In-Game Advertising: Effectiveness and Consumer Attitudes

In-Game Advertising: Effectiveness and Consumer Attitudes

Mark Lee (RMIT University, Australia), Rajendra Mulye (RMIT University, Australia) and Constantino Stavros (RMIT University, Australia)
DOI: 10.4018/978-1-60566-406-4.ch018
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This chapter reports a recent research study involving a sports video game which sought to provide an overview on the use of in-game advertising, consumer attitudes towards the practice, and an empirical test to assess its effectiveness in terms of brand recall and recognition. Intervening variables such as attitude towards advertising in general and in-game advertising in particular, brand familiarity, and experience with gaming was also considered. A sample of 32 participants was asked to engage in video game play of a relatively new sports game and complete a series of measures examining attitudes, recall and recognition of in-game advertising. Findings supported all hypotheses with the exception of the hypothesis predicting a positive relationship between attitude toward in-game advertising and advertising effectiveness in terms of recall and recognition. User factors such as age, game experience, game likeability, and item specific factors such as characteristics of the display panel and relevance of the product to the game were found to play an important role in improving advertising effectiveness. Contrary to earlier studies, attitude towards in-game advertising was lower than expected, especially amongst the experienced game players.
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Decreasing use of traditional media by consumers and increasing advertising noise requires contemporary marketers to constantly seek new communication channels in order to achieve their promotional objectives. While marketers are continually experimenting with a variety of mediums, video games are emerging as a potential breakthrough for advertising placement because of their exponential growth and distinctive advantage over traditional mediums (Alpert, 2007, Gwinn, 2004; Hyman, 2006; Molesworth, 2006; Nelson, 2002; Nelson, Keum, & Yaros, 2004; Nelson, Yaros, & Keum, 2006; Schneider & Cornwell, 2005; Yang, Roskos-Ewoldsen, Dinu, & Arpan, 2006)

Worldwide sales of video games are expected to surpass the sales of the recorded music industry (Alpert, 2007; Young, 2004) with some experts forecasting sales to reach $48.9 billion in 2011 (Szalai, 2007). Individual game companies are already grossing annual sums in excess of the entire movie industry box office for the same period. The reach of video games has also experienced exponential growth. Surveys in the United States estimate that 68% of men aged 18-34 and 80% of men aged 12-17 have a video games console in their home (Cuneo, 2004; Massive-Incorporated, 2007). These surveys report that the young male segment spends on average two hours per day playing video games, with American males reporting they played video games more frequently than they watched television. The increasing trend of video games as a recreational pastime is likely to come at the expense of television viewing, a medium traditionally used by advertisers to reach target audiences.

The revenue from the placement of brands and products within video games is expected to reach $850 million in 2011, and is predicted to eventually mature in to a $5 billion industry (Wolf, 2007). Game developers have also been quick to utilise the additional revenue stream that in-game advertising brings to reduce the burden of increasing development costs (Gaudiosi, 2007; Gwinn, 2004; Hyman, 2006). Gaudiosi (2007) notes opportunities for convergence were created with the rapid proliferation of internet enabled game consoles, which were selling at a rate of 500,000 units per month in 2007. These opportunities have not gone unnoticed. Major industry brands such as Microsoft and Google have entered the industry through acquisition of large scale in-game advertising brokerage agents Massive Inc and Adscape Media respectively (Gaudiosi, 2007). Equally impressive are the reported marketing successes of brands that have made use of this medium (Lindstrom, 2001). For example, Red Bull, a high energy drink, was able to gain invaluable exposure to its target market via the hugely popular futuristic racing game Wipeout, while the Mitsubishi Lancer Evo found a market in gamers after it was introduced to the United States following a petition to the car’s manufacturer by players of the Grand Turismo driving game (Nelson, 2004).

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Editorial Advisory Board
Table of Contents
Graham Cuskelly
Nigel Pope, Kerri-Ann L. Kuhn, John J.H. Forster
Chapter 1
John J.H. Forster
One of the major forces shaping modern sport is the application of digital technology. This is transforming the mass consumption, distribution... Sample PDF
Digital Technologies and the Intensification of Economic and Organisational Mechanisms in Commercial Sport
Chapter 2
Sean Reilly, Peter Barron, Vinny Cahill, Kieran Moran, Mads Haahr
The area of computer-augmented sports is large and complex and spans several disciplines. This chapter presents a general-purpose taxonomy of... Sample PDF
A General-Purpose Taxonomy of Computer-Augmented Sports Systems
Chapter 3
Veljko Potkonjak, Miomir Vukobratovic, Kalman Babkovic, Branislav Borovac
This chapter relates biomechanics to robotics. The mathematical models are derived to cover the kinematics and dynamics of virtually any motion of a... Sample PDF
Dynamics and Simulation of General Human and Humanoid Motion in Sports
Chapter 4
Brendan Burkett
Monitoring of player activity within a competition is currently a reality within some high performance sporting teams, and the demand and level of... Sample PDF
Technologies for Monitoring Human Player Activity Within a Competition
Chapter 5
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Through the advancement of electronics technologies, human motion analysis applications span many domains. Existing commercially available magnetic... Sample PDF
Video-Based Motion Capture for Measuring Human Movement
Chapter 6
Amin Ahmadi, David D. Rowlands, Daniel A. James
Tennis is a popular game played and viewed by millions of people around the world. There is a large impetus for players to improve their game and... Sample PDF
Technology to Monitor and Enhance the Performance of a Tennis Player
Chapter 7
Daniel A. James, Andrew Busch, Yuji Ohgi
The testing and monitoring of elite athletes in their natural training and performance environment is a relatively new area of development that has... Sample PDF
Quantitative Assessment of Physical Activity Using Inertial Sensors
Chapter 8
Volker Wulf, Florian ‘Floyd’ Mueller, Eckehard F. Moritz, Gunnar Stevens, Martin R. Gibbs
Augmenting existing sports experiences with computing technology is increasingly gaining attention due to its potential for performance enhancement.... Sample PDF
Computer Supported Collaborative Sports: An Emerging Paradigm
Chapter 9
Florian ‘Floyd’ Mueller
Recent advances in computing technology have contributed to a new trend that merges digital gaming with physical sports activities and combines the... Sample PDF
Digital Sport: Merging Gaming with Sports to Enhance Physical Activities Such as Jogging
Chapter 10
Lauren Silberman
Just at the moment when gaming has achieved broad cultural acceptance, a new way of using commercial sport video games is emerging, which adds a new... Sample PDF
Double Play: How Video Games Mediate Physical Performance for Elite Athletes
Chapter 11
Donald P. Roy, Benjamin D. Goss
The explosion of fantasy sports and the dearth of research about it create a need for investigation in this relatively new form of sport... Sample PDF
A League of Our Own: Empowerment of Sport Consumers Through Fantasy Sports Participation
Chapter 12
Jean-Pierre Dussault, Michael Greenspan, Jean-François Landry, Will Leckie, Marc Godard, Joseph Lam
We introduce pool and its variants, and describe the challenges of computationally simulating the game to create a robot capable of selecting and... Sample PDF
Computational and Robotic Pool
Chapter 13
Scott Bingley, Stephen Burgess
Sport plays a major part in the Australian psyche with millions of people participating every year. However organised sport at the local or social... Sample PDF
A Framework for the Adoption of the Internet in Local Sporting Bodies: A Local Sporting Association Example
Chapter 14
Anthony K. Kerr
Globalisation and advances in communications technology have greatly expanded the potential marketplace for professional teams, especially for those... Sample PDF
Online Questionnaires and Interviews as a Successful Tool to Explore Foreign Sports Fandom
Chapter 15
Gaoqi He, Zhigeng Pan, Weimin Pan, Jianfeng Liu
Virtual reality and the Olympic Games Museum are used to create a virtual digital Olympic museum (VDOM). This is available solely through the medium... Sample PDF
Virtual Digital Olympic Museum
Chapter 16
Kerri-Ann L. Kuhn
A multi-billion dollar industry, electronic games have been experiencing strong and rapid growth in recent times. The world of games is not only... Sample PDF
The Market Structure and Characteristics of Electronic Games
Chapter 17
Beth A. Cianfrone, James J. Zhang
This chapter introduces the new and unique sport promotional format of sport video game sponsorships and in-game advertising. Information on the... Sample PDF
Sport Video Game Sponsorships and In-Game Advertising
Chapter 18
Mark Lee, Rajendra Mulye, Constantino Stavros
This chapter reports a recent research study involving a sports video game which sought to provide an overview on the use of in-game advertising... Sample PDF
In-Game Advertising: Effectiveness and Consumer Attitudes
Chapter 19
Monica D. Hernandez, Sindy Chapa
The authors’ study examined factors affecting Mexican adolescent’s memory of brand placements contained in advergames. Specifically, two concerns... Sample PDF
The Effect of Arousal on Adolescent's Short-Term Memory of Brand Placements in Sports Advergames
Chapter 20
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This chapter presents marketers, sporting management and sports organizations with a technique for analyzing consumer schemas associated with... Sample PDF
Schemas of Disrepute: Digital Damage to the Code
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