Video Game Advertising Persuades Players: Study

Advertisements in video games can play a major factor in whether players buy products or recommend them to friends, a new Nielsen Entertainment study found.

The study, released Monday from a joint project between Nielsen Entertainment and game publisher Activision, found that pervasiveness and brand integration in games helps persuade players to change their opinions of a brand and/or recommend it to others.

Nielsen’s study surveyed 1,350 male gamers 13 to 44 using four video games—MTX Motortrax, Tony Hawk’s Underground 2, Need for Speed Underground 2 and NHL 2K6. Nielsen divided participants into four groups that played video games with ads and two groups that played video games without in-game advertising.

The study found that the majority of gamers who recalled a product in a game felt it was relevant to the game. In addition, more gamers changed their opinion of a product positively after playing the game, the study found.

Players are more open to in-game advertising and claimed that ads increased their enjoyment of the game, the study found. When gamers remembered a product or ad in the game, most said the product was a good “fit,” according to the study.

The Activision/Nielsen Entertainment study sought to determine the level of impact of in-game brand integration compared to traditional advertising and product placement in other media. The study established a new standard to assess in-game ads on levels of integration:

  • Unique Object and Game Elements— brand integration that incorporates in-game interstitials, video footage, audio cues and branded storyline elements that serve as goals of the game.
  • Brand Presence—, banners, bus shelter signs, hanging signs and 3D objects, including beverage machines, storefronts, buses with signage and blimps.

“As this study shows, video games are a powerful ad delivery medium,” said Activision CEO and Chairman Robert A. Kotick in a statement. “But the challenge for the industry has been to develop a pervasive unit of measurement that will enable advertisers to accurately gauge the effectiveness of in-game ads. With this research, we have taken a major step in that direction.”

“Video games provide a relevant context for gamers to virtually experience products,” added Michael Dowling, general manager of Nielsen Interactive Entertainment, a division of Nielsen Entertainment, in a statement. “This unique unit of exposure serves to reinforce and enhance a brand’s key selling proposition. Moreover, video games can provide actionable feedback to advertisers.”

Previous studies have shown that static ads (think billboards) in video games can also boost brand awareness similar to that of a 30-second TV spot.

[Editor’s note: For more on this subject, look for the February 2006 cover story of PROMO magazine.]

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