Today Massive released a study revealing that in-game advertising is surprisingly effective. It was conducted by Nielsen Entertainment and examined various ad campaigns that ran in games that use Massive. The study found:

• Average brand familiarity increased 64%
• Average brand rating increased 37%
• Average purchase consideration raised 41%
• Average ad recall increased 41%
• Average ad rating increased 69%

Before digging in further, here’s how the study was conducted. Over 600 North American gamers were recruited and divided into two groups - a control group and a test group. They both played the same game (Need for Speed, Carbon). The control group played the game but was NOT shown ads. The test group played the game (on Xbox 360 or PC) and was shown ads. Then the same questions were given to both groups. The questions asked gamers about the ads and brands included in the study. The difference between the two groups is what we considered “lift”. So when we say “brand familiarity increased x%” we mean that users in the test group were x% more familiar with the brand than users in the control group.

With that out of the way, here’s what some of our different types of advertisers saw:

• Automotive advertisers achieved a 69% increase in purchase consideration among likely car buyers.
• A consumer packaged goods (CPG) client saw a 71% increase among gamers who considered their snack food a “cool brand”. Among males 18-24 brand familiarity rose 63%.
• A fast-food restaurant ad saw its rating (those who liked it a lot vs. liked it a little) rise 39%.
• A technology tools client saw a 70% increase in brand rating.

I’m really glad our company is sharing data like this with the public and I’m glad the research was done by Nielsen - they’re getting increasingly involved with this market (see my recent post on their GamePlay metrics) and have a lot of experience conducting studies like this. While I would have liked to see the study conducted across more games, I’m impressed that there were so many participants - over 600 in total and over 300 in each group. This is a VERY large sample set for a study of this nature. I’m also excited that the study was conducted across both Xbox 360 and PC gamers.

Related: Massive In-Game Ad Effectiveness Study (Aug-8)

The author Stephen Totilo talks about a recent demo he saw of the upcoming PC game, “Hellgate: London“. Hellgate: London is a MMO style game that blends FPS and RPG characteristics. It takes place in a futuristic post-apocalyptic world. In the game, ads are integrated into places where you would expect them in real life:

Flagship CEO Bill Roper was running the demo and kept bringing his character to a grimy section of the London Underground subway system, which is nicknamed “the tube.” The walls had ads posted all over them, as they do in real life. I saw an iPod ad and one for Guinness…

The demo also included an ad for Children of Men, a movie that is also set in futuristic London.

This article is interesting to me because the author (and Flagship CEO) clearly understand how ads can enhance the gaming experience. They bring realism to the London Underground. They connect gamers with other subjects that might be interesting (like Children of Men) and other areas in the game that don’t have ads were noticeably “barren”. This is especially interesting because this is a game set in the future, not the present. Advertising in future worlds has been a hot topic ever since Battlefield 2142 announced IGA would provide in-game advertisements. But, if Hellgate: London does ship with in-game ads (the article points out the ads in the demo were just placeholders), it could change public perception.

Hellgate: London is expected to ship Summer 2007, there has been no announcement yet about in-game ads in the final version.