NBC UNI'S MOVE INTO VID GAME ADS AUGURS TREND
When Microsoft bought the in-game advertising network Massive in 2006, it was said that the purchase validated the business of selling ads inside video games. But Microsoft was already in the games business, of course, and knew full well the value of in-game ads.What is far more stunning is that this last summer the venerable NBC Universal invested in Massive's competitor, IGA Worldwide, and it has just agreed to start selling ads into IGA's inventory of video games. That makes NBC Uni the first non-gaming media giant to join the fledgling in-game ad business. But it certainly won't be the last, say industry observers.
"This is definitely important for the in-game ad industry," says Michael Cai, director of broadband and gaming at Dallas-based research firm Parks Associates. "At least the major guys are now paying attention and are taking some action instead of just going to conferences."
While only about $54 million was spent on ads (both static and dynamic) within PC, console, and mobile games in 2006, that rose by 66% to $90 million in 2007 and will climb to $150 million in 2008. Within five years, it is expected to top $804 million, according to Parks Associates data.
In July, General Electric/NBC Uni's investment fund, Peacock Equity, was the lead investor, enabling IGA to raise $25 million in Series B funding. Last month, NBC Uni's digital media division signed a pact allowing the NBC sales team to sell ads into IGA's inventory of retail PC and console games, currently numbering 50 but expected to reach 200 within the next two years.
"What we've done is carve out a portion of our ad inventory for NBC to sell directly," explains Justin Townsend, CEO of Manhattan-based IGA. "That relationship enables us to bring all the marketing power of the country's largest TV network to bear and, of course, all the current relationships that it has with existing brands and agencies as well."
IGA says it has already served over 150 ad campaigns, including such leading brands as Coca-Cola, Burger King, McDonalds, Wendy's, Cingular, Nokia, and several of the large movie studios. The agreement with NBC Uni is its first reseller deal aimed at augmenting its direct sales force of 30 in the U.S. and Europe.
What the agreement does for NBC Uni, says Townsend, is to give its advertisers access to the 100 million U.S. gamers who are mostly male and, at an average age of 29, an eagerly sought-after demographic.
"Our advertisers tell us they want to extend their sponsorship beyond our TV shows," explains Nick Johnson, vp at NBC Universal Digital Media advertising sales. "So, in addition to sponsoring, say, "Heroes" on-air, we have been taking them to our "Heroes" Web site and online video and to wireless. And now the IGA relationship puts us into a new distribution footprint -- the gaming environment -- which is one that is growing very, very rapidly. A sponsor of 'Heroes' might be very interested in games in the science-fiction genre, for example. As we continue to explore more and more creative ways to extend our advertising relationships, we think the gaming environment is really a strong one for us."
He describes his sales team is being in the early stages of setting up its games strategy and he isn't ready to discuss which brands he intends to target.
A big buzzword these days is "360-degree ad campaigns," which refer to advertisers who want to reach a certain demographic but find it difficult to do so through the traditional platforms.
"One thing that's important to a lot of advertisers is for the agencies to create innovative packages that include not only traditional media, but also some of the emerging media," says Cai. "That's because the advertisers don't necessarily understand all of the emerging media and how they position on the ad spectrum. So they're looking for agencies and strong ad sales teams at companies like NBC for some of those recommendations."
Indeed, he adds, "the words coming out of NBC's mouth can sometimes be more powerful than from IGA's mouth."
Townsend has already seen the budgets being spent by brands on in-game ads increasing from $30,000-$40,000 per campaign about two years ago to as much as $600,000 per campaign. And Cai believes that the hesitancy on the part of advertisers to spend their money on in-game ads will contain to fade.
"At the moment, it's still new and not totally proven yet," Cai explains, "even though the in-game ad solution providers have done some research to validate the media and to prove that gamers spend many, many hours on their favorite games. Still, the advertisers don't really know how to leverage the media yet. I think that when companies like NBC start telling them that in-game ads actually work, advertisers are going to feel a lot more comfortable spending their money."
Salary negotiations are a dance. There are times when the sparks fly and you're making out with your dance partner right there on the dance floor. And, sadly, there are other times when you're stepping all over each other's feet.
>> Q&A: Opportunities For Developers In Virtually A Whole New Industry
The concept of "virtual worlds" is a familiar one inside the game's industry but is just now becoming familiar to businesses outside. They're just now catching onto how VWs can strengthen their communications externally with customers and business partners, and internally with employees. That means opportunities for VW-savvy developers looking for business -- or jobs -- outside of gaming.
>> Not Everyone Feels The Crunch
Game developers know certain things are inevitable -- software bugs that need exterminating, for example. And schedules that invariably lead to excruciating crunch times.
>> THE IMPORTANCE OF PROFESSIONAL REFERENCES
In today’s information age, it is not uncommon for companies to run background checks prior to extending an offer. Even more common (and almost the rule), hiring managers will want to speak with your previous supervisors and co-workers to assess your suitability for their position. Since a formal offer will most likely hinge on a successful reference check, keep the following points in mind so you don’t let that opportunity for career progression pass you by.
>> THE BUSINESS OF MMOGS: ARE SUBSCRIPTIONS PASSÉ?
While the majority of MMOGs in the U.S. still earn their keep by collecting monthly fees, the classic subscription business model is no longer a knee-jerk reaction for most domestic publishers of new massive-multiplayer online games.
>> INTEL GROWING VISUAL COMPUTING DEVELOPER COMMUNITY
Intel’s Visual Computing Developer Community has a newly redesigned Web site that the company is recommending as a really helpful destination for game builders seeking advice or anxious to share their expertise.
Last month, we discussed how, over the years, the team here at DAM has encountered job seekers of all flavors. And we focused on the top five mistakes made by job seekers.
>> Q&A: UNION PROVIDES OPPORTUNITIES FOR DEVELOPERS
LA-based Union Entertainment is a feature film and videogame talent management and production company that's been representing game development talent for years, helping them sell their own projects or securing work for hire projects. But not everyone is aware that Union occasionally synchs up with DAM to the benefit of developers and publishers alike.
>> QUALITY OF LIFE? DOES ANYONE STILL GIVE A DAMN?
It's been exactly 3-1/2 years since EA_Spouse -- née Erin Hoffman -- wrote her open letter to the games industry and focused a laser-like light on the oppressive working conditions that her fiancé and, by extension, the rest of the development community endured. "Quality of life" (QoL) became the buzzword du jour and unionization the hottest topic around studio water coolers.
>> Top 5 Mistakes Made by Job Seekers
Over the years, the team here at DAM has encountered job seekers of all flavors -- from the "timid, one-word answer" guy to the "you're lucky I've even agreed to talk to you" guy.
>> Q&A: SPARKPLAY READIES 'EARTH ETERNAL'
The success of the games industry has lead to a growing number of small studios forming with the help of venture-capital or private equity. One of those is San Francisco-based SparkPlay Media which is developing an unusual MMOG that is designed to use some of the more popular social networks as customer acquisition tools.
>> CASUAL GAMES LOOK TO AD-SUPPORTED 'TV MODEL'
Some may recall a time not so very long ago when it didn't cost a red cent to watch television. Advertisers funded everyone's home entertainment and the only price you paid to watch your favorite sitcom was having to sit through the commercials.
>> iPhone: Savior Of Gaming? Or Apple’s Marketing Mastery At Play?
On March 6, Apple’s 2.2-GB iPhone SDK was publicly released, complete with a Steve Jobs-fronted presentation detailing all the bells and whistles.
>> 'SIN CITY' VIDEO GAME GOES STRAIGHT TO THE SOURCE
Some films seem so perfect for converting to video games that one wonders why it never happened. Quentin Tarantino's "Kill Bill," for example.
>> 'IRON MAN,' 'HULK,' 'ALIEN' POWER SEGA'S REINVENTION
It's no mean feat powering up from being video game publisher No. 14 in 2004 to becoming the industry's sixth largest third-party publisher today. But Sega of America is tasting that success. Industry analysts credit its president and COO since 2005, Simon Jeffery, as the force behind the company's struggle to reinvent itself.
>> WHAT NEXT AFTER CARIBBEAN PIRATES? BRUCKHEIMER BETS ON VIDEO GAMES AND THE MIDDLE EAST
Given the current state of world affairs, Iran is probably not the most ideal setting for a family-friendly, big-screen blockbuster. But refer to it, instead, as "Persia" (its former name), set it back 2,500 years or so, and base it on a popular video game brand, and what have you got? Exactly the sort of creation producer Jerry Bruckheimer might envision as his next major project.
>> AND THE AWARD FOR BEST VIDEO GAME WRITING IS ...
[NOTE: This article was written in early February, before "Dead Head Fred" won the WGA award on Feb. 7th.]
Awards for the best video game writing? Isn't that an oxymoron? Aren't video games about jumping, shooting, running, shooting, and -- more shooting?
>> GDC 2008 & The State Of Independence
This year's GDC event at the San Francisco Moscone Center seemed to focus more on the little guys than the big boys, with indie and casual games like Fez and Crayon Physics Deluxe inspiring the specialist press moreso than your Gears Of Wars and your Street Fighters. (At least that's what they told me during after-show drinks).
>> Q&A: Boon Or Boondoggle: Tips For A Successful GDC
GDC season is upon us again. Time for booth duty, seminars, new gadgets, renewing acquaintances, meeting people, and parties galore.
>> WBIE On Developer Shopping Spree
When it comes to large media companies playing in the video games sector, the two most aggressive contenders are clearly Walt Disney Co. as No. 1 and Warner Bros. as No. 2. Both are spending a lot of money and moving quickly.
>> Q&A: From SONY To Startup
Best known for creating the “Twisted Metal” and “God Of War” series at Sony, David Jaffe is now co-founder and creative director at seven-month-old indie developer Eat Sleep Play. Why does anyone leave a cushy job after 14 years at Sony to become an indie? We took a few minutes to chat with David to get some answers.
>> Game Developers Expect Credit Where Credit Is Due
Imagine working on a blockbuster film for 2-1/2 years and then being left out of the movie's end credits. It's not likely to happen because union contracts dictate giving credit where credit is due.
>> NBC Uni's Move Into Vid Game Ads Augurs Trend
When Microsoft bought the in-game advertising network Massive in 2006, it was said that the purchase validated the business of selling ads inside video games. But Microsoft was already in the games business, of course, and knew full well the value of in-game ads..
