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Player Engagement and 
In-Game Advertising 
j e f f r e y b a r d z e l l , p h . d . • s h a owe n b a r d z e l l , p h . d . • t y l e r p a c e
In-game advertising (IGA) refers to the use of computers, the Internet, and video 
games as a medium for the delivery of advertising materials. IGA is one of the fastest 
growing forms of advertising in terms of yearly spending and anticipated growth. 
PriceWaterhouseCoopers estimates total spending on in-game advertising to reach 
$1 billion by 2010. The increasing popularity of in-game advertising can largely be 
attributed to both the increasing popularity of video games in general and the desire 
to reclaim the 18-35 year old male demographic, which is rapidly turning away from 
television towards video games. 
In this paper, we present an analysis of physiological engagement with advertising-rich 
video games. Physiological engagement was measured with OTOinsight’s Quantemo™ 
neuromarketing measurement platform. Analyzing the results from three separate 
physical traces in combination with eye tracking and interview data, we present a 
series of five insights for the design and dissemination of future in-game advertising. 
Insights 
1. More recent ads are more readily remembered. 
2. Highly visible placement compensates for low brand knowledge. 
3. Brand knowledge compensates for low ad visibility. 
4. Engagement and brand recognition are positively linked. 
5. Context-appropriate ads build positive brand associations. 
e x e c u t i v e s u m m a r y : : 
Copyright © 2008, One to One Interactive www.onetooneinteractive.com 1
Copyright © 2008, One to One Interactive www.onetooneinteractive.com 2 
In-game Advertising 
In-game advertising (IGA) refers to the use of computers, the Internet and video games 
as a medium for the delivery of advertising materials. IGA is one of the fastest growing 
forms of advertising in terms of yearly spending and anticipated growth. The projected 
revenue growth for in-game advertising and the ability to recapture the waning 18-35 
year old male demographic has brought major attention to in-game advertising. 
Microsoft and Google both acquired in-game advertising startups within the last three 
years: Massive, Inc., and Adscape Media, respectively. Additionally, numerous other 
startup firms such as JOGO, NeoEdge, Double Fusion, IGA Worldwide, and Game 
Creative are competing in the new game advertising arena. Finally, leading media firms 
are developing an increasing interest in game-based advertising. Among other in-game 
advertising ventures, One to One Interactive partnered with Ubisoft to deliver Comcast 
branded advertising in the popular action game Rainbow Six: Las Vegas and its sequel 
Rainbow Six: Vegas 2. 
Even though the interest in in-game advertising is high, in-game advertising is a relatively 
new and growing domain; accordingly, research is also in its infancy, as standard vocab-ularies 
and evaluative approaches remain in development. To facilitate our discussion of 
in-game advertising, we begin by distinguishing among three general types of in-game 
advertising that have emerged: static, dynamic and online advertising. 
s tat i c I n - g a m e A dv e r t i s i n g : : 
Static in-game advertising is the oldest form of in-game advertising and for commercial 
purposes dates back to the early 1990s, when sports games began placing static banner 
ads for popular sports brands into their products (Figure 1). 
Figure 1: Static In-Game Advertising, FIFA Soccer 1994.
Copyright © 2008, One to One Interactive www.onetooneinteractive.com 3 
Figure 2: Dynamic In-game Advertising, S.W.A.T. 2005. Advertisers are 
able to swap ad posters in and out of the game at will. 
Dynamic In-Game Advertising 
Dynamic in-game advertising first appeared in the mid 2000s and depends on the 
relatively recent ability for video game consoles to access the Internet. Network access 
enables game publishers to dynamically serve and change ads in games (Figure 2) 
based on a variety of criteria (e.g., time, season, demographics, and geography). 
Online In-Game Advertising 
Online in-game advertising refers to immersive online advertising environments, such as 
the interactive areas in the virtual worlds of Second Life devoted to The L Word, NIke, and 
the Pond. These 3D immersive advertising environments may include features ranging 
from simple street banners to detailed recreations of a prominent building, car or other 
product (Figure 3). 
Figure 3: Online In-game Advertising, such as the site for The L Word in 
Second Life, is a 3D immersive and interactive advertising environment.
Like all media, audience demographics are important to achieving success with in-game 
advertising. The video game market is typically divided into two categories: casual and 
hard-core. Casual gamers are predominantly female, ages 35-49, and play games 
<10 hours a week, primarily when they need to take quick breaks and relax. Hard-core 
gamers are mostly male, ages 18-35, and play games >15 hours a week. The present 
report is focused on advertising aimed at the hard-core gamer market. In recent years 
18-35 year old males, a key marketing demographic, have partly transitioned away from 
television and movies, focusing more spending on video games, making video games the 
fastest growing entertainment media sector (PriceWaterhouseCoopers, 2007). In-game 
advertising is seen as the latest medium through which advertisers can reclaim access to 
these consumers and build brands with the latest generation of gamers. 
Copyright © 2008, One to One Interactive www.onetooneinteractive.com 4 
Figure 4: Breakdown of Gamer Demographics (Entertainment Software Association, 2008). 
U l t ra C a s u a l / N o n - G a m e r I C a s u a l I Tra n s i t i o n a l / M o d e ra te I H a rd co re I U l t ra H a rd co re ‑ “ O b s e ss i ve ” 
Entertainment 
Looking to take a break and relax. So cial 
May play as much as a professional. 
Primary motivation is to spend time with 
friends and meet new people. 
Prof essio nal 
Play to Win, Regularly Increase Skill 
female 
25-34 
> 10hrs /wee k 
male 
18-49 
15+hrs /wee k
Copyright © 2008, One to One Interactive www.onetooneinteractive.com 5 
One of the primary struggles with in-game advertising, especially when oriented towards 
hardcore gamers, is managing the level of context appropriateness a particular ad has inside 
its game setting. Gamers are receptive to ads that are appropriate or natural to the game 
world. Appropriate ads provide the opportunity for gamers to make additional connections 
between the game and reality through positive brand associations. Figure 5 demonstrates 
an example of context appropriate advertising where Comcast, a regular sponsor of real 
world sports, has an ad displayed in NBA Live 08 in a location analogous to that of real 
basketball arenas. 
However, not all in-game advertising remains context appropriate. Figure 6 shows a context 
inappropriate use of advertising in the Counter-Strike first person shooter game. Counter- 
Strike is an open source game that allows for any person or company to perform edits to 
the game and rerelease the software. In this example, a user edited the game to include 
excessive Subway advertising. Both Counter-Strike gamers and Valve Software, creators of 
the closed source engine used to support Counter-Strike, took quick action to remove the 
extremely context inappropriate advertising from their game world (Anderson, 2006). 
FIGUR e 5: Context Appropriate In-game Advertising. Comcast is part of the background table 
in a position where advertising normally exists in real world NBA games (NBA Live 08). 
FIGURE 6: Context Inappropriate In-game Advertising in Counter-Strike. In 2006 Subway 
heavily advertised inside a military themed first person shooter game.
Copyright © 2008, One to One Interactive www.onetooneinteractive.com 6 
Despite the challenges of developing in-game advertising and matching it to a context 
appropriate game setting, the in-game advertising market is expected to grow rapidly 
in the near future. In their 8th Annual Global Entertainment and Media Outlook Report, 
PriceWaterhouseCoopers projects that the video games industry will grow to $47b 
annually by 2010 (Figure 7). 
While $47b is a smaller market than television ($227b) or movies ($104b), the video game 
sector is the fastest growing form of advertising media. The annual compound growth rate 
of games sales is expected to hit 11% annually by 2010, which is double the growth rate 
of movies and television (Figure 8). 
A high compound annual growth rate corresponds to overall advertising sales. According 
to both PriceWaterhouseCoopers and Yankee Group, spending on in-game advertising is 
expected to grow from its current $90m to nearly $1b annually by 2011 (Figure 9). 
Finally, advertisers are not the only party hopeful for the future of in-game advertising. 
Game publishers see advertising as a method for increasing profits, offsetting escalating 
development costs and introducing new revenue models for the games industry, such as 
free-to-play ad-supported games. 
media sales in 2010 
Games $47 
Movies $104 
TV $227 
FIGURE 7: Media Sales (Billions). 
Figure 9: In-Game Advertising (Millions) 
$1,000 
$900 
$800 
$700 
$600 
$500 
$400 
$300 
$200 
$100 
$0 
2006 2011 
Figure 8: Compound Annual Growth Rate 
12.0% 
10.0% 
8.0% 
6.0% 
4.0% 
2.0% 
0% 
games TV films
Copyright © 2008, One to One Interactive www.onetooneinteractive.com 7 
study design 
The effectiveness of in-game advertising is a growing topic among advertisers, researchers 
and game publishers. Current metrics that measure in-game advertising are primarily 
limited to ad impressions. Ad impressions have a troubled history as an effective adver-tising 
measure for web, print and other traditional media. As evidenced by the work of the 
Advertising Research Foundation and others, measures of engagement are rapidly replacing 
impression based metrics for advertising research. In-game advertising is contained within 
one of the most dynamic, visually stimulating and cognitively demanding media to date, 
and as such provides a very challenging and poignant medium for measuring engagement 
instead of impressions. 
The study presented in this report explores the use of a broader range of metrics for 
measuring in-game advertising. In particular, the study looks at whether or not players 
actually look at ads, which and what type of ads they remember, and player associations 
with in-game advertising. To achieve the goals of this study, a multi-modal approach to 
digital media evaluation was used, which combines traditional behavioral and interview 
assessments of user experience with the measurement of biophysical responses while 
exposed to advertising materials. 
OTOinsight’s Quantemo™ system served as the foundation of this study on in-game adver-tising. 
Quantemo™ allows for the simultaneous capture of multiple biophysical responses 
(breath rate, heart rate, galvanic skin response, body skin temperature), in addition to 
eye tracking and click tracking information. After recording the biophysical measures, 
Quantemo™ combines all of the measures into a single, representative measure of 
physiological engagement. The Quantemo™ Physiological Index (QPI) serves as a single 
point of reference for the overall level of physical engagement (or disengagement) 
exhibited by a research participant. Positive QPI scores represent stronger physiological 
engagement, while negative QPI scores represent weaker physiological engagement. 
Analysis of eye tracking footage, QPI and interrogative data provide the basis for the 
insights put forth in this report. 
This study focused on user engagement of in-game advertising inside sports-based video 
games. Sports games are among the earliest and most successful adopters of in-game 
advertising. Generally, advertising in sports games is both high quality and highly prevalent, 
giving participants an optimal opportunity to engage with ads in the games. In total, 11 
games were chosen for the study. Games were selected based on two criteria: average 
industry reviewer score and type of sport. High average industry reviewer scores were used 
to ensure game quality and popularity (highly rated games are often best sellers); we also 
sought to represent a variety of different sports. Multiple games for each sport (e.g., football, 
basketball, racing, etc.) were used to account for variations in both advertised brands and 
implementations of in-game advertising.
Copyright © 2008, One to One Interactive www.onetooneinteractive.com 8 
Figure 10: Breakdown of Selected Games provides a breakdown of the games featured 
in the study. Each game is listed with its average industry reviewer score as reported by 
Gamerankings.com, in addition to the median Quantemo™ Physiological Index (QPI) 
calculated using the data collected from all study participants. As previously mentioned, 
positive QPI scores indicate heightened levels of engagement while negative QPI scores 
indicate disengagement. Overall, QPI scores for games in this study range from a 
maximum of 2.3 for Guitar Hero 3 to a -2.074 for College Hoops 2K7. The implications 
of high and low QPI scores in regards to the effectiveness of in-game advertising are 
discussed in greater detail throughout this report. 
Eight individuals participated in the study. The average age of participants was 25 
with 2 female and 6 male participants (a proportion that loosely represents hard-core 
gamer demographics). All participants were given a questionnaire, in which 
they identified their video game playing history as well as knowledge about the 
sports represented in the games selected for the study. Average weekly video game 
playing was 7-10 hours and average years playing video games was 6-10 years for 
the study subjects. 
Burnout Paradise 87% .608 
College Hoops 2K7 81% -2.074 
Guitar Hero 3 86% 2.300 
NBA Live 08 73% 1.132 
NBA Street Homecourt 83% 1.805 
Madden NFL 08 83% -1.939 
Project Gotham Racing 4 86% -.609 
Sega Rally Revo 77% .124 
Skate 87% -.619 
Tony Hawk Project 8 82% -.604 
VirtuaTennis 3 80% .389 
Games 
Avg. Industry 
Revi ewer Sco re 
MED IAN 
QPI 
FIGURE 10: Breakdown of Selected Games including average industry 
reviewer score and median QPI.
Copyright © 2008, One to One Interactive www.onetooneinteractive.com 9 
Each participant was shown prerecorded game play video clips from each of the 
11 games. Game play clips, instead of live game play, were used for several reasons. First, 
ad density and placement varies by game, and we wanted to ensure that each game the 
subjects engaged with had reasonably comparable amounts of exposure to advertising. 
Additionally, hard-core gamers are also spectator gamers, spending a great deal of time 
watching game play when not actively playing. Finally, biophysical measures are easily 
affected by various stimuli, and reducing a participant’s physical activity is one means 
to control for extra noise in biophysical signals. 
All game play clips were shown in a random counterbalanced order to account for the 
time at which an ad was seen. After viewing each clip, participants were asked to fill out 
a brief questionnaire inquiring about their most and least favorite moments in each video. 
Finally, after viewing all the clips, participants were asked to identify as many brands 
as they could remember from the videos. A list with both real and false brands was 
provided to facilitate the brand recognition task. 
GENERAL FIND INGS 
Several general findings were developed from the study. Primarily, these findings validate 
the research method, in addition to demonstrating broad behaviors associated with 
exposure to in-game advertising. 
First, the time a video was shown did not affect the level of physiological engagement with 
a video. It is important to balance exposure to the game play videos and advertisements 
to control for users who might become disinterested with the study prior to completion. 
Disinterest with the study, and not necessarily the content, can artificially impact the 
physiological measures recorded to calculate the QPI, especially with material presented 
at the end of the study. In this study, participant reactions to videos were consistent 
regardless of when they were presented. In other words, a video was just as engaging 
(or disengaging) when it was shown to a participant first, last or somewhere in the middle. 
Second, participants’ physiological reactions and the resulting QPI calculations were 
consistent among the most and least engaging videos. Consistent QPI scores for the 
extremes of the engagement spectrum provide early indication that the QPI is a 
consistent and reliable measure of engagement. 
Third, for 90% of participants, brands were remembered at a rate greater than chance, 
which demonstrates actual recognition based on their exposure to in-game advertising. 
At the core of this study is the hypothesis that in-game advertising promotes brand 
recognition, and our results confirm this hypothesis.
Copyright © 2009, One to One Interactive www.onetooneinteractive.com 10 
I n s i g h t S : : 
In the following sections, we summarize the findings from this study under the headings 
of the primary insights derived from analysis of the QPI, eye tracking and interview data. 
Insight 1: More Recent Ads are More Readily Remembered 
Exposure to in-game advertising is largely directed by the forces of frequency and 
recency. Frequency refers to how often an ad is delivered to the player during their 
gaming session. With some games, impressions might be delivered every couple of 
seconds, while in other games ads are delivered more sporadically every few minutes. 
Analyzing for frequency and recency, we discovered that recency has a more potent 
effect on brand recognition for in-game advertising. The majority (80%) of our 
research participants remembered all of the ads from the second half of each video 
clip. This effect holds true even in the earliest game play clips shown to a participant. 
Additionally, Figure 11 demonstrates that while only 12% of brands participants 
remembered were shown early in their game play clips, a striking 88% of remembered 
brands came from the end of game play clips. Furthermore, QPIs tended to be higher 
towards the end of a game play session (where more brands were remembered), 
which lends further credibility to the association between heightened physiological 
engagement and future brand recognition. 
FIGURE 11: Recency Effect for In-Game Advertising. Brands displayed later in 
video clips were more likely to be remembered and correspond to a higher QPI. 
Average 12% .23 88% 1.26 
% of Early 
Brands 
Rememb ered 
Early 
QPI 
% OF LA TE 
BRA NDS 
RE MEMBERED 
LA TE 
QPI
Copyright © 2008, One to One Interactive www.onetooneinteractive.com 11 
This finding is consistent with the peak-end theory of memory, which states that once 
a memory moves from immediate short term memory, people remember the peak 
(best) experience and the end experience in the most accurate detail (Kahneman, 1999). 
A combination of the information density of video games and the length of game play 
sessions (30 minutes or greater) may limit the active recognition of brands to game 
locations located at the peak or end of game play. 
Placing ads in terminal game play locations, such as menus, finish lines, save points, etc., 
is one strategy for maximizing the strong recency effect discovered in this study. 
Figure 12 demonstrates an example of a terminal in-game ad in Guitar Hero III. Pontiac 
is highlighted in the background of the stage during the final seconds of the song. A 
strong Pontiac logo is one of the final images seen by the player and thus more likely 
to be remembered past the short term. 
FIGURE 12: Recency Effect, Guitar Hero III. The Pontiac logo is 
prominently displayed at the end of the song.
Insight 2: Highly Visible Placement Compensates for Low Brand Knowledge 
In-game advertisements with the most prominent visual placements were remembered 
more frequently than less prominently placed ads by those with limited knowledge about 
the sport depicted in the game. High knowledge about a sport entails knowledge about 
the brands and sponsors associated with that sport. This brand knowledge barrier can 
be overcome by increasing the visual prominence of the advertisement. 
As an example from this study, most participants reported little to no knowledge about 
car racing. However, racing brands were among the most remembered by all participants. 
The brands that were most often remembered benefited from particularly strong place-ment 
as large, central banners (which were often in terminal locations) or as smaller ads 
affixed to objects that were constantly in view, such as the race car itself. Not surprisingly, 
the visually prominent locations accounted for the most eye gazes and views from the 
eye tracking data. Visually prominent ads are seen and remembered, even in fast paced 
game play. 
Figure 13 and Figure 14 offer two examples from the study that demonstrate successful, 
visually prominent ad placement. A large, clear Potenza banner is seen in Figure 13 at 
the start/finish line of the racetrack. Players start the race under this banner, pass through 
it on every lap and end their course under the banner. Potenza was one of the most 
remembered brands presumably because of its unique position as both a terminal 
and frequent advertisement. Figure 14 displays a Subaru logo on the back of a blue 
Subaru race car. Even though the advertisement is relatively small as a percentage of the 
overall display, it is easily remembered due to its fixed position on the player’s primary 
object of focus. As evidenced by the eye tracking footage, the Subaru ad was the most 
viewed ad of any in the study due to its fortunate placement. 
Copyright © 2008, One to One Interactive www.onetooneinteractive.com 12 
FIGURE 13: Prominent Ad Placement, Project Gotham Racing 4. The Potenza 
logotype is prominently displayed in the center of the screen.
Insight 3: Brand Knowledge Compensates for Low Ad Visibility 
As an inverse to Insight 2, knowledge about a brand increases recognition and recall 
when the advertisement is placed in a location with limited visibility. Ads with limited 
visibility were more readily remembered in games which depicted sports most familiar 
to the participants. Even though eye tracking footage shows fewer eye gazes for ads 
with limited visibility, the brand recognition was as high as visually prominent ads for 
participants with high knowledge about the sport. 
Figure 15 and 16 highlight two examples from the study where advertisements with 
limited visibility were remembered by participants with high knowledge and exposure 
to the sport. In Figure 15, a Honda ad is displayed on the left side of the screen; however, 
the iconic Honda logotype is mostly obscured by other in-game objects. Figure 16 
shows two soda machines on the right hand side that feature the Sprite logo. In both 
cases, participants familiar with tennis or basketball successfully identified the brands 
even though the advertisements were small, peripheral, and even obscured. 
Copyright © 2008, One to One Interactive www.onetooneinteractive.com 13 
FIGURE 14: Prominent Ad Placement, Sega Rally. The Subaru logotype is 
fixed to the back of the player’s car and is always on screen.
Insights 2 and 3 together lead to the conclusion that, like most advertising, it is important 
to understand the existing relationship between the brand and the consumer. Advertising 
a brand unknown to the game’s audience will require more prominent placement in 
order to be effective and vice versa. The extent to which game players do or do not 
exclusively play games that represent their real world interests is largely unknown, so, 
as an example, it is up to advertisers to determine whether or not consumers playing 
the latest football video game are also real-life football fans familiar with brands 
commonly associated with football. 
Copyright © 2008, One to One Interactive www.onetooneinteractive.com 14 
FIGURE 15: Limited Ad Visibility, VirtuaTennis. The Honda logotype, while pushed to the side, was noticed by 
participants who rated the highest on knowledge about tennis. Honda is a regular sponsor of tennis events.
Insight 4: Engagement and Brand Recognition Are Positively Linked 
This study discovered a developing association between a player’s heightened 
physiological engagement and the ability to correctly identify brands from their exposure 
to in-game advertising. Inversely, negative or limited engagement with a game had 
an adverse impact on player ability to remember brands. Figure 17 shows a developing 
trend between an increase in physiological engagement (evidenced through the QPI 
measurement) and brand recognition. In this study, 42% of brands remembered came 
from more engaging (QPI > 1) games, whereas only 30% of brands remembered came 
from games with average engagement levels (QPI < 1). 
As with the recency effect detailed in Insight 1, peak-end memory theory supports the early 
association between engagement and brand recall. Peak experiences are likely to be the 
most engaging and therefore have the strongest and most accurate residence in memory, 
making brands associated with those moments more likely to be successfully recognized 
and recalled. Unfortunately, identifying engaging moments within games in which to place 
advertising is a difficult matter. The exact qualities of what makes a given game experience 
engaging to one person instead of another are unknown. Only thorough, primary research 
into player engagement with anticipated game titles may help in the media buying process, 
when the goal is to build brand associations through peak experiences. 
Copyright © 2008, One to One Interactive www.onetooneinteractive.com 15 
FIGURE 16: Limited Ad Visibility, NBA Street. Sprite logos in the edges of the screen were consistently 
remembered by participants who rated the highest on knowledge about basketball. Sprite is a regular 
sponsor of NBA events and games. 
Average 42% 1.08 30.15% 0.87 
% Brands 
FROM ENGAG ING 
GAMES 
FIGURE 17: Recency Effect for In-Game Advertising. Brands displayed later in 
video clips were more likely to be remembered and correspond to a higher QPI. 
AVG. QPI 
ENGAG ING 
GAMES 
% Brands 
FROM BASE 
GAMES 
AVG. QPI 
BASE 
GAMES
Insight 5: Context-Appropriate Ads Build Positive Brand Associations 
Context-appropriate advertisements, which constitute the majority of those in our 
game play clips, were universally rated as a positive aspect for each game in our study. 
Advertisements which support and extend the game world and provide more oppor-tunities 
to create connections between the game and reality positively impact the 
gaming experience, thereby facilitating positive brand associations with game players. 
All study participants encouraged the use of context appropriate ads as a means for 
increasing the realism of the game world. As one player stated, “It wouldn’t be sports 
without ads.” 
However, advertisers participate in the fine line of balancing game play and fun with 
realism. As more real world ads enter game worlds, the perceived realism of the world 
potentially increases. As realism increases, pressure is placed on gameplay rules and 
mechanics also to behave more realistically. If players perceive too great a disconnection 
between the realism of the depicted environment and the gameplay rules and 
constraints, the game becomes absurd. For example, in the study, the two participants 
most knowledgeable about racing stated that the city streets in Project Gotham 
Racing 4 (Figure 18), carefully recreated based on New York City complete with a variety 
of real world brands, were too real, in the sense that they disrupted the game’s fantasy 
that one would actually be able to race on New York streets. It would be more plausible 
to race through a city’s streets if they are distanced enough from real life in some way, 
such as stylization, abstraction, etc. Advertising is not, of course, solely responsible for 
the negative impact of realism experienced by the participants, but advertisers should 
be aware of the potential for their advertisements to change the game experience in a 
variety of ways, not all of them beneficial or obvious. 
Copyright © 2008, One to One Interactive www.onetooneinteractive.com 16 
FIGURE 18: Fine Line of Context In/Appropriate Advertising, Project Gotham Racing 4. Several participants 
commented that the almost excessive amounts of real world branding inside the racing game made the 
tracks feel unreal because it’s not possibleto race on real streets like the game depicts.
Copyright © 2008, One to One Interactive www.onetooneinteractive.com 17 
Conclusio n 
The findings of this report suggest that in-game advertising can be highly effective, even 
among players who profess little to no pre-existing knowledge about brands they see 
in-game. Visual placement and frequency are critical in reinforcing brand recognition. 
Identifying strategic visual locations for ads, rather than slapping them onto any visible 
surface in-game, is paramount for achieving success with in-game ad campaigns. 
However, a balance must be maintained between utilizing the best visual locations for 
advertising and not breaching the barrier of player-perceived context appropriateness. 
The expectations for in-game advertising are high, but the ability to meet and measure 
those expectations is challenged by the very nature of video games. Video games, more 
so than any previous media, are highly immersive, interactive, and visually dynamic 
media, and accordingly their cognitive and physiological demands make the evaluation 
of in-game advertising unusually difficult. Metrics based on impressions and screen 
time may no longer be relevant or helpful when distributing advertising in the latest 
generation of highly immersive digital games. Instead, as this report demonstrates, 
in-game advertising may be better measured in terms of player engagement and context 
appropriateness. Positive links between user engagement and brand association are 
constantly developing; this report provides early evidence that positive physiological 
engagement leads to increased brand recognition. 
Overall, the chief finding in this report may be the affirmation of the importance of 
conducting primary research to quantify player engagement with appropriate game 
titles in order to facilitate the media buying selection process and ensure both higher 
brand recognition as well as improved acceptance of in-game advertising among players. 
References 
1. Anderson, N. (2006). Following the money: how Subway ads ended 
up in Counter-Strike. Retrieved August 3, 2008 from: 
http://arstechnica.com/news.ars/post/20060116-5985.html 
2. Entertainment Software Association. (2008). Essential Facts about the 
Computer and Video Game Industry. Retrieved August 3, 2008 from: 
http://www.theesa.com/facts/gameplayer.asp 
3. Kahneman, D. (1999). Objective Happiness. In D. Kahneman, E. Diener, & N. Schwarz, 
Well-Being: The Foundations of Hedonic Psychology (pp. 3-25). New York: Russel Sage 
4. PriceWaterhouseCoopers. (2007). Global Entertainment and Media Outlook: 2007-2011 
5. Yankee Group. (2007). Advertising and Games: 2007 In-Game Advertising Forecast
amplif ying USER engagement 
New knowledge about human behavior brought to light by social and neuroscience 
has fundamentally called into question the old mental models of how advertising 
and marketing work. Gone is the notion that consumers make decisions in a 
linear think-feel-do way and behavior is guided by rational-only principles. Instead, 
memories, emotions, associations, and thoughts play a primary role in how 
individuals relate and ultimately engage with brands. 
OTOinsights is a primary research offering that is breaking new ground in neuro-marketing 
to offer clients advanced and scientific levels of insights into how their 
consumers engage with them across the landscape of new media channels. 
To learn more about OTOinsights, visit www.otoinsights.com 
Complete One-To-One So lutio ns for Brands, Agencies, and Publishers 
OTOinsights is a One to One Interactive company. Established in 1997, One to One 
Interactive is the first enterprise to assemble a complete solution for brands, agencies, 
and publishers executing one-to-one marketing strategies. By bringing together one 
of the nation’s leading digital marketing agencies, the world’s most comprehensive 
portfolio of permission marketing platforms, unique performance-based social media 
networks, and cutting-edge neuromarketing research techniques, the companies 
of One to One Interactive build informed and creative customer/constituent strategies 
on the belief that digital media’s ability to enable engaging one-to-one dialogues is 
the future of marketing. 
To learn more about One to One Interactive, visit www.onetooneinteractive.com 
OTOinsights 
529 Main Street, Charlestown, MA 02129 
617.425.7300 
www.otoinsights.com 
info@otoinsights.com 
Copyright © 2008, One to One Interactive www.onetooneinteractive.com 18

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Player Engagement and In-Game Advertising

  • 1. Player Engagement and In-Game Advertising j e f f r e y b a r d z e l l , p h . d . • s h a owe n b a r d z e l l , p h . d . • t y l e r p a c e
  • 2. In-game advertising (IGA) refers to the use of computers, the Internet, and video games as a medium for the delivery of advertising materials. IGA is one of the fastest growing forms of advertising in terms of yearly spending and anticipated growth. PriceWaterhouseCoopers estimates total spending on in-game advertising to reach $1 billion by 2010. The increasing popularity of in-game advertising can largely be attributed to both the increasing popularity of video games in general and the desire to reclaim the 18-35 year old male demographic, which is rapidly turning away from television towards video games. In this paper, we present an analysis of physiological engagement with advertising-rich video games. Physiological engagement was measured with OTOinsight’s Quantemo™ neuromarketing measurement platform. Analyzing the results from three separate physical traces in combination with eye tracking and interview data, we present a series of five insights for the design and dissemination of future in-game advertising. Insights 1. More recent ads are more readily remembered. 2. Highly visible placement compensates for low brand knowledge. 3. Brand knowledge compensates for low ad visibility. 4. Engagement and brand recognition are positively linked. 5. Context-appropriate ads build positive brand associations. e x e c u t i v e s u m m a r y : : Copyright © 2008, One to One Interactive www.onetooneinteractive.com 1
  • 3. Copyright © 2008, One to One Interactive www.onetooneinteractive.com 2 In-game Advertising In-game advertising (IGA) refers to the use of computers, the Internet and video games as a medium for the delivery of advertising materials. IGA is one of the fastest growing forms of advertising in terms of yearly spending and anticipated growth. The projected revenue growth for in-game advertising and the ability to recapture the waning 18-35 year old male demographic has brought major attention to in-game advertising. Microsoft and Google both acquired in-game advertising startups within the last three years: Massive, Inc., and Adscape Media, respectively. Additionally, numerous other startup firms such as JOGO, NeoEdge, Double Fusion, IGA Worldwide, and Game Creative are competing in the new game advertising arena. Finally, leading media firms are developing an increasing interest in game-based advertising. Among other in-game advertising ventures, One to One Interactive partnered with Ubisoft to deliver Comcast branded advertising in the popular action game Rainbow Six: Las Vegas and its sequel Rainbow Six: Vegas 2. Even though the interest in in-game advertising is high, in-game advertising is a relatively new and growing domain; accordingly, research is also in its infancy, as standard vocab-ularies and evaluative approaches remain in development. To facilitate our discussion of in-game advertising, we begin by distinguishing among three general types of in-game advertising that have emerged: static, dynamic and online advertising. s tat i c I n - g a m e A dv e r t i s i n g : : Static in-game advertising is the oldest form of in-game advertising and for commercial purposes dates back to the early 1990s, when sports games began placing static banner ads for popular sports brands into their products (Figure 1). Figure 1: Static In-Game Advertising, FIFA Soccer 1994.
  • 4. Copyright © 2008, One to One Interactive www.onetooneinteractive.com 3 Figure 2: Dynamic In-game Advertising, S.W.A.T. 2005. Advertisers are able to swap ad posters in and out of the game at will. Dynamic In-Game Advertising Dynamic in-game advertising first appeared in the mid 2000s and depends on the relatively recent ability for video game consoles to access the Internet. Network access enables game publishers to dynamically serve and change ads in games (Figure 2) based on a variety of criteria (e.g., time, season, demographics, and geography). Online In-Game Advertising Online in-game advertising refers to immersive online advertising environments, such as the interactive areas in the virtual worlds of Second Life devoted to The L Word, NIke, and the Pond. These 3D immersive advertising environments may include features ranging from simple street banners to detailed recreations of a prominent building, car or other product (Figure 3). Figure 3: Online In-game Advertising, such as the site for The L Word in Second Life, is a 3D immersive and interactive advertising environment.
  • 5. Like all media, audience demographics are important to achieving success with in-game advertising. The video game market is typically divided into two categories: casual and hard-core. Casual gamers are predominantly female, ages 35-49, and play games <10 hours a week, primarily when they need to take quick breaks and relax. Hard-core gamers are mostly male, ages 18-35, and play games >15 hours a week. The present report is focused on advertising aimed at the hard-core gamer market. In recent years 18-35 year old males, a key marketing demographic, have partly transitioned away from television and movies, focusing more spending on video games, making video games the fastest growing entertainment media sector (PriceWaterhouseCoopers, 2007). In-game advertising is seen as the latest medium through which advertisers can reclaim access to these consumers and build brands with the latest generation of gamers. Copyright © 2008, One to One Interactive www.onetooneinteractive.com 4 Figure 4: Breakdown of Gamer Demographics (Entertainment Software Association, 2008). U l t ra C a s u a l / N o n - G a m e r I C a s u a l I Tra n s i t i o n a l / M o d e ra te I H a rd co re I U l t ra H a rd co re ‑ “ O b s e ss i ve ” Entertainment Looking to take a break and relax. So cial May play as much as a professional. Primary motivation is to spend time with friends and meet new people. Prof essio nal Play to Win, Regularly Increase Skill female 25-34 > 10hrs /wee k male 18-49 15+hrs /wee k
  • 6. Copyright © 2008, One to One Interactive www.onetooneinteractive.com 5 One of the primary struggles with in-game advertising, especially when oriented towards hardcore gamers, is managing the level of context appropriateness a particular ad has inside its game setting. Gamers are receptive to ads that are appropriate or natural to the game world. Appropriate ads provide the opportunity for gamers to make additional connections between the game and reality through positive brand associations. Figure 5 demonstrates an example of context appropriate advertising where Comcast, a regular sponsor of real world sports, has an ad displayed in NBA Live 08 in a location analogous to that of real basketball arenas. However, not all in-game advertising remains context appropriate. Figure 6 shows a context inappropriate use of advertising in the Counter-Strike first person shooter game. Counter- Strike is an open source game that allows for any person or company to perform edits to the game and rerelease the software. In this example, a user edited the game to include excessive Subway advertising. Both Counter-Strike gamers and Valve Software, creators of the closed source engine used to support Counter-Strike, took quick action to remove the extremely context inappropriate advertising from their game world (Anderson, 2006). FIGUR e 5: Context Appropriate In-game Advertising. Comcast is part of the background table in a position where advertising normally exists in real world NBA games (NBA Live 08). FIGURE 6: Context Inappropriate In-game Advertising in Counter-Strike. In 2006 Subway heavily advertised inside a military themed first person shooter game.
  • 7. Copyright © 2008, One to One Interactive www.onetooneinteractive.com 6 Despite the challenges of developing in-game advertising and matching it to a context appropriate game setting, the in-game advertising market is expected to grow rapidly in the near future. In their 8th Annual Global Entertainment and Media Outlook Report, PriceWaterhouseCoopers projects that the video games industry will grow to $47b annually by 2010 (Figure 7). While $47b is a smaller market than television ($227b) or movies ($104b), the video game sector is the fastest growing form of advertising media. The annual compound growth rate of games sales is expected to hit 11% annually by 2010, which is double the growth rate of movies and television (Figure 8). A high compound annual growth rate corresponds to overall advertising sales. According to both PriceWaterhouseCoopers and Yankee Group, spending on in-game advertising is expected to grow from its current $90m to nearly $1b annually by 2011 (Figure 9). Finally, advertisers are not the only party hopeful for the future of in-game advertising. Game publishers see advertising as a method for increasing profits, offsetting escalating development costs and introducing new revenue models for the games industry, such as free-to-play ad-supported games. media sales in 2010 Games $47 Movies $104 TV $227 FIGURE 7: Media Sales (Billions). Figure 9: In-Game Advertising (Millions) $1,000 $900 $800 $700 $600 $500 $400 $300 $200 $100 $0 2006 2011 Figure 8: Compound Annual Growth Rate 12.0% 10.0% 8.0% 6.0% 4.0% 2.0% 0% games TV films
  • 8. Copyright © 2008, One to One Interactive www.onetooneinteractive.com 7 study design The effectiveness of in-game advertising is a growing topic among advertisers, researchers and game publishers. Current metrics that measure in-game advertising are primarily limited to ad impressions. Ad impressions have a troubled history as an effective adver-tising measure for web, print and other traditional media. As evidenced by the work of the Advertising Research Foundation and others, measures of engagement are rapidly replacing impression based metrics for advertising research. In-game advertising is contained within one of the most dynamic, visually stimulating and cognitively demanding media to date, and as such provides a very challenging and poignant medium for measuring engagement instead of impressions. The study presented in this report explores the use of a broader range of metrics for measuring in-game advertising. In particular, the study looks at whether or not players actually look at ads, which and what type of ads they remember, and player associations with in-game advertising. To achieve the goals of this study, a multi-modal approach to digital media evaluation was used, which combines traditional behavioral and interview assessments of user experience with the measurement of biophysical responses while exposed to advertising materials. OTOinsight’s Quantemo™ system served as the foundation of this study on in-game adver-tising. Quantemo™ allows for the simultaneous capture of multiple biophysical responses (breath rate, heart rate, galvanic skin response, body skin temperature), in addition to eye tracking and click tracking information. After recording the biophysical measures, Quantemo™ combines all of the measures into a single, representative measure of physiological engagement. The Quantemo™ Physiological Index (QPI) serves as a single point of reference for the overall level of physical engagement (or disengagement) exhibited by a research participant. Positive QPI scores represent stronger physiological engagement, while negative QPI scores represent weaker physiological engagement. Analysis of eye tracking footage, QPI and interrogative data provide the basis for the insights put forth in this report. This study focused on user engagement of in-game advertising inside sports-based video games. Sports games are among the earliest and most successful adopters of in-game advertising. Generally, advertising in sports games is both high quality and highly prevalent, giving participants an optimal opportunity to engage with ads in the games. In total, 11 games were chosen for the study. Games were selected based on two criteria: average industry reviewer score and type of sport. High average industry reviewer scores were used to ensure game quality and popularity (highly rated games are often best sellers); we also sought to represent a variety of different sports. Multiple games for each sport (e.g., football, basketball, racing, etc.) were used to account for variations in both advertised brands and implementations of in-game advertising.
  • 9. Copyright © 2008, One to One Interactive www.onetooneinteractive.com 8 Figure 10: Breakdown of Selected Games provides a breakdown of the games featured in the study. Each game is listed with its average industry reviewer score as reported by Gamerankings.com, in addition to the median Quantemo™ Physiological Index (QPI) calculated using the data collected from all study participants. As previously mentioned, positive QPI scores indicate heightened levels of engagement while negative QPI scores indicate disengagement. Overall, QPI scores for games in this study range from a maximum of 2.3 for Guitar Hero 3 to a -2.074 for College Hoops 2K7. The implications of high and low QPI scores in regards to the effectiveness of in-game advertising are discussed in greater detail throughout this report. Eight individuals participated in the study. The average age of participants was 25 with 2 female and 6 male participants (a proportion that loosely represents hard-core gamer demographics). All participants were given a questionnaire, in which they identified their video game playing history as well as knowledge about the sports represented in the games selected for the study. Average weekly video game playing was 7-10 hours and average years playing video games was 6-10 years for the study subjects. Burnout Paradise 87% .608 College Hoops 2K7 81% -2.074 Guitar Hero 3 86% 2.300 NBA Live 08 73% 1.132 NBA Street Homecourt 83% 1.805 Madden NFL 08 83% -1.939 Project Gotham Racing 4 86% -.609 Sega Rally Revo 77% .124 Skate 87% -.619 Tony Hawk Project 8 82% -.604 VirtuaTennis 3 80% .389 Games Avg. Industry Revi ewer Sco re MED IAN QPI FIGURE 10: Breakdown of Selected Games including average industry reviewer score and median QPI.
  • 10. Copyright © 2008, One to One Interactive www.onetooneinteractive.com 9 Each participant was shown prerecorded game play video clips from each of the 11 games. Game play clips, instead of live game play, were used for several reasons. First, ad density and placement varies by game, and we wanted to ensure that each game the subjects engaged with had reasonably comparable amounts of exposure to advertising. Additionally, hard-core gamers are also spectator gamers, spending a great deal of time watching game play when not actively playing. Finally, biophysical measures are easily affected by various stimuli, and reducing a participant’s physical activity is one means to control for extra noise in biophysical signals. All game play clips were shown in a random counterbalanced order to account for the time at which an ad was seen. After viewing each clip, participants were asked to fill out a brief questionnaire inquiring about their most and least favorite moments in each video. Finally, after viewing all the clips, participants were asked to identify as many brands as they could remember from the videos. A list with both real and false brands was provided to facilitate the brand recognition task. GENERAL FIND INGS Several general findings were developed from the study. Primarily, these findings validate the research method, in addition to demonstrating broad behaviors associated with exposure to in-game advertising. First, the time a video was shown did not affect the level of physiological engagement with a video. It is important to balance exposure to the game play videos and advertisements to control for users who might become disinterested with the study prior to completion. Disinterest with the study, and not necessarily the content, can artificially impact the physiological measures recorded to calculate the QPI, especially with material presented at the end of the study. In this study, participant reactions to videos were consistent regardless of when they were presented. In other words, a video was just as engaging (or disengaging) when it was shown to a participant first, last or somewhere in the middle. Second, participants’ physiological reactions and the resulting QPI calculations were consistent among the most and least engaging videos. Consistent QPI scores for the extremes of the engagement spectrum provide early indication that the QPI is a consistent and reliable measure of engagement. Third, for 90% of participants, brands were remembered at a rate greater than chance, which demonstrates actual recognition based on their exposure to in-game advertising. At the core of this study is the hypothesis that in-game advertising promotes brand recognition, and our results confirm this hypothesis.
  • 11. Copyright © 2009, One to One Interactive www.onetooneinteractive.com 10 I n s i g h t S : : In the following sections, we summarize the findings from this study under the headings of the primary insights derived from analysis of the QPI, eye tracking and interview data. Insight 1: More Recent Ads are More Readily Remembered Exposure to in-game advertising is largely directed by the forces of frequency and recency. Frequency refers to how often an ad is delivered to the player during their gaming session. With some games, impressions might be delivered every couple of seconds, while in other games ads are delivered more sporadically every few minutes. Analyzing for frequency and recency, we discovered that recency has a more potent effect on brand recognition for in-game advertising. The majority (80%) of our research participants remembered all of the ads from the second half of each video clip. This effect holds true even in the earliest game play clips shown to a participant. Additionally, Figure 11 demonstrates that while only 12% of brands participants remembered were shown early in their game play clips, a striking 88% of remembered brands came from the end of game play clips. Furthermore, QPIs tended to be higher towards the end of a game play session (where more brands were remembered), which lends further credibility to the association between heightened physiological engagement and future brand recognition. FIGURE 11: Recency Effect for In-Game Advertising. Brands displayed later in video clips were more likely to be remembered and correspond to a higher QPI. Average 12% .23 88% 1.26 % of Early Brands Rememb ered Early QPI % OF LA TE BRA NDS RE MEMBERED LA TE QPI
  • 12. Copyright © 2008, One to One Interactive www.onetooneinteractive.com 11 This finding is consistent with the peak-end theory of memory, which states that once a memory moves from immediate short term memory, people remember the peak (best) experience and the end experience in the most accurate detail (Kahneman, 1999). A combination of the information density of video games and the length of game play sessions (30 minutes or greater) may limit the active recognition of brands to game locations located at the peak or end of game play. Placing ads in terminal game play locations, such as menus, finish lines, save points, etc., is one strategy for maximizing the strong recency effect discovered in this study. Figure 12 demonstrates an example of a terminal in-game ad in Guitar Hero III. Pontiac is highlighted in the background of the stage during the final seconds of the song. A strong Pontiac logo is one of the final images seen by the player and thus more likely to be remembered past the short term. FIGURE 12: Recency Effect, Guitar Hero III. The Pontiac logo is prominently displayed at the end of the song.
  • 13. Insight 2: Highly Visible Placement Compensates for Low Brand Knowledge In-game advertisements with the most prominent visual placements were remembered more frequently than less prominently placed ads by those with limited knowledge about the sport depicted in the game. High knowledge about a sport entails knowledge about the brands and sponsors associated with that sport. This brand knowledge barrier can be overcome by increasing the visual prominence of the advertisement. As an example from this study, most participants reported little to no knowledge about car racing. However, racing brands were among the most remembered by all participants. The brands that were most often remembered benefited from particularly strong place-ment as large, central banners (which were often in terminal locations) or as smaller ads affixed to objects that were constantly in view, such as the race car itself. Not surprisingly, the visually prominent locations accounted for the most eye gazes and views from the eye tracking data. Visually prominent ads are seen and remembered, even in fast paced game play. Figure 13 and Figure 14 offer two examples from the study that demonstrate successful, visually prominent ad placement. A large, clear Potenza banner is seen in Figure 13 at the start/finish line of the racetrack. Players start the race under this banner, pass through it on every lap and end their course under the banner. Potenza was one of the most remembered brands presumably because of its unique position as both a terminal and frequent advertisement. Figure 14 displays a Subaru logo on the back of a blue Subaru race car. Even though the advertisement is relatively small as a percentage of the overall display, it is easily remembered due to its fixed position on the player’s primary object of focus. As evidenced by the eye tracking footage, the Subaru ad was the most viewed ad of any in the study due to its fortunate placement. Copyright © 2008, One to One Interactive www.onetooneinteractive.com 12 FIGURE 13: Prominent Ad Placement, Project Gotham Racing 4. The Potenza logotype is prominently displayed in the center of the screen.
  • 14. Insight 3: Brand Knowledge Compensates for Low Ad Visibility As an inverse to Insight 2, knowledge about a brand increases recognition and recall when the advertisement is placed in a location with limited visibility. Ads with limited visibility were more readily remembered in games which depicted sports most familiar to the participants. Even though eye tracking footage shows fewer eye gazes for ads with limited visibility, the brand recognition was as high as visually prominent ads for participants with high knowledge about the sport. Figure 15 and 16 highlight two examples from the study where advertisements with limited visibility were remembered by participants with high knowledge and exposure to the sport. In Figure 15, a Honda ad is displayed on the left side of the screen; however, the iconic Honda logotype is mostly obscured by other in-game objects. Figure 16 shows two soda machines on the right hand side that feature the Sprite logo. In both cases, participants familiar with tennis or basketball successfully identified the brands even though the advertisements were small, peripheral, and even obscured. Copyright © 2008, One to One Interactive www.onetooneinteractive.com 13 FIGURE 14: Prominent Ad Placement, Sega Rally. The Subaru logotype is fixed to the back of the player’s car and is always on screen.
  • 15. Insights 2 and 3 together lead to the conclusion that, like most advertising, it is important to understand the existing relationship between the brand and the consumer. Advertising a brand unknown to the game’s audience will require more prominent placement in order to be effective and vice versa. The extent to which game players do or do not exclusively play games that represent their real world interests is largely unknown, so, as an example, it is up to advertisers to determine whether or not consumers playing the latest football video game are also real-life football fans familiar with brands commonly associated with football. Copyright © 2008, One to One Interactive www.onetooneinteractive.com 14 FIGURE 15: Limited Ad Visibility, VirtuaTennis. The Honda logotype, while pushed to the side, was noticed by participants who rated the highest on knowledge about tennis. Honda is a regular sponsor of tennis events.
  • 16. Insight 4: Engagement and Brand Recognition Are Positively Linked This study discovered a developing association between a player’s heightened physiological engagement and the ability to correctly identify brands from their exposure to in-game advertising. Inversely, negative or limited engagement with a game had an adverse impact on player ability to remember brands. Figure 17 shows a developing trend between an increase in physiological engagement (evidenced through the QPI measurement) and brand recognition. In this study, 42% of brands remembered came from more engaging (QPI > 1) games, whereas only 30% of brands remembered came from games with average engagement levels (QPI < 1). As with the recency effect detailed in Insight 1, peak-end memory theory supports the early association between engagement and brand recall. Peak experiences are likely to be the most engaging and therefore have the strongest and most accurate residence in memory, making brands associated with those moments more likely to be successfully recognized and recalled. Unfortunately, identifying engaging moments within games in which to place advertising is a difficult matter. The exact qualities of what makes a given game experience engaging to one person instead of another are unknown. Only thorough, primary research into player engagement with anticipated game titles may help in the media buying process, when the goal is to build brand associations through peak experiences. Copyright © 2008, One to One Interactive www.onetooneinteractive.com 15 FIGURE 16: Limited Ad Visibility, NBA Street. Sprite logos in the edges of the screen were consistently remembered by participants who rated the highest on knowledge about basketball. Sprite is a regular sponsor of NBA events and games. Average 42% 1.08 30.15% 0.87 % Brands FROM ENGAG ING GAMES FIGURE 17: Recency Effect for In-Game Advertising. Brands displayed later in video clips were more likely to be remembered and correspond to a higher QPI. AVG. QPI ENGAG ING GAMES % Brands FROM BASE GAMES AVG. QPI BASE GAMES
  • 17. Insight 5: Context-Appropriate Ads Build Positive Brand Associations Context-appropriate advertisements, which constitute the majority of those in our game play clips, were universally rated as a positive aspect for each game in our study. Advertisements which support and extend the game world and provide more oppor-tunities to create connections between the game and reality positively impact the gaming experience, thereby facilitating positive brand associations with game players. All study participants encouraged the use of context appropriate ads as a means for increasing the realism of the game world. As one player stated, “It wouldn’t be sports without ads.” However, advertisers participate in the fine line of balancing game play and fun with realism. As more real world ads enter game worlds, the perceived realism of the world potentially increases. As realism increases, pressure is placed on gameplay rules and mechanics also to behave more realistically. If players perceive too great a disconnection between the realism of the depicted environment and the gameplay rules and constraints, the game becomes absurd. For example, in the study, the two participants most knowledgeable about racing stated that the city streets in Project Gotham Racing 4 (Figure 18), carefully recreated based on New York City complete with a variety of real world brands, were too real, in the sense that they disrupted the game’s fantasy that one would actually be able to race on New York streets. It would be more plausible to race through a city’s streets if they are distanced enough from real life in some way, such as stylization, abstraction, etc. Advertising is not, of course, solely responsible for the negative impact of realism experienced by the participants, but advertisers should be aware of the potential for their advertisements to change the game experience in a variety of ways, not all of them beneficial or obvious. Copyright © 2008, One to One Interactive www.onetooneinteractive.com 16 FIGURE 18: Fine Line of Context In/Appropriate Advertising, Project Gotham Racing 4. Several participants commented that the almost excessive amounts of real world branding inside the racing game made the tracks feel unreal because it’s not possibleto race on real streets like the game depicts.
  • 18. Copyright © 2008, One to One Interactive www.onetooneinteractive.com 17 Conclusio n The findings of this report suggest that in-game advertising can be highly effective, even among players who profess little to no pre-existing knowledge about brands they see in-game. Visual placement and frequency are critical in reinforcing brand recognition. Identifying strategic visual locations for ads, rather than slapping them onto any visible surface in-game, is paramount for achieving success with in-game ad campaigns. However, a balance must be maintained between utilizing the best visual locations for advertising and not breaching the barrier of player-perceived context appropriateness. The expectations for in-game advertising are high, but the ability to meet and measure those expectations is challenged by the very nature of video games. Video games, more so than any previous media, are highly immersive, interactive, and visually dynamic media, and accordingly their cognitive and physiological demands make the evaluation of in-game advertising unusually difficult. Metrics based on impressions and screen time may no longer be relevant or helpful when distributing advertising in the latest generation of highly immersive digital games. Instead, as this report demonstrates, in-game advertising may be better measured in terms of player engagement and context appropriateness. Positive links between user engagement and brand association are constantly developing; this report provides early evidence that positive physiological engagement leads to increased brand recognition. Overall, the chief finding in this report may be the affirmation of the importance of conducting primary research to quantify player engagement with appropriate game titles in order to facilitate the media buying selection process and ensure both higher brand recognition as well as improved acceptance of in-game advertising among players. References 1. Anderson, N. (2006). Following the money: how Subway ads ended up in Counter-Strike. Retrieved August 3, 2008 from: http://arstechnica.com/news.ars/post/20060116-5985.html 2. Entertainment Software Association. (2008). Essential Facts about the Computer and Video Game Industry. Retrieved August 3, 2008 from: http://www.theesa.com/facts/gameplayer.asp 3. Kahneman, D. (1999). Objective Happiness. In D. Kahneman, E. Diener, & N. Schwarz, Well-Being: The Foundations of Hedonic Psychology (pp. 3-25). New York: Russel Sage 4. PriceWaterhouseCoopers. (2007). Global Entertainment and Media Outlook: 2007-2011 5. Yankee Group. (2007). Advertising and Games: 2007 In-Game Advertising Forecast
  • 19. amplif ying USER engagement New knowledge about human behavior brought to light by social and neuroscience has fundamentally called into question the old mental models of how advertising and marketing work. Gone is the notion that consumers make decisions in a linear think-feel-do way and behavior is guided by rational-only principles. Instead, memories, emotions, associations, and thoughts play a primary role in how individuals relate and ultimately engage with brands. OTOinsights is a primary research offering that is breaking new ground in neuro-marketing to offer clients advanced and scientific levels of insights into how their consumers engage with them across the landscape of new media channels. To learn more about OTOinsights, visit www.otoinsights.com Complete One-To-One So lutio ns for Brands, Agencies, and Publishers OTOinsights is a One to One Interactive company. Established in 1997, One to One Interactive is the first enterprise to assemble a complete solution for brands, agencies, and publishers executing one-to-one marketing strategies. By bringing together one of the nation’s leading digital marketing agencies, the world’s most comprehensive portfolio of permission marketing platforms, unique performance-based social media networks, and cutting-edge neuromarketing research techniques, the companies of One to One Interactive build informed and creative customer/constituent strategies on the belief that digital media’s ability to enable engaging one-to-one dialogues is the future of marketing. To learn more about One to One Interactive, visit www.onetooneinteractive.com OTOinsights 529 Main Street, Charlestown, MA 02129 617.425.7300 www.otoinsights.com info@otoinsights.com Copyright © 2008, One to One Interactive www.onetooneinteractive.com 18