Undaunted by the fact that most 18- to 34-year-old male consumers TiVo through commercials and click off intrusive online ads, corporations are plowing ahead with novel interactive strategies to bring their advertising messages to gamers.
Anyone who buys Electronic Arts' NBA Live 07 game on Xbox 360 or PlayStation 3 (when that console is released in November) will be able to unlock a host of new items and features in the game from Adidas Basketball.
In addition to the over 100 Adidas-specific elements hidden in the next-generation game, to be unlocked over time through simple codes distributed through retail, online and real-world NBA events like the All-Star Weekend and NBA Finals, Adidas will provide single-use unique codes that message its new marketing slogan, "It Takes 5IVE."
Gamers can unlock five NBA players: Tim Duncan, Tracy McGrady, Kevin Garnett, Gilbert Arenas and Chauncey Billups. These five players, who wear custom 5IVE uniforms, can take on any other five players in the game in an exclusive arena that reinforces Adidas' idea of 5IVE with details and courtside signage.
"We worked very closely with EA over the past year to implement this into the game," said Ryan Morlan, global communications manager for Adidas Basketball. "It shows these guys as a unit and shows that they believe in something bigger. It's tied into a much larger broad marketing campaign that you'll see with these five athletes across broadcast, print and interactive."
"Much more than 'free goodies,' the level of the interaction between Adidas and EA Sports has helped to create a dynamic and unique gaming experience," said Chip Lange, vice president of EA Sports Nation Online. "Through this partnership, we have designed an experience that not only creates consumer excitement for the game, but also the Adidas and EA brands."
"We know how inherent gaming is to kids today and that the ability to go deeper and be better in this gaming environment is very important for gamers," said Tara Moss, eMarketing Manager for Adidas America.
As part of a recent Game Metrix study, comScore surveyed both the heavy and medium gamer segments regarding their attitudes about in-game advertising. Thirty-seven percent of heavy gamers (those who play games at least 16 hours a week) agreed that featuring actual products or companies in games make the games feel more realistic. About one-third (27 percent) of medium gamers (those who played less than 11 hours per week) agreed that in-game ads can add to a game's realism.
EA Sports partnered with Burger King on Fight Night Round 3, which is available for all systems and ships for PlayStation 3 in November. EA Sports' Chicago studio created an unlockable boxer named Rey Mo.
"Not only do players discover Rey Mo in the game, but if they win a Burger King-sponsored event in the game with their own fighter, they unlock the King himself who joins your entourage as they enter the ring," said Lange.
Another current example of rewarding players with a brand occurs in Atari's Xbox 360 game, Test Drive Unlimited. Set in Oahu, Hawaii, gamers can enter Ben Sherman stores and buy authentic clothing for their in-game avatar.
"With games we can inform the company the size of the ad on screen, exactly how long it is was seen for and even from what angle it was seen," said Justin Townsend, CEO of in-game advertising company IGA Worldwide, "thus allowing brands visibility and accountability for every ad dollar spent. Unlike other mediums such as TV, the brands only pay for what is seen."
Acclaim is about to take product placement to another level with its free, ad-supported massively multiplayer online games next year. Game industry veteran Dave Perry, who's directing 2Moons for Acclaim and creating several additional MMO games, wants to open up the door for corporate-sponsored micro transactions.
"When you buy a virtual item, we're going to do a search to see if any advertiser in real-time is willing to pick up the cost of that item," said Perry. "If you want this sword, it would put up a message and ask if you would like Coca-Cola to buy this item for you."
Perry said this business model makes the customer happy because they get the item for free and the corporate sponsor is happy because they've had a positive exchange with the consumer. Free games will open up MMOs to a wider audience, which, in turn, will offer a larger array of consumers to build relationships with these advertisers.
In-game advertising will only grow over the coming years as all three next-generation consoles offer online capabilities. Video games hold a captive audience for hundreds of hours, which is a feat no other form of entertainment can achieve. As long as companies come up with innovative new ways to converge brands with gameplay, there should be a seamless, rather than intrusive, relationship between ads and consumers.