Rumor: Google to buy Adscape
As reported (paid subscription required) in the Wall Street Times yesterday, Google is considering acquiring Adscape Media. Last week I speculated that such an acquisition would be unlikely for Google. With all the press – let me take a closer look at Adscape and what might make them attractive to the search giant.
Why In-Game Ads?
There are a few reasons why Google would consider getting into in-game advertising. Perhaps Google feels the need to “keep pace” with Microsoft. This might be a response to Microsoft purchasing Massive, or it might be an effort that aligns with their foray into radio, and newspaper/print advertising. Or, perhaps there is some specific technology behind Adscape that Google wants to lock-up.
Keeping pace with Microsoft is no easy feat – companies either need to invest a tremendous amount of resources, or redefine the marketplace to carve Microsoft out (see Scoble vs. Winer on Microsoft Innovation). To my eyes, it appears that Google is trying the latter approach by pursuing non-WWW advertising options.
In 2006 we saw Google purchase a radio advertising company, explore newspaper advertising, and most recently file a patent on digital billboards. Here there is no direct competition from Microsoft and Google is going to learn a lot about targeting consumers off the web and with little user-context. There are tremendous rewards to be gained from digitizing real-world advertising (think better targeting, easier ad or campaign rotation, measurement, etc…). In-game advertising gives Google a platform to test & refine these technologies before going mainstream.
So, why Adscape?
Adscape boasts their unique “AverPlay” technology allows publishers to activate and deactivate “ad spots” remotely and dynamically. They also claim to have a proprietary “two-way connection between in-game ads and the real-world. Real World/Virtual World Gateway (RVG) enables two-way text, audio and video communication via SMS Text or eMail.” (source, click Technology).
As a gamer this sounds very intrusive, as a publisher this sounds like a mixed message. They claim “a priority of Adscape Media is to ensure the deployment of ads into games does not detract in any way from the game experience.” – yet their flagship technology is intended to provide interactive advertising. In my opinion, using SMS to interact with advertising sounds better suited for real-world billboards, than their virtual counterparts.
In fact, I can’t seem to find any Publishers that have signed with Adscape. Their site doesn’t mention any titles in their network. Their CEO Chris Gilbert claimed (7 months ago) “though we have several deals signed, we can’t discuss them publicly until they are formally announced.”
In the end, I think that’s what makes them attractive to Google – the technology itself, rather than the in-game opportunity. As Google tries to digitize real-world advertising by making it more interactive, they will need technologies such as SMS interaction. Adscape boasts 1 patent granted and 30 filed. In the end these technologies are what matter to Google, not the in-game market.
Related reading:
- Report: Google In-Game Advertising Acquisition Predicted (gamasutra.com)
- Google Behind Microsoft in Advertising in Video Games (searchmarketinggurus.com)
- Google may buy video game ad firm (money.cnn.com)
- Google Diversifies… Sort of: Ads in Games & Patenting Digital Billboards (computers.net)
- Google Seeks Patent For Digital Billboard Ads (wsj.com)
- Where the Advertising Buck is Going (Hint: Digital & Online) (barrons.com)
– Fry
