Study shows in-game advertising more effective than TV

by Staff, Brand Republic 26-Mar-09, 12:25

LOS ANGELES - In-game advertising is found to be more effective than TV marketing, delivering a 500% increase in consumer brand awareness, according to a new study.

Preliminary results from the Online Video Advertising Effectiveness study, conducted by NeoEdge Networks -- an in-game advertising network -- found that online gaming provides "substantially better performance and consumer perception than traditional TV advertising".

The study was conducted with market research firm Frank Magid Associates and advertiser Zappos.com.

In the study, gamers were intercepted with a survey request after game play, which showed one of ten different online ad scenarios, which varied the number, frequency and kind of ads seen.

According to Vicki Cohen, executive vice-president with Frank Magid Associates, the preliminary results show that gamers showed five times more unaided brand awareness where a game included Zappos.com pre, mid and post-roll advertising.

Cohen said: "Over 80% correctly linked Zappos.com as the advertiser who allowed them to play the game for free. And 56% had a more favourable impression of Zappos.com because of their in-game advertising trade-off for free game play."

NeoEdge Networks said the results indicate gamers see, hear and remember brands at a higher level during game play: "traditional TV advertising, due to the medium, just can't deliver these results."

Over 2,000 consumers have participated in the study so far and over one million ad impressions have been used. The study is expected to conclude March 31.

In related news, a study released by Nielsen PreView found that Americans now spend more time playing video games than they do watching the CW television network, which airs shows such as 'America's Next Top Model', 'Gossip Girl', '90210', 'Smallville' and 'Supernatural'.

Console game usage accounted for 64bn minutes in December in the US, according to the National People Meter survey.

Only four other outlets scored more minutes, though not named, are presumed to be major networks NBC, Fox, ABC and CBS.

The study concluded that networks should not feel threatened by the findings, as video game players are also avid consumers of television programming.

Comments

IanC - 26/03/2009

This isn't all that suprising given the level of consumer involvement/engagement, however I'd like to understand the results when we build in cost and reach and all the other important variables. From a campaign perspective, perhaps a more realistic measure of 'effectiveness' or 'performance' (the terms used in the headline and copy), would be weighted to produce something like a $cost per 'effective point' or $cost per 'effective reach'. i.e. very interesting and not that suprising, but I wish they had contextualised the results with cost and reach comparisons. For most people Barbados beats Blackpool, but it's not always cost effective to take the family there. For cost we have to build in production, management/optimisation, ad server costs, etc. I'm not saying the costs are higher than TV but headlines like this only tell half the story. Interesting though.

Will Milling - 03/09/2009

Frequently it has been proved that contextual advertising is effective, unimposing on the gamer experience and cost effective. We hope to shed a little more light on this at the In-game Advertising Webinar Series coming up in October - http://www.marketkey.co.uk/ingame/