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Video Game Makers and Advertisers Get Warm and Fuzzy

FEBRUARY 28, 2006

Midway Games Inc. and Double Fusion have struck a multiyear deal to have dynamic ads placed in online video games that will play on next-generation consoles such as Microsoft's Xbox 360 and Sony's PlayStation 3. The games in the deal included "Stranglehold" and other titles currently in development.

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A just-announced deal between a game maker and an advertising company points to the growing phenomenon of placing ads in video games, including those of the online variety.

Despite this promising development, a recent survey of AD:TECH attendees by MarketingSherpa showed that in-game advertising was well down the list of advertising tactics they will be spending money on in the near term. However, the same attendees noted that they anticipate a dramatic increase in video game ad spending by the end of the year and into early 2007.

Planned Spending in the Next Year on Emerging Advertising Tactics according to US Online Marketers*, December 2005 (% of respondents)

However, the Yankee Group, in another survey, points to robust growth as we head toward the end of the decade:

US In-Game Video Game Advertising Revenues, 2003-2009 (millions)

To read more about these promising developments and other trends in video game advertising, purchase eMarketer's Video Games: Where to Now? report. 

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