Video games are the new arena for the two giants

Mar 19, 2007 13:12 GMT  ·  By

I know the title sounds a tad redundant, but bear with me, it will make sense in the end. So, Microsoft and Google have started in-games games. In this context, let's go back in time to May 4, 2006. On this date, the Redmond Company announced the acquisition of the advertising pioneer Massive. Together with one of the leaders of in-game advertising market, Microsoft also got Massive's technology for introducing dynamic and context relevant ads in video games.

"Advertisers are having a tough time connecting with the elusive 18- to 34-year-old male demographic because this group continues to spend less time watching TV and more time playing video games," said then Joanne Bradford, corporate vice president of Global Sales and Marketing and chief media revenue officer at Microsoft.

Microsoft had revealed that the in-game advertisements would debut on Xbox Live and MSN games but that they will also extend the service on non-Microsoft properties. Advertisers pay for such ads via the cost per thousand impressions system. According to data from Yankee Group-Parks Associates, the video game advertising market will increase to $589 million by 2010.

Katherine Hays, the co-founder of Massive and currently a senior director with Microsoft's platform and services division revealed that the Redmond Company will extend its existing volume of 200 ad campaigns across 53 game titles to over 100 games by the beginning of 2008.

Google is lagging behind Microsoft in this regard, but the Mountain View Company breathes advertising, and as such, it announced the acquisition of Adscape Media, an in-game advertising start-up based in San Francisco California. The details of the transaction were not disclosed. So... let the Microsoft and Google in-game games begin!

"Adscape Media offers dynamic delivery of advertising with plot and storyline integration - making its solutions a truly interactive marketing platform. Adscape Media supports sophisticated demographic and geographic targeting and also provides a robust reporting interface for marketers. In-game advertising is an area where we believe Google could add a lot of value to users, advertisers and publishers. Adscape Media's technology and talented team are a great addition to Google's current advertising solutions for advertisers and publishers," Google stated.