Random Noise

Google to do in-game ads?

From Andre @ Ozymandias:

As promised, here are my game industry predictions for 2007 … Google will show significant public interest in the gaming sector for the first time, including interest in acquisitions to bolster their Ad-sense business. The most likely target will be IGA Worldwide (to combat Microsoft’s acquisition of Massive). If unsuccessful, Google will seek to acquire one of the larger game publishers on the market to gain a foothold in the in-game advertising market. Likely targets include Electronic Arts (though it would be extremely expensive), Activision, or THQ. (Source)

I don’t think we’ll see Google get into the in-game advertising space this year, and I certainly don’t think they’ll become a publisher. It just doesn’t square with their mission and their strengths. Google’s mission is to organize the worlds information and make it universally accessible and useful. They fund this by selling advertising that’s contextually relevant to its surroundings. Ads are placed alongside a set of search results, next to an email, within a 3rd party webpage, or even in a newspaper. In each case Google uses the surrounding context to determine the interests of the viewer.

Within a videogame this doesn’t make much sense. Imagine if advertising in a game like Rainbow Six Vegas promoted various Las Vegas shows or a local Las Vegas restaurant. To make the ads relevant to the gamer, an entirely different approach needs to be taken. Ads can’t be targeted based on in-game surroundings, but rather to what the gamer is interested in outside of the game world. A more effective advertising campaign might promote a show that’s in the same city as the gamer, or perhaps a certain beverage or type of car that the gamer might find appealing.

As for becoming a publisher? Forget it. When you think of Google do you think fun? I sure don’t.

Frag on.

– Fry