Archived from groups: alt.games.video.sony-playstation2 (More info?)
Video games to get ads; makers to get richer
THEY'LL BE IN SCENERY TO AVOID BEING ANNOYING
By Dean Takahashi
Mercury News
Video games have provided one of the last refuges from the ubiquitous
advertising that hits consumers from every direction. But that's
beginning to change, thanks to an innovative start-up that puts ads
into games.
Massive, based in New York, has figured out how to insert
advertisements into the background scenery of video games that run on
both PC and game consoles. With its custom technology, the company can
insert advertisements into billboards, storefronts and other parts of
the scenery in a video game. It can even change the ads on a periodic
basis.
More than a dozen big advertisers and 10 video game publishers have
agreed to participate in Massive's advertising network, which has a
business model resembling product placement in movies, said Nicholas
Longano, chief marketing officer at Massive.
The added revenue from the ads could be a bounty for game developers
and publishers. Massive estimates that it can add $1 or $2 net profit
to the publisher's pocket for a $50 game. Depending on the type of
game, a publisher's profit is usually only $6 to $8 per game, so the
new source of ad revenue could be a big deal for game companies.
Longano says that this secondary revenue stream will help put video
games on a more even footing with other kinds of entertainment.
Movies, for instance, generate 24 percent of their revenue from the
box office receipts. But they generate far more income through DVD
sales, rentals, pay-per-view, network TV syndication and cable TV
syndication.
``Video games are the only media without a secondary revenue stream,''
he said.
More at:
http://www.mercurynews.com/mld/mercurynews/business/11364926.htm
Video games to get ads; makers to get richer
THEY'LL BE IN SCENERY TO AVOID BEING ANNOYING
By Dean Takahashi
Mercury News
Video games have provided one of the last refuges from the ubiquitous
advertising that hits consumers from every direction. But that's
beginning to change, thanks to an innovative start-up that puts ads
into games.
Massive, based in New York, has figured out how to insert
advertisements into the background scenery of video games that run on
both PC and game consoles. With its custom technology, the company can
insert advertisements into billboards, storefronts and other parts of
the scenery in a video game. It can even change the ads on a periodic
basis.
More than a dozen big advertisers and 10 video game publishers have
agreed to participate in Massive's advertising network, which has a
business model resembling product placement in movies, said Nicholas
Longano, chief marketing officer at Massive.
The added revenue from the ads could be a bounty for game developers
and publishers. Massive estimates that it can add $1 or $2 net profit
to the publisher's pocket for a $50 game. Depending on the type of
game, a publisher's profit is usually only $6 to $8 per game, so the
new source of ad revenue could be a big deal for game companies.
Longano says that this secondary revenue stream will help put video
games on a more even footing with other kinds of entertainment.
Movies, for instance, generate 24 percent of their revenue from the
box office receipts. But they generate far more income through DVD
sales, rentals, pay-per-view, network TV syndication and cable TV
syndication.
``Video games are the only media without a secondary revenue stream,''
he said.
More at:
http://www.mercurynews.com/mld/mercurynews/business/11364926.htm
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