Part of 1Up's podcast mentioned issue of in-game advertising on Friday's show. Personally, I don't like the sound of this...

http://www.smh.com.au/news/technolog...335735272.html

Grand theft advertising: what a game

By Michael Evans
May 3, 2006

IN 2002 Mitch Davis, an Australian businessman, was hijacking cars on his video console when he had a startling idea: what if he could put real ads into the background of his video game.

Now Mr Davis's idea is set to revolutionise the video gaming industry and net him a fortune, with the maker of the XBox, Microsoft, reportedly set to buy his firm, Massive, for up to $US400 million ($526 million) in an effort to boost its online advertising revenue.

Mr Davis, who is from Sydney but is now in the US, had his idea while playing the popular car crime game Grand Theft Auto - "for research".

"I'm driving down the street in the car and there are [ads] all over the place and they were all fake ads and I thought, 'Oh my God, what if these were real ads? It would be phenomenal'," he said in a recent interview.

With another Australian, Nicholas Longano, and a New Zealander, Claudia Batten, he began work trying to persuade video game companies that they could make money from the idea. Where games previously featured fake background ads for decoration and realism, Massive's software allows a game's developers to specify locations in a game where real ads can appear during play.

In car racing games, ads appear on billboards as cars race past or on the sides of other vehicles. In other games, ads appear on posters, pizza boxes, drink cans and TV screens.

Massive's program downloads the ads from the internet when players are online, meaning that players will always see the latest ad campaigns and that video game firms can generate local advertising revenue from around the world.

In return for providing the advertising space, the game makers get a cut of advertising revenue in an industry fore- cast to grow fivefold, to $US730 million, by 2010.

Microsoft is looking to strengthen its online advertising position to combat its rival Google, and could do this by linking ads to its XBox.

Although Mr Davis refuses to comment on the deal, The Wall Street Journal reported people familiar with the talks saying that Microsoft would announce a deal valued between $US200 million and $US400 million this week.

Massive, which is based in New York and employs 80 people, already has Coca-Cola and Honda as clients, and contracts for advertising in games including Swat 4 and Splinter Cell.

Men aged between 18 and 34 are the prime targets of the Massive software.

Duh, I have said this for the past 10 years.

Some games are already using in-game advertising. Splinter Cell: Chaos Theory does, and there are some others but I can't think of them right offhand.

how is this new? ads have been a part of video games for the past 10 years or so... All the snowboarding games have 'sponsors' that are real companies... There are tons of other examples, but none come to mind

True, but this concerns me because it seems as if it is taking it to the next level. What if I have to sit through ads during a load screen? They already do the equivalent of this at the movie theater, what's to stop them from doing it in games?

Yeah but this is more real time, you download the ads when you go online.

Exactly, and with gaming moving more content online and the trend with consoles remaining constantly online (Xbox 360, PS3) this could lead to an increase in advertising and 'innovative' ways of marketing.

You missed out on $400MM.

I can see it now in Oblivion.

"You've found the AXE(T)M Brand shield! Gives you 10 armor points, +5 to personality, and a great smell to attract ladies!"

EA has been doing this with thier sports games for years.

I wonder if this is the same company that Vivendi used for SWAT 4, which "won" this award:

http://www.gamespot.com/pages/featur...p?day=3&page=1

I wouldn't have a problem with this if it meant that the game companies using the ad software lowered the price of the games. Kind of how advertising pays for broadcast radio and tv now.

Total agreement. Obviously ads in Oblivion would be silly - but in GRAW seeing real life bulletin boards wouldn't be horrible - especially if it subsidizes some of the freakin 60$ price.

I don't understand how this guy is selling his company with this so un-revolutionary idea for so much damn money. This is old shit, he didn't come up with it. I don't get it.

Joanna Dark carries a Samsung or Nokia phone doesn't she?

Maybe the guy did the legwork to get the game makers to sign agreements to put the approved ads in the games. Like he formed some alliance of gamemakers willing to bend over for advertising dollars. Something CocaCola and whoever has been unable to crack into.

Need For Speed: Most Wanted uses Cingular. The Burger King idiot guy is in Fight Night Round 3. This stuff is already all over the place.

Add in all the marketing for Burnout: Carl's/Hardees, Gamestop, Best Buy, Circuit City, Spike TV, Alienware, etc.

Save Ferris, that is the only thing I could come up with as well.

Sigh.

the only problem I have with it is they wont pass the "savings" on to the consumer, and I wouldnt be surprised if we come across a game or two where performance or something else is hurt in order to cram in more advertising. If we havent already that is.

But I want to hear this in a game... "You've found the Magical sword of flame, +2. Would you like to supersize it to +4?"

Now that would be funny.

Maybe in game you could protest labor conditions of the Mages Guild. Stupid bosses sending people on dangerous missions for heavy rings. We need some well inspectors in there and if you need a well inspector you want to hire Miyu's Inspection. Miyu's veteran well inspectors will make sure there is adequete breaks to refill your air meter. If we determine the passageway is too long we will insist management stash some weak potions of the sea on the floor for those who were unable to afford the spell or an enchanted item.

Isn't the "revolutionary" part the part where it continuously downloads new ads via the internet, so that ads are always updated? Otherwise, I remember as far back as Wipeout there were ads for Red Bull, which wasn't even out in the US at the time.

It doesn't appear many people actually read the article.