Wednesday, May 06, 2009

This is my game; it’s alive!


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Gaming consoles are the new-age platforms for advertising agencies. But a lot still has to be worked upon. Now, the ‘programmers’ have to create magic for the marketers and advertisers. Bring brands to life, writes Arun Kumar Roy...

“Stop being a kid! Stop that game...” What’s that? Well, chances are that that was probably the statement that a so-considered adult shot at you, the last time you were busy scoring hard on your latest gaming console... Yes, India has long been known for a community where games are only left to be played by the ‘growing-ups’; ‘anti-gaming culture’ is what you’d prefer calling it! But over the past decade, with the advent of better gaming consoles, the whole scenario is in for a radical change. As per the PEW Study, 66% of all adults (aged 18 years and above) play video games on consoles or the computer. The figures suggested that the percentage of video gamers amongst those aged 18-29 was a staggering 81%, while those between 30 and 49 stood at an incredible 60%! Furtheron, the survey revealed that the average age of today’s Indian gamer has risen to 28 years – much above even the so-considered maturity age of 18-20 years. So what good news is this for the branded consumer goods and advertisement industries? Surely, technology has managed to move the real world of many into the virtual zone, and advertisers are now eyeing the video gaming industry as the next prospective arena for advertising and increasing brand awareness.

With investments on in-game advertising forecasted to touch a brobdignanian $1.8 billion by 2010, the future for those willing to bet heavy on this platform looks brighter than ever. Today, it is possible to analyse the effectiveness of every portion of advertisement dollars that an agency invests in online gaming, with the help of various algorithms drafted into games. All these analytics help them in designing better ads and placements. Companies like Massive, a subsidiary of Microsoft, have developed a powerful algorithm that use the Internet connection to transfer data back to the agencies, informing them about the gamer’s state of mind, amount of time spent on the current level, the kind of accessories a gamer uses, the time of day and many more. A number of games also use billboard-like ads and product placements to create a more life-like, realistic environment. In this regard, advertisements in virtual worlds and MMORPGs like Second Life and Sim City has become a common buzz. As per a survey conducted by Gamasutra, in-game advertising increases brand recall by 44% and positive brand association by 33%. Over 60% of those surveyed felt that the ads caught their attention and made games more realistic without interrupting gaming experience. A perfect example would be the Starwoods Hotels and Resorts that established an aloft hotel in Second Life. The beauty lies here. The real world hotel is yet to open-up, but an early preview to the gamers provides early feedback to designers from prospective guests and also help in spreading awareness about the same.

More importantly, integrating dynamic advertising into video-game environments gives brands a measured lift in consumer awareness and opinions of the players. And women are not excluded from the target segment here, as Ravi Kumar, Country Head, Gamloft, explains, “Those games which appeal to women are threats to popularity of TV. As casual mobile and other forms of gaming grow in popularity, TV as an entertainment medium will surely stand challenged.”

But there are challenges too! According to Gamasutra, around 82% of consumers feel that games are almost as enjoyable with or without advertisements, and this only points out to one fundamental issue – game developers need to make brands a part of their game and not just simply stick branded logos around! Once they do this, real life dollars will flow in aplenty...

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Source : IIPM Editorial, 2009

An Initiative of IIPM, Malay Chaudhuri and Arindam chaudhuri (Renowned Management Guru and Economist).

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