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 Gameguru Mania News - Apr,18 2005 -  
Advertising in Games Forum report - briefly
(hx) 04:00 PM CEST - Apr,18 2005 - Post a comment / read (2)
The Game Initiative announced today that 250 executives from advertising agencies, game developers and publishers participated in the first annual Advertising in Games Forum on April 14, 2005 in New York City. The audience consisted primarily of advertising agency executives seeking to understand the market opportunities and expectations. A number of key facts, figures and estimates were provided to the audience by leading industry experts at the Advertising In Games Forum. Highlights include:
- The Yankee Group forecasted advertising in games is expected to rise to $800 million in 2009 from nearly $120 million in 2004.

- $266 Million, or more than one-third of advertising in games in 2009, will come from "advergaming," when advertisers create a game around a product rather than place their brands within a well-known title, according to Yankee Group senior analyst Mike Goodman at the Advertising In Games Forum.

- Mitch Davis, chief executive of video game ad network Massive Inc., told the audience video game advertising would top $1 billion in the United States by 2010, and approach $2.5 billion worldwide.

- There are 100 million game capable cell phones are currently in the marketplace. 65% of the population owns a cell phone. And the turn over or replacement rate of cell phones is every 16 months, reported Anita Frazier, Entertainment Industry Analyst, NPD Group, at the Advertising In Games Forum. Every cell phone being sold on the market today is game capable. So within 16 months all cell phones in the marketplace should be game capable.

- The top selling 2004 game titles according to the NPD Group:  1. Grand Theft Auto San Andreas ? 5.5 million sold since launch, 2. Halo 2 on X box ? 4.5 million units sold since launch, 3. Madden NFL 2004 on PS 2 ? 3.5 million units sold since launch, 4. ESPN NFL 2K5 ?1.6 million units sold since launch, 5. Need for Speed Underground 2 ?1.7 million units since launch

 - Top selling PC title of 2004: Sims 2 with 750,000 units sold., reported NPD Group at the Advertising In Games Forum

last 10 comments:
Ozieo(04:26 PM CEST - Apr,18 2005 )
Keep your dirty fingers away from our games, you moneysick bastards !

spidey(05:27 PM CEST - Apr,18 2005 )
I don't know whats worse, EA locking franchises by purchasing exclusive licenses that only hurt the gamers by pushing out the competition or having companies custom ordering games centered around their products. Americas Army being one shining example. Fun game but damn do you have to swallow the whole propaganda package.

The game development market has been in trouble for quite some time with development costs on a steep rise (see note 1). If it's Coca Cola or EA holding the hatchett over a games life or death I'd probably prefer Coca Cola (see note 2). Atleast they ain't as likely to pull the plug thinking the game hasn't enough selling capablity. They're in it for the publicity, not the sales revenue.

Then again whats new? We've had movie franchise games for ages now, and racing games love to title themselves on famous car brands. In the end it all breaks down to wheter or not the game is fun, don't matter if its free in a box of kellogs, if I don't enjoy it it's gone.

*1)
With todays techno fetish in gaming, the development time are being pressed hard. 3rd party engines (like Source & Unreal3) are licensed for insane money to rapidly utilize the new technology.

*2)
The costs nemntioned are hard to meet for a small game studio. Either it needs to find private investors with deep pockets or turn to the big publishers for a handout by which they sell their soul (okay, not really :P).

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