Social gaming is huge at the moment. Zynga are firmly owning this space and are consistently proving the business-case for social gaming, with the majority of their revenue coming from users purchasing virtual-goods that enhance their experience. As much as social gaming is a revenue-generator for many tech companies, it’s also providing a whole new advertising opportunity for brands. We saw the first high-profile example of this when Microsoft sponsored Farmville earlier this year. Since then, how is it progressing and is it really providing value to advertisers?
The answer to the second question, seems to be a big fat yes. Though it is still new and it is arguably only the more tech/social savvy companies that are really eyeing this up, the revenue potential is clear. According to a recent survey issued by Nielsen and Electronic Arts, when Gatorade invested in in-game advertising by placing branded goods in different online points, the real-life spend on Gatorade increased by 24%. Clearly this is an exciting, lucrative area and the ad dollars are following. The ad spend on game advertising in the U.S. was at $370 million in 2006 and this is expected to expand to $2 billion by 2012. And it’s casual/PC/mobile in-game advertising that will reap this revenue. In 2006 this accounted for 27% of the game advertising market, and by 2012 it will account for more than 80%. This is big money and big business and represents another stage in social advertising that can potentially transform advertising as we know it.
Case study – McDonalds
Earlier this month McDonalds experimented with one of the first advertising examples of its kind, by teaming up with Zynga to create a branded farm for just one day, that offered users the chance to grow mustard seed and tomato crops. They were then rewarded with branded products that would help them improve the growth of the their own farms. Though it only lasted 24 hours, it was available to every single Farmville user, being shown as a neighbour farm.That’s instant, deep ingrained (excuse the pun) exposure to nearly 70 million Farmville players worldwide. Continuar leyendo «Trends in in-game advertising»