Transcript Town Hall - Interactive Advertising Bureau

IAB Game Advertising Committee:
Let the Games Begin
At Least Once a Week…
89%
Of Americans
watch primetime
TV
Of Americans
watch a movie in a
theater
Of Americans play
some kind of a
computer/
videogame
4%
58%
Source: Frank N. Magid Associates, Inc.
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…And Growing
% Of U.S. Persons with a Console in their Home
Q3 2004 - Q3 2007
100%
90%
Console Penetration
80%
70%
53%
60%
50%
46%
40%
30%
20%
10%
0%
Q3
2004
Q4
2004
Q1
2005
Q2
2005
Q3
2005
Q4
2005
Q1
2006
Q2
2006
Q3
2006
Q4
2006
Q1
2007
Q2
2007
Q3
2007
Quarter
Source: Nielsen Media Research – National People Meter Sample
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Console Gaming Has a Mainstream Audience
Percentage of US Persons Who Used A Video Game Console in the Past Year
100%
80%
60%
40%
Household: 37%
Persons
Males
Females
20%
0%
6 to 11
12 to 17 18 to 24 25 to 34 35 to 44 45 to 54 55 to 64
65+
Source: Nielsen NPOWER, data reflects September 2006-2007 time period, 6 minute qualifier used
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In the Game Universe, There Are Distinct Platforms & Experiences
Different platforms and genres appeal to different audiences.
Console Core
Gamer^
PC/Online
Core Gamer^^
PC/Online
Casual Gamer*
Mobile Gamer*
• Gender - 75% Male
25% Female
• Gender - 59% Male
41% Female
• Gender - 50% Male
50% Female
• Gender - 36% Male
64% Female
• Median Age – 19 (18
Males, 21 Females)
• Average Age – 30
• Median Age – 36
• Median. Age – 27
• 44% of casual gamers
download games from
game oriented websites
• 17% of mobile phone
gamers have
downloaded additional
games
^Source: Nielsen NPOWER, data reflects September 2007 time period
^^Source: Nielsen Games Active Gamer Report 2006
*Source: Entertainment Software Association, Yankee Group – 2004 USVG Survey
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Consoles Aren’t Just for Boys:
Females Account for about a Quarter of U.S. Usage
Average Console Audience Composition by Gender
Q2 2007
Females
23.7%
Males
76.3%
Source: Nielsen GamePlay Metrics
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…Consoles Aren’t Just For Kids Either,
Adults Account for About Half of All U.S. Usage
Average Console Audience Composition by Age
Q2 2007
55+
2-5
1.7%
6.2%
25-54
27.2%
18-24
19.3%
6-11
22.3%
12-17
23.3%
Source: Nielsen GamePlay Metrics
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Though Gaming Delivers a Diverse Audience,
20% of Gamers Account for Three-Quarters of All the Usage
Average Console Audience Composition by Quintile
Q2 2007
Light
1.7%
Lightest
0.3%
Heaviest
74.1%
Moderate
5.9%
Heavy
18.1%
Source: Nielsen GamePlay Metrics
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The Popularity of Connected Gaming on
Par with Media Culture
Total Monthly Online Users by Category
The Gaming category reaches
majority of web users
160,000
140,000
120,000
 83MM people went to a gaming
site in July
 48% of online population
100,000
80,000
60,000
40,000
20,000
0
Total Monthly Minutes (billions)
20,000
18,000
16,000
14,000
Games tops the number of
monthly minutes users
spend by category
12,000
10,000
8,000
6,000
4,000
2,000
0
Source: Media Metrix, July 2006
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Factor In Time Spent
• Active Gamers spend on
average 11 hours per week
playing online
Q. Average Hours Playing Online Per Week (in hours)
13
• Active Gamers males spend
12 hours per week playing
online
13
12
11
10
9
9
8
• Not surprisingly, teens are
tied for the most time spent
playing online per week (13
hours)
• Active Gamers 45+ match
teens with their time spent
playing online per week (13
hours)
Total
Male Female 13-17 18-24
25-34
35-44
45+
Source: Nielsen Interactive Entertainment 2006 Active Gamer Benchmark Study; Base: Active Gamers who say they play online
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Time Spent Per Session
Average Session Minutes by Console Model
July 2007
80
70
70
68
65
62
62
61
60
53
50
40
30
20
10
0
Average
Xbox 360
Playstation 3
Playstation 2
Xbox
Wii
GameCube
Source: Nielsen GamePlay Metrics
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The Opportunity
“Pervasive product integration in video games can be highly
effective, leading gamers to not only recall featured brands
but also recommend them to friends or rate them highly.”
Nielson Games
November 2005
100%
69%
64%
50%
37%
Average Ad
Rating
Average
Brand
Familiarity
Average
Brand Rating
Nielsen Entertainment for Massive Inc., January 2007. Data from surveys with 600+ gamers in North America who played Need For Speed
Carbon on Xbox 360 & PC platforms. Game published by Electronic Arts.
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Games are Poised for Significant Growth
as an Advertising Medium.
The introduction of dynamic ad placement and reporting capabilities online are helping
brands connect with a diverse audience in the in-game space.
Video Game Advertising Revenue
(in Millions)
$312.2
$259.9
$203.5
$562.5
$153.3
$10.0
$432.7
$302.9
$113.7
$173.1
$69.0
$83.6
$34.0
$71.9
2003
2004
2005
2006
In-Game Advertising
2007
2008
2009
Advergames
Source: Yankee Group, 2005
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Engagement Is Driving a New Advertising Model
From
To
Put content wherever
they are
Provide content that finds them
Product/Brand Information
Entertainment Value
Brand to consumer
Consumer to consumer,
about brand
Brand-generated
Brand and consumer-generated
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I + (E + E) – I = E Factor
Information + (Entertainment + Engagement) – Intrusiveness
= Effectiveness
Hairong Li
Michigan State University
15
Game Platforms & Experiences
Experiences
PC/Online
Casual
Core /
Enthusiast
-Polar Bowler
-Bejeweled
-Diner Dash
-World of Warcraft
-Runescape
-The Sims
Platforms
Console
-Pac Man
-Geometry Wars
-Wii Sports
-Halo
-Grand Theft Auto
-Madden Football
-Zelda
Mobile
-BlackBerry : Brick Blaster
-Tetris
-Nintendogs
-Splinter Cell
-NBA 2007
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Video Game Advertising Formats
Advertising Format
Description
Advergame
Custom-made games specifically designed around a product or service (e.g.
Burger King- Sneak King)
Dynamic In-game
Advertising elements within a connected game itself, that can be dynamically
changed depending on location, day of week and time of day (e.g. vending
machine fonts, billboards and posters)
Inter-Level
Display or digital video ads shown during natural breaks in gameplay, such as
between levels (“”inter-level”) or between rounds of play.
Game Skinning
Includes game sponsorship of display units around the game, and/or custom
branding integration into the game itself
Post-Game
Ads shown following completion of the game
Pre-Game
Display or digital video advertisements shown before gameplay begins or as the
game is loading
Product Placement
Integrated brand messaging, sponsorship and/or products into a game (e.g.,
beverages, mobile phones and cars)
Sponsorships
Advertiser owns 100% share-of-voice in and around an existing game, such as
sponsorship of a tournament, zone (level), or session of gameplay. Advertiser
might also sponsor the release of new exclusive content associated with a game.
Static In-game
Advertising elements within a game that may not be changed. These may reside
within game play itself or on menus, leader boards, etc. This type of ad format is
also referred to as “hard-coded” advertising.
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Dynamic In-game Advertising
Source: Massive, Wild Tangent
18
Dynamic In-game Advertising
Gamer sees billboard with “Click to Unveil”
prompt, encouraging gamer interaction with the
brand message.
Gamer clicks on billboard which unveils additional
imagery.
Source: Massive
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Dynamic In-game Advertising
An activity in the game…
…triggers an email to the player*
*requires player opt-in
…promoting trial of the product (in this case).
Source: AdScape
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Product Placement
Source: Ubisoft
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Product Placement
Source: IGA Worldwide
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Advergames
Source: Skyworks
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Sponsorship Advertising
Source: Skyworks
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Inter-level Advertising
Source: Electronic Arts (EA)
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Inter-level Advertising + Dynamic In-game
Dynamic In-Game
Inter-level
Source: IGA Worldwide
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Pre-Game Advertising
Source: Electronic Arts (EA)
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Sponsorship & Game Load
Source: WildTangent
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Sponsorship (Branded Game Channels)
Source: WildTangent
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Advergame
Source: WildTangent
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Integrated In-Game and Item Sponsorship
Source: Eyeblaster
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IAB Games Committee
Mission
Articulate the value of gaming as an advertising platform.
Goals
Industry creative ad unit and measurement guidelines to simplify the process
associated with buying, planning and developing online game advertising
Educate key industry stakeholders on the value of advertising-based gaming
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IAB Games Committee
Adtegrity
Advanstar Communications, Inc.
Advertising.com
Agency.com
Akamai
AMC Group Online Media Services
AOL
Atlas DMT
AtomShockwave Corp.
CNET Networks, Inc.
Comcast Corporation
comScore
Deloitte & Touche, LLP
Double Fusion, Inc.
Dynamic Logic
Electronic Arts
Exent Technologies Ltd.
Eyeblaster
Google, Inc.
IGA Partners Worldwide
IGN Entertainment
Ignited
Internet Broadcasting Systems
Jogo Media Inc.
Leapfrog Online
M:Metrics
Martha Stewart Living Omnimedia
Massive Incorporated
MSN (Microsoft Digital Advertising
Solutions)
PerfSpot.com
PointRoll
Range Online Media, Inc.
RealNetworks, Inc.
Skyworks Technologies
Traffic Marketplace
True North, Inc.
UGO
Univision Online
Viewpoint
Vizi
WeatherBug
WebMD
Wild Tangent
World Wrestling Entertainment, Inc.
Zango
Ziff Davis Media, Inc.
Thank you!
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