Computer Games As Advertising Vehicles

Advertising revenue has been on a downhill roll for some time now and Web advertising, once thought to be the key to profitability for many Web sites, has gone form bad to worse. Studies show that less than 1% of Internet users pay any significant attention to banner or skyscraper ads. In addition, pop-up and pup-under ads are thought to be annoying by just about everyone. The last thing an advertiser want to do is annoy a potential customer.

One way to find a new advertising medium on the Web is to look at what is working, what is growing. Americans spend $7.4 billion a year on computer games, and that number is set to grow rapidly as new titles with stunning, lifelike visuals continue to roll out. Wireless gaming is about to come to a cell phone near you as next generation networks and enhanced phones allow providers to offer another reason to add minutes to your plan and put money in their pocket.

Advertisers have noticed and are beginning to turn to computer and Web-based games as a new way of hitting a large target market: ages 18 to 49. For example, Procter & Gamble’s Web site hosts a game where players help Captain Cool eliminate dandruff creatures with bubbles form bottles of Head and Shoulders shampoo. Statistics show that 35% of the players are repeat players and, using the increasingly popular “viral-marketing” technique, players are encouraged to invite friends and family to play. In this case, players have forwarded the game over 4,000 times so far. How many banner ads have you forwarded to family or friends?

The auto industry is an early adapter of this new form of advertising and is already beginning to see very positive results. For instance, visitors to the MSN Gaming Zone Web site can “drive” in a NASCAR race, “sitting” behind the wheel of a replica Dodge-sponsored racecar. All of the cars are covered with the automaker’s name and logo, and all advertising around the track is for Dodge cars and trucks.

Ford Motor’s Web site has gone even further by inviting visitors to lay the Escape Moon Rally game. If you successfully finish the race, which is both fun and easy to do, you are entered into a sweepstakes to win prizes, including a two-year lease on a Ford Escape XLT. As with Procter & Gamble’s game, players are encouraged to invite friends and family to play, and possibly win.

Statistics show that of the people who visit Ford’s site, 43% of them spend eight to 15 minutes playing the game, and that half of all visitors send the game to at least three people.

Toyota has an even more impressive result. In 2001, they advertised on MSN Game Zone via a racing game called Adrenaline. The average visitor played for 20 minutes, three to four times a month! Within three months, Toyota’s brand awareness went from No. 6 to No. 2.

Some companies are coordinating TV and print media advertising campaigns that direct viewers and readers to go online and play. Many are hosting sweepstakes to provide that extra incentive to take the time to visit and play.

There is usually a downside to every upside. One downside of these marketing techniques is that the subliminal nature of the ads could become very sophisticated over time, and parents will have a difficult time trying to monitor the type of advertising the kids are being exposed to. It will also be increasingly hard to tell what games (even purchased computer and video games) will have advertising in them.

With early success stories like the ones above, you can bet that we will see game-based advertising bring advertising revenue back to the Web in a big way. The keys to keeping this new advertising medium going are great games that are fun to play and preventing the advertising component from becoming annoying. Most likely, the advertising component will blend into, and/or become part of, the actual game.

_______________________

About the Author: Daniel Burrus is considered one of the world’s leading technology forecaster and business strategists, and is the author of the best selling book Technotrends. He produces a number of audio and video learning systems and is the publisher of the Technotrends Newsletter.