Inserting advertisements into video games holds much promise

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Jun 7th 2007
From The Economist print edition

Inserting advertisements into video games holds much promise

 Welcome to the future

THEY are known to television executives as the “Lost Boys”—the generation of video-gaming young men who are watching less television and, thanks to ad-skipping technologies such as TiVo, even fewer advertisements. The obvious response is to start putting advertisements into games instead, by incorporating billboards into the game environment, for example. But incorporating static advertisements into games is unsatisfactory. Now that most PCs and a growing number of games consoles are connected to the internet, however, it is possible to update advertisements when required. As a result, static in-game advertisements are now giving way to dynamic adverts, which accounted for $26m of the $76m spent on in-game advertising last year, and will account for 55% of the $182m spent this year, says the Yankee Group, a consultancy.

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