenthaler Ventures and DN Capital.  This additional capital brings us to $17m.

The money will be used to grow IGA’s relationships with publishers and extend global operations to support customers in North America, Europe and Asia.  Justin Townsend (CEO) has stated that the company is in discussions with big publishers and is closing deals for advertisements in games set to ship at the end of the year and during 2007.

A lengthier writeup appears on RedHerring.com

IGA Worldwide Announces Major Racing Titles

Yesterday, IGA Worldwide Inc announced that they have signed Simbin, the world leading game developer to a multiyear in-game advertising agreement.

Games to be added to the Radial (R) Network as part of the deal:  GTR (based on FIA GT) and a new series based on the World Touring Car Championships

Why this deal is important:  contextual in-game advertising.  Automotive games lend themselves fantastically to in-game advertising.  Most automotive games are realistic and they already have brands within generally (autos, etc).  With signing these games from Simbin, IGA Worldwide instantly brings in world class games and also, is able to deliver advertisers premium content and substantial reach.

Agenda Inc & In-Game Advertising

Agenda Inc., one of the companies I have utmost respect for as a thought leader and market analysis organization has posted a bit about the IGA Worldwide Inc in-game advertising campaign in the AAA title, Test Drive Unlimited.  For those of you who do not know, Atari is the publisher of TDU and Ben Sherman has integrated their clothing in the game so drivers can pick their driving attire....more here.

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Getting In The Game: Ben Sherman

An article came out in Sunday's edition of the International Herald Tribune called On Advertising: Getting In The Game.  The article references a placement IGA Worldwide Inc has done in a game called Test Drive Unlimited from Atari.  The game has yet to hit the streets (been released) but is highly anticipated as one of the best automotive games of the year.

The Ben Sherman campaign, for instance, will feature virtual billboards displaying the company's logo and clothing, which drivers will see as they navigate around Hawaii, where "Test Drive Unlimited" is set.

Because the game, which will be available for the Microsoft Xbox 360 and PCs this spring, will allow users to play online, Ben Sherman will be able to update those billboards with changing seasonal displays.

The game industry calls this "dynamic advertising," and it is expected to generate much of the growth in spending on advertising in games.

Dynamic advertising helps solve one of the biggest problems with in- game advertising: Because few games sell more than a few hundred thousand copies, it has been difficult to reach mass audiences. Using dynamic ads, however, IGA and other agencies can now patch together virtual "networks," placing ads in multiple games, just as real-world billboard operators can provide a variety of poster sites.

A new T-Mobile campaign, for instance, appears in games like "CustomPlay Golf" and "Trackmania Nations."

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<a href="http://technorati.com/tag/in-game+advertising" rel="tag">in-game advertising</a>, <a href="http://technorati.com/tag/videogames" rel="tag">video games</a>, <a href="http://technorati.com/tag/ben sherman" rel="tag">ben sherman</a>, <a href="http://technorati.com/tag/advergame" rel="tag">advergame</a>, <a href="http://technorati.com/tag/IGA" rel="tag">IGA Worldwide Inc</a>, <a href="http://technorati.com/tag/tech" rel="tag">tech</a><a href="http://technorati.com/tag/Darren Herman" rel="tag">Darren Herman</a>

NYC Blizzard

I thought I'd post a few photos from today's blizzard here in New York City.  Looks like we have about 2 feet of snow on the ground - and it's not stopping yet!  It's going to be mayhem getting to work tomorrow... Nyc_snow_small Snow_small_color

Future of Music

I’m currently reading The Future of Music by David Kusek and Gern Leonhard as I’m extremely fascinated by the digital music space. I dabbled in the digital music downloading space back in 2001 when Dynamify Records setup our own indie-distribution label and provided forth our own payment systems and DRM. After 6 months running Dynamify Records as a distribution only service, we shut it down due internal re-organization.

So, I’m back taking a look at the space and see many applications for it. Growing up, we had Hotwire, Morpheus, Kazaa, eDonkey, EasyNews, and many other P2P and usenet programs that allowed the very simple downloading of whatever type of file you can imagine.

Today, some of these services still exist, but organizations like the RIAA are going after users with lawsuits if they are illegally downloading owned IP. In the music industry, this is a very big deal as Britney Spears and Eminem have publicly said that illegal downloading is wrong – whereas, The Greatful Dead and Franz Ferdinand have publicly said it’s beneficial for the bands.

One of the points the book brings up is that content is not king. Anyone has access to content.  Kusek and Leonhard argue that the customer is King Kong and service is Godzilla. Interesting notion. 

ITunes is successful because it has the hardware and software that allows for the distribution of media efficiently.  Services like Rhapsody and Napster don’t have the same simple process as Apple for downloading and storing on a portable media consumption device and thus are runners up to iTunes. When you own both the hardware (iPod) and software (iTunes), you can become a lot more effective in the distribution of your music than just owning one end of the value chain.

It’s my belief that iTunes will convert to a hybrid payment model that will include subscription and pay-per-download to compete with Napster and all of the other subscription services. It is not cost beneficial to fill up your ipod with $10,000 worth of AAC files. Way too expensive.  I’d be one of the first subscribers to their catalog if they would offer a subscription service…why not? It’s coming….

December 9 / Friday - Concert

Thought I'd post this on the blog... Twin-A is playing the Mercury Lounge here in NYC at 8:30pm EST on Friday (tomorrow).  I'll be hosting co-workers, friends, and colleagues at the show.  Lots of great industry minds coming out to support one of the hottest and upcoming acts of the last 2 years.  You can check out Twin-A at http://www.twin-a.com or http://www.myspace.com/twina

"IN OR OUT" -heard on MTV's Power Girls (March 2005)
“FIRECRACKER” – heard on Dawson’s Creek
“BEAUTIFUL ONES” – heard on Dawson’s Creek
“YOUR LITTLE SECRET” – heard on NBC’s Superstars
“BEAUTIFUL ONES” heard on NBC’s Superstars
“YOUR LITTLE SECRET” – heard on MTV RoadRules.
"FOREVER AND A DAY" - heard on and performed live on Metro TV

Let me know if you're coming out to support - if you find me, I'll buy you a drink!  I'll be arriving around 7:30/45 and staying throughout the set.  If we get enough people to show from IGA Partners/Dynamify, we'll all go out afterwards.  Happy Holidays.

Family Guy Anyone?

For those of us who can only watch maybe 30minutes to 1hr of television per week, we need to be very selective of the shows we choose to watch.  There is one show, Family Guy, that I try not to miss.  I find it extremely hilarious and usually get a good laugh based on the jokes and product placements within.  I have found a hiarious clip online that should put a smile on your face:

http://www.thatvideosite.com/view/523.html

Su Doku Anyone?

Went to visit Brooke in San Diego this weekend before I head out to Minneapolis and Detroit on business and we spent Sunday afternoon in La Jolla at a little coffee shop on the sidewalk playing one of the most addicting games, Su Doku.  I had purchased a book of Su Doku puzzles for my flights but wanted to introduce Brooke to the madness.  Before we knew it, we played for 1.5 hours!  The games are challenging and make you use logic - so I guess I'm having fun and educating myself at the same time.  Not bad.  Have you played?