Video Game Ad Spend to Reach $1.9 Billion by 2011
According to a recent study released by eMarketer, worldwide video game advertising spending will grow at a compound annual growth rate of almost 23% to reach $1.938 billion by 2011. This figure was $692 million in 2006, and is expected to reach $1.003 billion after 2007 is said and done.
The U.S. alone spent $346 million in video game advertising in 2006, and is expected to spend $502 million this year. By 2011, the U.S. is expected to spend $969 million in video game advertising, according to eMarketer.
Video games created as marketing vehicles, otherwise known as "advergames," are anticipated to be a significant portion of these figures. Advergaming in the U.S. saw $164 million of advertising spending dollars in 2006, and is predicted to reach $344 million by 2011.
The report lists key factors for this impending growth:
· "Growth of the video game industry overall
· Increasing realization among advertisers that games are a viable way to reach their targets
· Broadening of the gaming demographic to include older gamers and women
· More games that favor online advertising, such as casual games, online games, massively multiplayer online games (MMOGs) and third-generation console games with an online connectivity
· Proven success of the advergaming model"
Google/Adscape and Microsoft/Massive will look to become the shiny faces of this industry, as they look to heat things up in the video game arena.
Source:
http://www.emarketer.com/Article.aspx?1004739
