In-game Advertising

In-game advertising have recently become a more popular and profitable form of advertising. In fact, they have become so popular, that Microsoft Xbox created an advertising unit called NUads which went live in Fall 2012. It allows customers to respond to advertisers, by a simple wave of the hand or spoken word. As of January 7, 2013, 37% of viewers engaged with NUads when prompted with the option to vote. Of the 37%, 71% actually voted (Microsoft). In-game ads engage consumers far more than traditional tv commercials. The demand to advertise through gaming has increased drastically. The in-game ad market could grow to $1 billion globally by 2014. (ESA)

Like Xbox’s NUads, many other businesses are using in-game ads to market to their customers. Because in-game ads are very creative and interactive, there’s a certain market that companies have a particular interest engaging: children. Children have much purchase power, especially in the food industry. Children influence more than $100 billion in food and beverages each year, and over half of all cold cereal purchases (Ritchel).  In effect, many food companies, like General Mills, Kellogs, and Post, have purposely targeted children through in-game advertising.

For instance, kids can play games through an ad that can create characters, comic strips, etc. Also, while playing these games, the children have the capability to send results via email, text, etc (Ritchel). This is a great marketing strategy because advertisers can evaluate kid’s tastes and visual preferences. It also allows kids to become marketers themselves, by spreading the word to their peers. Also, in-game ads allow children to interact and customize preferences without their parent’s opinion, which is a great tool to clearly understand the child’s perspective on consumer products.

However, these enticing in-game advertisements may come with unhealthy consequences. For instance, Lesly is a 10 year old 4^th grader, who plays Baby Bottle Pops (make as hyperlink) and other candy and cereal games online (Ritchel). She sees multiple in-game ad banners of Baby Bottle Pops. But, like most kids her age, she doesn’t understand what advertisements are in general. She can’t tell the difference between an online game vs. an in-game ad, because both are amusing to her. As a result, she unknowingly participates with in-game ads frequently.

Lesly plays on the Baby Bottle Pops wesbite so much that she begs her mother for the product constantly. She enjoys the candy and its’ website.  She’ll even get her siblings to pressure her mother into buying it. In turn, her mom breaks down and buys the product apprehensively. Her mother believes Lesly has multiple cavities because of this sugary treat.

All in all, in-game advertising is great tool for companies to evaluate children’s preferences. Children take pleasure in the interactivity and customization that many in-game ads allow. However, these in-game ads can become destructive, since the ads are capable of marketing products directly to kids and bypass the parent.

Sources: 

ESA."Games: Improving What Matters." In-Game Advertising. Entertainment Software Association. Web. 17 Jun 2013.

Microsoft Xbox. "The Results Are In: Xbox NUads Makes Traditional TV Advertising More Engaging."Microsoft News Center. N.p., 07 01 2013. Web. 13 Jun 2013.

Richtel, Matt. New York Times. Web. 13 Jun 2013. <http://www.nytimes.com/2011/04/21/business/21marketing.html?pagewanted=1&_r=0&ref=mattrichtel>. 

Now, put on your thinking cap and pretend that your child is begging you for a sugary snack that they found through an in-game ad.  Do you think in-game ads are ethical for children, especially those under 10 who may not understand what ads are? Do you think companies should consider advertising health conscience products for in-game ads targeted to children? Please explain why or why not.