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The Bottom Line

1.0   Notes on Methodology

2.0   Game Advertising: an Overview

2.1 What is “Game Advertising”

2.2 Key Terminology Explained

3.0   Game Advertising: Industry Domain Analysis

3.1 An Overview of the Game Advertising Value Chain

3.2 Game Advertising Business Models

3.3 Key Constituents and Respective Industry Trends

3.3.1 Advertisers: Looking for the Lost Eyeballs

3.3.2 Ad Agencies: Path toward Digitization

3.3.3 Developers and Publishers: Business Model Diversification

3.3.4 Console Manufacturers: beyond Games

3.3.5 Online Gaming Portals: Solving the 98% Problem

3.3.6 Game Advertising Solution Providers: a Land Grab

3.4 Industry Drivers and Inhibitors

3.4.1 Key Drivers

The Growth of Online Gaming

The Popularity of Casual Gaming

Connected Game Consoles

3.4.2 Key Inhibitors

The Lack of a “Game Advertising Economy”

The Learning Curve

Platform Fragmentation

Lack of Industry Standard

Lack of Third-Party Auditing

4.0   Game Advertising: Methods and Solutions

4.1 Established Game Advertising Models

4.1.1 Advergames

4.1.2 Web Advertising

4.1.3 Static Insertion

4.2 The New Darling: Dynamic In-Game Advertising

4.2.1 DIGA in Retail Console and PC games

4.2.2 DIGA in Catalog Games

4.2.3 DIGA in Casual Games

4.3 Alternative Methods

4.3.1 Virtual World

4.3.2 Sponsored Game Play

4.3.3 Game Tournament

4.4 Comparing Different Models

5.0   Zooming in on Dynamic In-Game Advertising

5.1 A Look under the Hood

5.1.1 Key Technology Components

5.1.2 Target Audience

5.1.3 Target Platforms

5.1.4 Ad Formats

5.1.5 Inventory Availability

5.1.6 Revenue Share

5.1.7 Ad-buy process

5.2 Competitive Analysis of In-Game Advertising Solution Providers

5.3 Moving beyond Impression

5.3.1 Product Placement and Plot Integration

5.3.2 Addressable and Transaction-based Advertising

5.4 Benefit for Game Publishers and Developers

5.5 The Importance of a Full-Service Approach

5.6 What Will the “Big Three” Do?

5.7 Mobile Game Advertising

6.0   Market Forecasts

6.1 Forecast Methodology

6.2 Detailed Forecast

7.0   Market Implications and Key Recommendations

Resource Book

1.0   Shifting Demographics of Gamers

2.0   Segmentation of Gamers

3.0   Adoption of Online Gaming

3.1 Growth of Online Gaming

3.2 Popular Online Gaming Services

3.3 A Comparison of Online Gamers

4.0 Analysis of Gamer Behaviors

4.1 Average Playtime and Session Length by Platform

4.2 Demographics of Gamers on Different Platforms

4.3 Social Gaming Behaviors

4.4 Online vs. Offline PC Gaming

4.5 Gaming Expenditure

4.6 Analysis of Game Genres

4.6.1 Popular Genres by Demographics

4.6.2 Gaming Hours of Various Genres on PC and Console

4.7 New vs. Old Games

5.0   Gamers’ Perceptions of Game Advertising

5.1 General Perceptions

5.2 Price Points of Ad-Supported Gaming Services & Add-on Features

5.3 Desired Discounts & Preferred Ad Formats

6.0 Profiles of In-Game Ad Networks and Consultancies

6.1 Adscape Media (Google)

6.2 Amobee Media Systems

6.3 Double Fusion

6.4 Engage In-Game Advertising

6.5 Greystripe, Inc.

6.6 IGA Worldwide

6.7 Massive Inc. (Microsoft)

6.8 InGameAd Interactive (China)

7.0   Profiles of Advertising Agencies

7.1 Ogilvy & Mather

7.2 Play/Denuo

8.0 Profiles of Game Portals & Publishers/Developers

8.1 AOL Games

8.2 Arkadium Games

8.3 Boonty S.A.

8.4 Fuel Industries

8.5 NeoEdge Networks

8.6 RealNetworks

8.7 Shockwave (Atoms Entertainment)

8.8 Skyworks Technologies

8.9 WildTangent

8.10 Yahoo! Games

9.0 Profiles of Console Makers

9.1 Microsoft Corporation

9.2 Nintendo Co.

9.3 Sony Corporation

10.0 Profiles of Game Ad Technology Providers

10.1  Eyeblaster

10.2  Exent Technologies

10.3     Trymedia (Macrovision)

The Bottom Line

An Overview of the Game Advertising Value Chain

Game Advertising Business Models

Daily Hours Spent on TV, Web, and Gaming (among All Internet Users, 18-34 Male, and 35-54 Female)

Ad Spending per Household/Month: by Media

Percentage of Budget Planned for Various Forms of Emerging Media

Game Consoles Not Just About Games

Number of PC Gaming Hours per Month: Online vs. Offline (Q2/06)

Casual Game Genres Played by Gender and Age

Number of Xbox Live! Subscribers

How Is an Impression Counted

Summary of Advergames Developers

Top Ten Casual Game Portals (April 2007)

Time Spent on Playing New. vs. Old Games

Key Providers of Virtual World Marketing Solutions

Summary of Leading Virtual Worlds

Major Game Tournaments

The Game Advertising Continuum: a Comparison

DIGA Technology Illustration

Game Genres Played by Gender and Age: FPS, Sports, Action/Adventure, and Driving

Popular Games on Xbox/Xbox 360 and PC

How Is Revenue Shared

DIGA Solution Providers: a Detailed Comparison

Breaking Down the Cost of a Console Game

Full-Service Shop Approach

The Six Pillars of Sony PlayStation Network

Mobile Game Advertising Solution Providers

U.S. Forecast of Total Game Advertising Revenue (2006-2012)

Detailed Breakdown of Forecast Numbers

Comparison of CAGR by Type of Game Advertising (2006-2012)

 

Resource Book

Trends in PC Gamer Demographics 2004-2007

Trends in Console Gamer Demographics 2006-2007 by Age & Gender

Trends in Online Gamer Demographics 2004-2007 by Age & Gender

Trends in Console Gamer Demographics 2006-2007 by Education

Trends in Online Gamer Demographics 2004-2007 by Education

Percentage of Various Gamer Groups

Estimated Number of Households with Gamers from Different Segments

Ranking of Motivation, Time, and Money Spent

Retail Gaming Revenue by Gamer Groups

Percentage of Frequent Online Gamers (At Least Weekly)

Online Gaming Services

Using Online Gaming Services

Popular Online Multiplayer Games

Popular Online Multiplayer Games: by Age & Gender

Online Game Spenders by Gender

Online Game Spenders by Age

Mean Hours Spent on Gaming Device

Average Game Session Length

Gaming Time Allocation by Platform: Male vs. Female

Number of PC Gaming Sessions per Month: by Age and Gender

Number of Console Gaming Sessions per Month: by Age and Gender

Number of Gaming Sessions on a Mobile Phone: by Age and Gender

How Do Different Gamer Groups Allocate Gaming Time

Social Gaming Habits of Teens

Social Gaming Habits of Adults

Gaming with Child

Number of PC Gaming Sessions per Month: Online vs. Offline

Number of PC Gaming Hours per Month: Online vs. Offline by Age &

PC Gaming Session Length per Month: Online vs. Offline

PC Gaming Session Length per Month Online vs. Offline

Gaming Budget Allocation

Monthly Expenditure on Gaming

PC Gaming Under-monetized Compared to Console Gaming

Monthly Expenditure on Computer Games by Age and Gender

Monthly Expenditure on Console Games by Age and Gender

Monthly Expenditure on Online Games

Types of Games Played Personally

Casual Game Genres Played by Gender & Age

Game Genres Played by Gender & Age: Kids, Dancing/Singing

Game Genres Played by Gender & Age: FPS/Sports/Action/Driving

Game Genres Played by Gender & Age: RPG, Simulation, Strategy

Game Genres Played by Gender & Age: Advergaming

Average Number of Hours Playing PC Games

Average Number of Hours Playing Console Games

Time Spent on Playing New vs. Old Games

Average Time Spent Playing New vs. Old Games by Age

Average Time Spent Playing New vs. Old Games by Gender

Average Time Spent Playing New vs. Old Games by Segment

Perception of In-Game Advertising

Power Gamers Have Strong Opinions about Game Advertising

Perception of In-Game Ads Always Having Negative Impacts: by Gender and

Opinion about Seeing In-Game Ads to Win Prizes: by Gender and Age

Opinion about Seeing In-Game Ads if it Helps Reduce Cost

Opinion about Seeing In-Game Ads if it Helps Enhance Game Play

Interest in Subscribing to a Game Service Featuring in-Game Ads at Various Price Points

Price Sensitivity toward Game Services with Ads

Appeal of Free Ad-Supported Gaming Service

Interest in Games Featuring In-Game Ads and Special Features

Interest in Extra Features in a Game with In-Game Ads: Gender Difference

Desired Discount for Games with In-Game Ads

Discount Expected for Games with Ads: by Age and Gender

Perception of Different Types of Ad Insertion

Least Intrusive Approach of Ad Insertion: by Age and Gender

Double Fusion Publisher Partners and Game Titles

Double Fusion Milestones

Engage Milestones

Greystripe Milestones

IGA Worldwide Publisher Partners and Game Titles

IGA Worldwide Milestones

Massive Milestones

Massive Publisher Partners and Advertisers

Arkadium Casual Game Publisher Partners and Selected Titles

Arkadium Milestones

Boonty Milestones

Fuel Industries’ Casual Game Publisher Partners and Selected Titles

Neoedge Casual Game Publisher Partners and Selected Titles

Neoedge Milestones

Real Networks Milestones

Shockwave Milestones

Skyworks Milestones

WildTangent Milestones

Yahoo! Games Milestones

Xbox and Xbox 360 Units Sold

Number of Xbox Live! Subscribers

Microsoft Game Advertising Platforms and Divisions

Nintendo GameCube Units Sold Worldwide

Nintendo Wii Units Sold Worldwide

PlayStation 2 Units Shipped Worldwide

PlayStation 3 Units Shipped Worldwide

Eyeblaster Milestones

Exent Publisher Partner and Game Titles

Exent Milestones

Trymedia Milestones

Publish Date: 2Q 2007

Pages: 190

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Authored By:
Parks Associates - About Parks Associates

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Executive Editor: Tricia Parks
Published by Parks Associates

© June 2007 Parks Associates
Dallas, Texas 75230

All rights reserved.  No part of this book may be reproduced, in any form or by any means, without permission in writing from the publisher.

Printed in the United States of America. 

Disclaimer
Parks Associates has made every reasonable effort to ensure that all information in this report is correct.  We assume no responsibility for any inadvertent errors.