In-game advertising (IGA) is

advertising Advertising is the practice and techniques employed to bring attention to a product or service. Advertising aims to put a product or service in the spotlight in hopes of drawing it attention from consumers. It is typically used to promote a ...

electronic games An electronic game is a game that uses electronics to create an interactive system with which a player can play. Video games are the most common form today, and for this reason the two terms are often used interchangeably. There are other common ...

. IGA differs from

advergame An advergame is a form of advertising in video games, in which the video game is developed by or in close collaboration with a corporate entity for purposes of advertising a brand-name product. While other video games may use in-game advertising (s ...

s, which refers to games specifically made to advertise a product.Matthew Yi (2005-07-25). "Advertisers pay for video games - Product placement tradition no longer free ride for business".

San Francisco Chronicle The ''San Francisco Chronicle'' is a newspaper serving primarily the San Francisco Bay Area of Northern California. It was founded in 1865 as ''The Daily Dramatic Chronicle'' by teenage brothers Charles de Young and Michael H. de Young. The pa ...

. http://www.sfgate.com/cgi-bin/article.cgi?file=/chronicle/archive/2005/07/25/BUGVRDREUT1.DTL. Retrieved 2011-04-14. The IGA industry is large and growing. In-game advertising generated $34 million in 2004, $56 million in 2005, $80 million in 2006, and $295 million in 2007. In 2009, spending on IGA was estimated to reach $699 million

USD The United States dollar (symbol: $; code: USD; also abbreviated US$ or U.S. Dollar, to distinguish it from other dollar-denominated currencies; referred to as the dollar, U.S. dollar, American dollar, or colloquially buck) is the official ...

, $1 billion by 2014Arif Durrani (2009-05-26). "Screen Digest forecasts $1bn boom for in-game advertising"
Brandrepublic
http://www.brandrepublic.com/News/908125/Screen-Digest-forecasts-1bn-boom-in-game-advertising/. Retrieved 2011-04-14.Enid Burns (2009-04-28). "Video Advertising Still Set for Growth in Down Ad Spend Year". http://www.clickz.com/clickz/news/1708732/video-advertising-still-set-growth-down-ad-spend-year. Retrieved 2011-04-14. and according to ''

Forbes ''Forbes'' () is an American business magazine owned by Integrated Whale Media Investments and the Forbes family. Published eight times a year, it features articles on finance, industry, investing, and marketing topics. ''Forbes'' also r ...

'' is anticipated to grow to $7.2 billion by 2016. The earliest known IGA was the 1978 computer game '' Adventureland'', which inserted a self-promotional advertisement for its next game, '' Pirate Adventure''."The Making of Adventureland".

EDGE Edge or EDGE may refer to: Technology Computing * Edge computing, a network load-balancing system * Edge device, an entry point to a computer network * Adobe Edge, a graphical development application * Microsoft Edge, a web browser developed ...

(162): 104–107. May 2006. IGA can be integrated into the game either through a display in the background, such as an in-game billboard or a commercial during the pause created when a game loads, or highly integrated within the game so that the advertised product is necessary to complete part of the game or is featured prominently within

cutscene A cutscene or event scene (sometimes in-game cinematic or in-game movie) is a sequence in a video game that is not interactive, interrupting the gameplay. Such scenes are used to show conversations between characters, set the mood, reward th ...

s.Greg Boyd, Vejay Lalla (2010-02-11). "Emerging Issues in In-Game Advertising".

Gamasutra ''Game Developer'', known as ''Gamasutra'' until 2021, is a website founded in 1997 that focuses on aspects of video game development. It is owned and operated by Informa and acts as the online sister publication to the print magazine '' Gam ...

. http://www.gamasutra.com/view/feature/3927/emerging_issues_in_ingame_.php. Retrieved 2011-04-17. Due to the custom programming required, dynamic advertising is usually presented in the background; static advertisements can appear as either.Helen Leggatt (2009-03-18). "Major in-game ad firm struggling"
BizReport
http://www.bizreport.com/2009/03/major_in-game_ad_firm_struggling.html. Retrieved 2011-04-17."In-Game Advertisting"
Entertainment Software Association
http://www.theesa.com/gamesindailylife/advertising.asp. Retrieved 2011-04-17. One of the advantages of IGA over traditional advertisements is that consumers are less likely to multitask with other media while playing a game, however, some attention is still divided between the gameplay, controls, and the advertisement.Grant Jenman, Stephanie Becker (2008-06-30) "In-Game Ads Put Brands in Play". ''

Adweek ''Adweek'' is a weekly American advertising trade publication that was first published in 1979. ''Adweek'' covers creativity, client–agency relationships, global advertising, accounts in review, and new campaigns. During this time, it has cover ...

''. http://www.adweek.com/news/advertising-branding/game-ads-put-brands-play-96175?page=1. Retrieved 2011-04-21.Moonhee Yang, David R. Roskos-Ewoldsen, Lucian Dinu, and Laura M. Arpan (Winter 2006). "The Effectiveness of In-Game Advertising: Comparing College Student's Explicit and Implicit Memory for Brand Names". ''Journal of Advertising''. http://business.nmsu.edu/~mhyman/M454_Articles/%28Product%20Placement%29%20Yang_JA_2006.pdf. Retrieved 2011-04-18.

Static in-game advertising

Similar to

product placement Product placement, also known as embedded marketing, is a marketing technique where references to specific brands or products are incorporated into another work, such as a film or television program, with specific promotional intent. Much of th ...

in the film industry, static IGAs cannot be changed after they are programmed directly into the game (unless it's completely online). However, unlike product placement in traditional media, IGA allows

gamers A gamer is a proactive hobbyist who plays interactive games, especially video games, tabletop role-playing games, and skill-based card games, and who plays for usually long periods of time. Some gamers are competitive, meaning they routinely ...

to interact with the virtual product. For example, ''Splinter Cell'' has required the use of in-game

Sony Ericsson Sony Mobile Communications Inc. ( ja, ソニーモバイルコミュニケーションズ株式会社) was a multinational telecommunications company founded on October 1, 2001, as a joint venture between Sony Group Corporation and Ericsson. ...

phones to catch terrorists.(2011-03-31). "Viral Video Features Inspired Product Placement of Dodge's Flagship Muscle Car"
PlaceVine
http://www.placevine.com/blog/2011/03/31/viral-video-features-inspired-product-placement-0f-dodge%E2%80%99s-flagship-muscle-car/. Retrieved 2011-04-25.Ted Boyke (2004-03-23). "Tom Clancy's Splinter Cell: Pandora Tomorrow World Premiere"
The Next Level
http://www.the-nextlevel.com/features/events/pandora-tomorrow-world-premiere/. Retrieved 2011-04-25. Unlike static IGAs, dynamic IGAs are not limited to a developer and publisher determined pre-programmed size or location and allow the advertiser to customize the advertisement display. A number of games utilize

billboard A billboard (also called a hoarding in the UK and many other parts of the world) is a large outdoor advertising structure (a billing board), typically found in high-traffic areas such as alongside busy roads. Billboards present large adverti ...

-like advertisements or product placement to create a realistic gaming environment.Gene Emery, "What's in a Name: Product Placement in Games,"

Reuters Reuters ( ) is a news agency owned by Thomson Reuters Corporation. It employs around 2,500 journalists and 600 photojournalists in about 200 locations worldwide. Reuters is one of the largest news agencies in the world. The agency was est ...

. January 30, 2002.(2010-02-10). "In-Game Advertising Maximizes Marketing Dollars In Sports Category; New Mobile Advertising Opportunity for the Sports Industry"
Business Trends
http://businesstrends.wordpress.com/2010/02/10/study-shows-in-game-advertising-maximizes-marketing-dollars-in-sports-category/. Retrieved 2011-04-14. For example, many sports games incorporate these advertisements to simulate the heavy advertising within professional sports.David Radd (2007-02-22). "Sports and In-Game Advertising".

BusinessWeek ''Bloomberg Businessweek'', previously known as ''BusinessWeek'', is an American weekly business magazine published fifty times a year. Since 2009, the magazine is owned by New York City-based Bloomberg L.P. The magazine debuted in New York City ...

. http://www.businessweek.com/innovate/content/feb2007/id20070222_572137.htm. Retrieved 2011-04-14.James Brightman (2010-02-10). "Sports Games Proving Effective for In-Game Advertisers, Study Finds"
Industry Gamers
http://www.industrygamers.com/news/sports-games-proving-effective-for-in-game-advertisers-study-finds/. Retrieved 2011-04-14. Similarly, many games employ brand-name products such as guns and cars as in-game status symbols.Erika Brown (2006-07-21). "Product placement on the rise in video games - Marketers desperate to engage well-to-do market of 132 million gamers".

. http://www.nbcnews.com/id/13960083. Retrieved 2011-04-13.

DMA Design Rockstar North Limited (formerly DMA Design Limited) is a British video game development company and a studio of Rockstar Games based in Edinburgh. The company was founded as DMA Design in Dundee in 1987 by David Jones, soon hiring former cla ...

. Grand Theft Auto III. (

Rockstar Games Rockstar Games, Inc. is an American video game publisher based in New York City. The company was established in December 1998 as a subsidiary of Take-Two Interactive, using the assets Take-Two had previously acquired from BMG Interactive. Foun ...

PlayStation 2 The PlayStation 2 (PS2) is a home video game console developed and marketed by Sony Computer Entertainment. It was first released in Japan on 4 March 2000, in North America on 26 October 2000, in Europe on 24 November 2000, and in Australia on ...

, (v1.1). (2001-10-22).Michael McCarthy (2002-12-03). "HBO shows use real brands". ''

USA Today ''USA Today'' (stylized in all uppercase) is an American daily middle-market newspaper and news broadcasting company. Founded by Al Neuharth on September 15, 1982, the newspaper operates from Gannett's corporate headquarters in Tysons, Virgini ...

''. https://www.usatoday.com/money/advertising/2002-12-02-sopranos_x.htm. Retrieved 2011-04-13. These brand references may not be advertisements and are instead placed in the game purely for plot or design reasons. However, trademark owners sometimes object to unlicensed references to their trademarks. See, e.g., ''E.S.S. Entertainment 2000, Inc. v. Rock Star Videos, Inc.''''E.S.S. Entertainment 2000, Inc. v. Rock Star Videos, Inc.'', 547 F.3d 1095 (9th Cir. Cal. 2008). https://caselaw.findlaw.com/us-9th-circuit/1485435.html. Retrieved 2011-04-17.

Dynamic in-game advertising

Increasing Internet connectivity and bandwidth has increased the use of dynamic IGA, which allows the game manufacturer or its advertisement vendor to deliver advertisements remotely, update advertisements after the game is launched, and target advertisements based on time or geography.Reena Jana (2006-01-25). "Is That a Video Game - or an Ad?".

Business Week ''Bloomberg Businessweek'', previously known as ''BusinessWeek'', is an American weekly business magazine published fifty times a year. Since 2009, the magazine is owned by New York City-based Bloomberg L.P. The magazine debuted in New York City ...

. http://www.businessweek.com/innovate/content/jan2006/id20060124_792815.htm. Retrieved 2011-04-14.Enid Burns (2008-04-07). "In-Game Ad Network Taps Into Virtual Worlds"
ClickZ
http://www.clickz.com/clickz/news/1694387/in-game-ad-network-taps-into-virtual-worlds. Retrieved 2011-04-13. This approach combines the customization of web banners with the functionality of traditional billboards and posters as most in-game advertisements do not link to a website outside the game. Dynamic IGAs allow the game manufacturer or its advertisement delivery service to track advertisements in real time and capture viewing data such as screen time, type of advertisement, and viewing angle. This information may be used to improve future advertisement campaigns and to correct copy problems or make a current advertisement more appealing to players.Simon Carless (2006-10-17). "IGA's Townsend On BF2142 In-Game Ads".

. http://www.gamasutra.com/php-bin/news_index.php?story=11300. Retrieved 2006-10-22. Dynamic

advertising campaigns An advertising campaign is a series of advertisement messages that share a single idea and theme which make up an integrated marketing communication (IMC). An IMC is a platform in which a group of people can group their ideas, beliefs, and conce ...

allow IGA to be part of a time-sensitive advertisement campaign because they do not need to be designed months or years before the game is finished.Paul Hyman (2006-01-26). "Advertisers await game measurement". http://www.frankwbaker.com/videogameads.htm. Retrieved 2011-04-14. Dynamic advertisements can be purchased after a game is released to the general public are featured in a developer determined in-game location. For example, in October 2008, billboard advertisements were purchased in 10 swing states by then- US Democratic presidential candidate

Barack Obama Barack Hussein Obama II ( ; born August 4, 1961) is an American politician who served as the 44th president of the United States from 2009 to 2017. A member of the Democratic Party (United States), Democratic Party, Obama was the first Af ...

in numerous

Xbox Xbox is a video gaming brand created and owned by Microsoft. The brand consists of five video game consoles, as well as applications (games), streaming services, an online service by the name of Xbox network, and the development arm by the ...

games.Walter Alarkon (2008-10-14). "Obama Runs Ads in ‘Madden'"
The Hill
http://thehill.com/blogs/blog-briefing-room/news/campaigns/41660-obama-runs-ads-in-madden. Retrieved 2011-04-05.

Advertising in online-only games

Freemium and free-to-play

Freemium Freemium, a portmanteau of the words "free" and "premium," is a pricing strategy by which a basic product or service is provided free of charge, but money (a premium) is charged for additional features, services, or virtual (online) or physical ...

and

free-to-play Free-to-play (F2P or FtP) video games are games that give players access to a significant portion of their content without paying or do not require paying to continue playing. Free-to-play is distinct from traditional commercial software, which ...

games are typically playable online and provide a free basic game with options for players to purchase advanced features or additional items.Dean Takahashi (2011-02-26) "Will Microsoft conquer free-to-play games with Age of Empires Online?
GamesBeat
https://venturebeat.com/2011/02/26/will-microsoft-conquer-free-to-play-games-with-age-of-empires-online-video/. Retrieved 2011-04-14. They operate under the theory that a gamer will pay for additional in-game features after investing enough time in the game.Danc (2009-07-05). "Flash Love Letter (2009) Part 1". Lostgarden. http://www.lostgarden.com/2009/07/flash-love-letter-2009-part-1.html. Retrieved 2011-04-01. In freemium games like ''

Farmville ''FarmVille'' is a series of agriculture-simulation social network game developed and published by Zynga in 2009. It is similar to '' Happy Farm'' and ''Farm Town''. Its gameplay involves various aspects of farmland management, such as plowi ...

'', these transactions are typically one-time payments for specific in-game goods (

micro-transactions Microtransactions, often abbreviated as mtx, are a business model where users can purchase virtual goods with micropayments. Microtransactions are often used in free-to-play games to provide a revenue source for the developers. While microtrans ...

).Samuel Asher Rivello (2011-03). "How to make money with online games"
Adobe Edge
http://www.adobe.com/newsletters/edge/march2011/articles/article1/index.html?trackingid=IJQLF. Retrieved 2011-04-02. Free-to-play games like ''

Age of Conan ''Age of Conan: Unchained'' (formerly known as ''Age of Conan: Hyborian Adventures'') is a fantasy-themed massively multiplayer online role-playing game (MMORPG) developed by Funcom and published by Eidos Interactive for Microsoft Windows in 2008 ...

'' instead try to induce players to enter into a

pay-to-play Pay-to-play, sometimes pay-for-play or P2P, is a phrase used for a variety of situations in which money is exchanged for services or the privilege to engage in certain activities. The common denominator of all forms of pay-to-play is that one mus ...

relationship for premium content.John Callaham (2011-02-01). "Company of Heroes Online to shut down March 31"
Big Download
http://news.bigdownload.com/2011/02/01/company-of-heroes-online-to-shut-down-march-31/. Retrieved 2011-04-14. While typically generating income though these other revenue sources, freemium and free-to-play games often feature advertisements as well via splash advertisements or advertiser sponsorships of virtual-good giveaways as additional income.Jason Katz (2011-03-10) "In-Game Advertising: A Waning Star?"
The Marketing Arm
http://www.themarketingarm.com/index.php?id=24768. Retrieved 2011-03-15.

Pay-to-play

Pay-to-play games charge players to access the game content. Depending on the game environment, some pay-to-play games feature IGA. For example, ''

City of Heroes ''City of Heroes'' (''CoH'') was a massively multiplayer online role-playing game which was developed by Cryptic Studios and published by NCSOFT. The game was launched in North America on April 28, 2004, and in Europe by NCsoft Europe on Febru ...

'' and ''

Anarchy Online ''Anarchy Online'' is a massively multiplayer online role-playing game (MMORPG) published and developed by Norwegian video game development company Funcom. Released in June 2001, the game was the first in the genre to include a science-fiction ...

'' both use dynamic IGA in an urban game setting to mimic real world stimuli.(2008-04-03). "City of Heroes – In-Game Advertising"
MMORPG
http://www.mmorpg.com/gamelist.cfm/gameId/3/setView/features/loadFeature/1866. Retrieved 2011-04-14.Dan Fortier (2006-08-26). "Debate: In-Game Advertisements"
MMORPG
http://www.mmorpg.com/showFeature.cfm/loadFeature/828. Retrieved 2011-04-14. In contrast, fantasy games such as '' EverQuest II'' and ''

World of Warcraft ''World of Warcraft'' (''WoW'') is a massively multiplayer online role-playing game (MMORPG) released in 2004 by Blizzard Entertainment. Set in the '' Warcraft'' fantasy universe, ''World of Warcraft'' takes place within the world of Azer ...

'' may not include IGA when real-world advertisements do not fit contextually.

Blizzard A blizzard is a severe snowstorm characterized by strong sustained winds and low visibility, lasting for a prolonged period of time—typically at least three or four hours. A ground blizzard is a weather condition where snow is not falling ...

has previously remarked that it would not consider using IGA within World of Warcraft; conversely, SOE experimented briefly with an in-game

command-line A command-line interpreter or command-line processor uses a command-line interface (CLI) to receive commands from a user in the form of lines of text. This provides a means of setting parameters for the environment, invoking executables and pro ...

function allowing players to order food delivery from

Pizza Hut Pizza Hut is an American multinational restaurant chain and international franchise founded in 1958 in Wichita, Kansas by Dan and Frank Carney. They serve their signature pan pizza and other dishes including pasta, breadsticks and desse ...

in ''EverQuest II''.Andrew Edgecliffe-Johnson (2008-1-30). "Questions Raised Over Revenue Growth From Modern Advertising"
Financial Times
http://www.ft.com/cms/s/0/e7c50fce-ced6-11dc-877a-000077b07658.html#ixzz1G4iNCknW. Retrieved 2011-03-07.Ben Zackheim (2005-02-18). "Pizza and Everquest 2 – two great tastes that clog arteries together"
joystiq
. http://www.joystiq.com/2005/02/18/pizza-and-everquest-2-two-great-tastes-that-clog-arteries/. Retrieved 2011-04-14.

Virtual world A virtual world (also called a virtual space) is a computer-simulated environment which may be populated by many users who can create a personal avatar, and simultaneously and independently explore the virtual world, participate in its activities ...

s and

MMORPG A massively multiplayer online role-playing game (MMORPG) is a video game that combines aspects of a role-playing video game and a massively multiplayer online game. As in role-playing games (RPGs), the player assumes the role of a Player charac ...

s may host persistent online advertisements by allowing marketers to purchase virtual real estate. Aside from establishing a brand presence, companies can use it to test future real-world locations. For example, the

Aloft Hotels Aloft Hotels is a hotel chain based in North America, owned by Marriott International. The first hotel opened at the Trudeau International Airport in Montreal in 2008.

brand was established within

Second Life ''Second Life'' is an online multimedia platform that allows people to create an avatar for themselves and then interact with other users and user created content within a multi player online virtual world. Developed and owned by the San Fr ...

prior to the completion of its real-world counterpart.

Advertising industry reaction to IGA

The advertising industry has generally embraced IGA and advergaming as effective ways to reach 16 to 34-year-old males.Robin Wauters (2009-03-24). "Study: In-Game Video Advertising Trumps TV Advertising In Effectiveness".

TechCrunch TechCrunch is an American online newspaper An online newspaper (or electronic news or electronic news publication) is the online version of a newspaper, either as a stand-alone publication or as the online version of a printed periodical. Goi ...

. https://techcrunch.com/2009/03/24/study-in-game-video-advertising-trumps-tv-advertising-in-effectiveness/. Retrieved 2011-03-08."Reach Your Target Audience – Men". Microsoft Advertising. http://advertising.microsoft.com/ad-network/audience/men. Retrieved 2011-04-12.Ian Burrell (2011-02-18). "Is it game over for the virtual ad?".

The Independent ''The Independent'' is a British online newspaper. It was established in 1986 as a national morning printed paper. Nicknamed the ''Indy'', it began as a broadsheet and changed to tabloid format in 2003. The last printed edition was publish ...

. https://www.independent.co.uk/news/media/advertising/is-it-game-over-for-the-virtual-ad-2218305.html. Retrieved 2011-03-09. IGA is seen as an important means of gaining access to a generation of young males who use gaming as their relaxation activity instead of watching television.(2011-01-15). "iPad Taking Viewers Eyeballs Off The TV During Primetime". WorldTVPC.com. http://www.worldtvpc.com/blog/ipad-viewers-eyeballs-tv-primetime/. Retrieved 2011-04-14.Kristin Kaining (2006-11-15). "Games: they're not just for kids anymore"
News.msn.com/ NBC News
http://www.nbcnews.com/id/15702318. Retrieved 2011-04-14. Advertisers may also appreciate IGA's economic returns; a 2010

Nielsen Company Nielsen Holdings plc is an American information, data and market measurement firm. Nielsen operates in over 100 countries and employs approximately 44,000 people worldwide. The company was listed on the New York Stock Exchange (NYSE) and us ...

study showed that IGA had a return on investment of $3.11 per dollar spent.Gerardo Guzman (2010-09-14). "Video Game Advertising: Playing to Win… and Sell"
Nielsenwire
http://blog.nielsen.com/nielsenwire/consumer/video-game-advertising-playing-to-win%E2%80%A6-and-sell/. Retrieved 2011-03-08. In 2007,

Nielsen Media Research Nielsen Media Research (NMR) is an American firm that measures media audiences, including television, radio, theatre, films (via the AMC Theatres MAP program), and newspapers. Headquartered in New York City, it is best known for the Nielsen rati ...

branched out into the IGA space by announcing a video games ratings service, GamePlay Metrics, to serve in-game advertisers and measure IGA effectiveness.John Gaudiosi (2006-10-19). "Nielsen's GamePlay Metrics"
Businessweek
http://www.businessweek.com/innovate/content/oct2006/id20061019_803821.htm. Retrieved 2011-04-14. Several

advertising agencies An advertising agency, often referred to as a creative agency or an ad agency, is a business dedicated to creating, planning, and handling advertising and sometimes other forms of promotion and marketing for its clients. An ad agency is generally ...

ad networks An online advertising network or ad network is a company that connects advertisers to websites that want to host advertisements. The key function of an ad network is an aggregation of ad supply from publishers and matching it with advertiser's d ...

specialize in IGA, and even more traditional advertising agencies have experimented with IGA. However, many advertisers do not embrace video games as a viable advertising medium because of the continuing difficulties in measuring IGA's effectiveness despite the implementation of GamePlay Metrics, uncertainty about how many viewers the game will reach, and the long development cycle inherent in video games.Duane Kuroda (2010-10-11)
"Massive's Failure Proof Of In-game Advertising's Success"
ReveNews. Retrieved 2011-04-14.Zachary Glass (Fall 2007). "The Effectiveness of Product Placement in Video Games"
Journal_of_Interactive_Advertising
.html" ;"title="Journal of Interactive Advertising">Journal of Interactive Advertising
">Journal of Interactive Advertising">Journal of Interactive Advertising
Vol 8 No 1. http://jiad.org/article96. Retrieved 2011-04-18.

Reducing advertiser risk

Viewer numbers are hard to estimate because it is difficult to gauge the popularity of a game before its release; however, advertiser risk can be partially mitigated through benchmark-based advertisement payments on game units sold or a refund agreement if a certain number of game sales are not reached. This may not, however, protect the advertiser from an unwanted association with a poorly performing game or advertisement. It is also difficult to plan in-game advertisements because game development generally takes longer than the development and implementation of an advertising campaign; typically, most static advertisements must be disclosed to the developers at least eighteen months before a game is released. This timing discrepancy can be solved though use of dynamic advertisements, which are available for purchase at any time in-game space is available, but this choice constrains the advertisement to the in-game predetermined spaces and sizes and does not allow for highly integrated static ads.

Game industry reaction

Game publishers have mixed feelings about IGA. IGA can create new revenue streams; in some cases publishers' profits have increased by an extra $1–2 per game unit sold (in addition to the typical $5–6 profit per unit). Some mobile phone games have replaced charging fees to gamers with IGA, and it is an important source of income for browser-based and other Internet games that do not feature micro-transactions or pay-to-play."Kalador's FreePlay in-game advertising technology for mobile phone games powers MobileRated". 2007-03-19. http://www.mobilerated.com/news/20070319.html. Retrieved 2011-04-14.Owen Good (2009-05-21). "Indie Devs Turn To In-Game Ads After Piracy Strike"
Kotaku
http://kotaku.com/#!5264139/indie-devs-turn-to-in+game-ads-after-piracy-strike. Retrieved 2011-04-17. Some publishers see IGA as a way to offset growing game development costs, while others believe IGA will allow them to experiment with gameplay by reducing the financial risks associated with game development.Bobbie Johnson (2006-05-19). "Advertisers get young gamers in their sights".

The Guardian ''The Guardian'' is a British daily newspaper. It was founded in 1821 as ''The Manchester Guardian'', and changed its name in 1959. Along with its sister papers '' The Observer'' and '' The Guardian Weekly'', ''The Guardian'' is part of the ...

. http://technology.guardian.co.uk/games/story/0,,1778693,00.html. Retrieved 2006-10-20.William Vitka (2005-07-16). "In-Game Advertising - IGA Worldgroup Leads The Pack And They Might Be Getting It Just Right".

CBS News CBS News is the news division of the American television and radio service CBS. CBS News television programs include the '' CBS Evening News'', '' CBS Mornings'', news magazine programs '' CBS News Sunday Morning'', '' 60 Minutes'', and '' 4 ...

. http://www.cbsnews.com/stories/2005/07/15/tech/gamecore/main709467.shtml. Retrieved 2006-11-03. However, not all publishers have found IGA successful. In 2008,

Sony Corporation , commonly stylized as SONY, is a Japanese multinational conglomerate corporation headquartered in Minato, Tokyo, Japan. As a major technology company, it operates as one of the world's largest manufacturers of consumer and professional ...

expressed doubts about advertisement-funded games because of limited advertiser dollars and gamers' skepticism of IGA, although Sony completed an IGA deal 5 months later.Brian Ashcraft (2009-06-04). "Sony Make In-Game Ad Deal Official". Kotaku. http://kotaku.com/#!5012940/sony-make-in+game-ad-deal-official. Retrieved 2011-03-08. However, in 2010, an

Electronic Arts Electronic Arts Inc. (EA) is an American video game company headquartered in Redwood City, California. Founded in May 1982 by Apple employee Trip Hawkins, the company was a pioneer of the early home computer game industry and promoted the ...

representative remarked, "We actually aren't getting much from ad revenue at all. The in-game advertisement business hasn't grown as fast as people expected it to."Kris Pigna (2010-12-22). "EA: In-Game Ads Business Hasn't Grown as Fast as Expected"
1Up.com
http://www.1up.com/news/in-game-ads-business-hasnt-grown. Retrieved 2011-03-09. Another issue publishers and developers must deal with is integrating IGA into games without alienating or frustrating players. The general goal of IGA is to insert advertising that gets noticed while not interrupting the player's enjoyment of the game. Developers need some creative control of the IGA to ensure it fits the virtual setting, which can be an issue because advertisers usually want to project a certain image and protect their brand image.(2009). "Most Despicable Use of In-Game Advertising".

GameSpot ''GameSpot'' is an American video gaming website that provides news, reviews, previews, downloads, and other information on video games. The site was launched on May 1, 1996, created by Pete Deemer, Vince Broady and Jon Epstein. In addition ...

. http://www.gamespot.com/best-of-2009/dubious-honors/index.html?page=2. Retrieved 2011-04-16. Game companies worry that they may be forced to change the game as requested by advertisers if IGA becomes a common revenue source, and face a possible backlash from consumers.Quang Hong (2005-11-30). "Question of the Week Responses: In-Game Advertising?".

. http://www.gamasutra.com/view/feature/2472/question_of_the_week_responses_.php. Retrieved 2011-04-16. In some games it may be easier to rely on revenue from sales of

virtual goods Virtual goods are non-physical objects and money purchased for use in online communities or online games. Digital goods, on the other hand, may be a broader category including digital books, music, and movies. Virtual goods are intangible by defin ...

, as they may provide a more reliable and greater stream of income than advertising while having the advantage of being directly incorporated into the game experience and being under the complete creative control of the developer.

Gamer reaction

Gamer reaction to IGA has also been mixed. A 2009 study by an advertising company found that 80% of consumers correctly recalled an advertiser and 56% had a more favorable impression of the advertiser because it allowed them to play a free game. However, companies have found that gamers do not want distracting advertisements when they have already paid the retail price and/or a monthly subscription fee. Gamers have shown a distaste for advertisements that distract them while they are trying to enjoy themselves. A small, 100 participant, 2010 study suggested that gamers may be more likely to favorably respond to advertisements and products which are congruent with the game environment.Ben Lewis, Lance Porter (Spring 2010). "In-Game Advertising Effects: Examining Player Perceptions of Advertising Schema Congruity in a Massively Multiplayer Online Role-Playing Game"
Journal of Interactive Advertising
Vol 10 No 2.brown http://jiad.org/article131. Retrieved 2011-03-09. Gamers may feel that IGA is invasive and in some cases have dubbed IGA-supported software as

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.(2010-09-28). "HOWTO: Remove the annoying in-game advertisements"
Alloutgamers
http://aogamers.com/forums/showthread.php?7007-Remove-the-annoying-in-game-advertisements. Retrieved 2011-03-09.J.P. "Agon Thalia" Sherman (2009-01-05). "In Game Advertising Could Be the Next Best Thing to Gaming"
Ten Ton Hammer
http://www.tentonhammer.com/node/60433. Retrieved 2011-04-12 Some gamers choose to remove advertisements from the game experience, either by paying more for an advertisement-free copy or disabling the advertisements through exploits. In-game advertising can also lead to negative reviews for a video game, as occurred in 2013 with

Maxis Maxis is an American video game developer and a division of Electronic Arts (EA). The studio was founded in 1987 by Will Wright and Jeff Braun, and acquired by EA in 1997. Maxis is best known for its simulation games, including '' The Sims ...

' promotion of a heavily branded

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charging station as

downloadable content Downloadable content (DLC) is additional content created for an already released video game, distributed through the Internet by the game's publisher. It can either be added for no extra cost or it can be a form of video game monetization, enabli ...

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. Maxis claimed "Plopping down the station will add happiness to nearby buildings. It will not take power, water, or workers away from your city."

Effectiveness

Several academic researchers have attempted to understand how effective IGA is. The effectiveness of such advertising is debated by several scholars. Yang et al. found some types of recognition were low among college students, although players did retain word fragments in sports games. Grace and Coyle found that 35% of players could recall advertised brands in a controlled study of car racing games. Lee and Faber found that the primary factors for player-retention of IGA are location of brand messages in the game, game involvement, and prior game-playing experience.

References

{{reflist, colwidth=25em Advertising by medium Advertising techniques Advergaming Advergames Marketing techniques Promotion and marketing communications Video game development Revenue models