Video Games, Ads, and Nielsen
Sony’s PlayStation 3 is set to release in North America on November 17, in Japan on November 11, and in Europe during March of 2007. This is good news not only for gamers who are drooling over the highly anticipated gaming console, but for advertisers looking to get a better grip of this relatively new realm.
Microsoft’s Xbox 360 has been successful since its U.S. release on November 22, 2005, and is expected to reach 10 million units sold in the fourth quarter of 2006. The major hindrance that has led to muted interest in its advertising potential is the fact that Xbox 360 users who want to play online will typically have to sign up for a Gold subscription service, which costs $49.99 per year.
This membership cost obviously limits the potential that lies in online gaming from an advertiser’s perspective. In-game advertising opportunities will always be there, but they are not nearly as dynamic as online gaming placements can be, and have less targeting power.
PS3, however, is giving its players the ability to play and chat on the PlayStation Network for free. This opens up opportunities for advertisers who are interested in delivering ads through these online games to a potentially massive audience.
Microsoft is expecting that about 6 million of its Xbox 360 users will be subscribing to a Gold subscription service, which will be about 60% of its total user base.
If the PS3 catches on and grabs a large share of the market, it is likely that the majority of those players will be using the free online capabilities, which will translate into what could be a lot more eyes to reach than the Xbox 360’s Xbox Live can offer advertisers.
In related news, Nielsen Media Research announced last week that it would collect data about video games. The electronic rating service will track who is playing what video game, much in the same way that the company tracks who is watching what television show.
The information will be accumulated from the same 10,000 sample households that Nielsen uses for its TV ratings.
Advertisers, video game makers, and other subscribers will receive weekly reports concerning this information, which will include the most popular game for that week, as well as what consoles gamers were using, and what genres the games being played were in.
The service will commence in the middle of 2007, and will cover Microsoft, Sony, and Nintendo consoles.
“The value of an entertainment medium is directly proportional to how well it is measured,” said Jeff Herrmann, VP of the wireless and interactive services division at Nielsen.
Sources:
http://news.bbc.co.uk/2/hi/technology/6069082.stm
http://seattlepi.nwsource.com/business/1700AP_
TechBits_Games_Ratings.html
