May 4, 2006 3:08 PM PDT
Microsoft makes Massive bet on in-game ads
As expected, the software maker announced it is buying Massive, a company that serves up advertising into video games.
"That Massive team will be joining Microsoft and the MSN group," said Robbie Bach, president of Microsoft's entertainment and devices group, speaking at the MSN Strategic Account Summit here. "They will become a key part in what we are doing in this space."
The financial terms of the deal were not provided.
Bach said that video game advertising is a potentially great opportunity, but also must be done carefully.
"Make sure whatever you do doesn't interfere with the game playing experience," he said. "Do not interrupt someone when they are gaming. It is a very immersive experience."
But he said, if you put the ads in the game, the ad message can be very effective.
"They get it, and they may not even know they got it," Bach said.
The announcement of the deal, which was reported last week by The Wall Street Journal, was timed to coincide with Microsoft's advertiser conference, which ends Thursday.
Earlier in the day, the software maker gave details of plans to transform its new AdCenter engine from a paid search tool into a vehicle that can one day deliver all manner of advertising into Web sites, video streams and mobile devices.
The AdCenter product is still in its infancy, though. Last quarter, Microsoft saw its revenue per search fall as it switched more of its volume onto AdCenter and away from Yahoo's engine. Microsoft said it is now using adCenter for 100 percent of its U.S. paid search ads.
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While some advertising may add to in-game realism (a modern citiscape with Nike, Coke and Sony billboards is arguably more 'realistic' than one with non-esistent products), its a short road to intrusive and annoying. Just look at TV.
If ads are going to appear in games, they need to be controlled by the same rules that govern product placement in films. I don't want my lvl 60 Ninja/Warrior/Mage questing for the 'Tylenol Helm of Healing' or the 'Preperation H Pants of Comfort.'
Typical of MS. How about creating a game so damn good, people won't might paying a bit more? Oh wait, this is MS we are talking about.
In-game advertisement definately has quite a large potential, if done discretely and eloquently.
Yeah right.
They're in the face of users.