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WSJ on monetizing ad space in videogames
by Ian Bogost April 8, 2004

The Wall Street Journal published an article on Nielsen's new Video Game Ad Tools (paid registration required). Update: you can also read about it via Activision's press release.

Nielsen Entertainment and Activision have rolled out a suite of new tools that promise to track the number of gamers who see ads in video games. The tools reflect Madison Avenue's growing interest in video games as ad vehicles, especially in the 18-34 male demographic.  

The article points out that most in-game ad deals are barter-based marketing arrangements. Activision and Nielsen want to create a "rate card" and do impression tracking for product placement and in-game ads.

It's good to see more dedication to this issue, but I wonder if Nielsen and Activision are still putting the cart before the horse. Previously on WCG we've talked about how in-game ads work (1, 2). Do brand impressions have the same effect in-game? As you can tell, my unscientific opinion is "hell, no." Still, the ad biz has always been replete with voodoo. As soon as that CPM card comes out, I fear this question will become one for us navel-gazers.

Comments (6)

There's also an article on it here.

Quote: According to the survey, heavy gamers are particularly enthusiastic about product integration with more than half (52%) liking games to contain real products, and a huge majority (70%) feeling that real products make a game more "genuine."

I think I've had the same impression of games with ads for real products, but I guess I have problems with the idea of "genuiness" in games. I mean, what's "authentic" about the Powerade machines in Enter the Matrix? They were made after the game (right?) Partly a simulacra-like gesture to the Baudrillardian premise of the first movie, I guess.

Anyway, my point is just that I don't think authenticity is much of a gauge of a game's quality (as the survey implies) except in sports games. Nielsen's research would be more interesting if they divided it into game types. I mean, most of my friends who play the Madden variety of games are rather different from my friends who play Jedi Knight or Halo.

So the fact that 70% of those surveyed apparently wanted authenticity in their games might suggest that most of these are Sports-gamers, and I think (unscientifically, of course) that the brand impressions created in Madden 2004 are pretty much the same as you get from watching a game on TV.

Zach -- initially I was ready to agree with your point about sports games, but I wonder... are we subject to the same phenomenal impressions when working to convert a pass versus just watching someone else do it? Is there a pathology of distance (pace Nietzsche) that makes us more receptive to secondary images in third-person media, or rather less so in first-person media?

That said, I know there are a lot of broadcast-style replays in games like Madden 2004, and I do agree that those probably serve up the same impressions as TV, mostly because they are built purely for mimesis.

Ian Bogost on April 9, 2004 3:31 AM

I admit I don't often play Sports Games, but it seems that--taking the first-person/third-person route--the advertising still works only in third-person mode whether your playing a game or watching a game.

The act of working out a pass requires concentration, involvement, etc. and any advertising that appears in that will be distracting and work against the possibility of success. Seeing the fruition of ones efforts, then -- creating a successful, seamless sequence--one can relax and enjoy the "smoothness" of the moment in which advertising can again appear unobtrusive or, as the survey suggested, enriching to that "smooth" moment.

Also, most sports gamers I know tend to play in large groups of which only 2 are playing at a time. So most of the people there are still spectators.

Again, I'm not a sports gamer, so some of my resistance to this is territorial. I would hate to see an ad for Corn Pops in Halo, for example.

zach> Also, most sports gamers I know tend to play in large groups of which only 2 are playing at a time. So most of the people there are still spectators.

This is a really good point. I suspect the sports game market is big enough that it alone would justify this opportunity for advertisers.

zach> I would hate to see an ad for Corn Pops in Halo.

I don't think your fear is unfounded. It's probably not Corn Pops, but Red Bull, but still...

Ian Bogost on April 9, 2004 3:52 PM

I'm inquiring about an opportunity for some new talent on the up and coming halo 2 circuit We are called Team ISAI we've been around since halo one and have recently placed top 5 in MLG Houston and are currently looking for sponsorship to upcoming MLG (major League Gaming) events. We plan on attending MLG Philly and Halo Nationals which only select teams are invited to .But with sponsorship it is a certainty that we can bring More to MLg possibly even winning one in the near furture.We take our gaming seriously and feel that Gaming is a source many companies have not yet tapped and this could lead to a very interesting business venture quite possibly. Beyond that I hope you will consider us and think of us as a small investment.

Thank you for your time .

Chris Hyacinthe aka (Dv8) on June 10, 2005 9:15 AM

Hello. Nice review. I think that best sport wear for every body is adidas. why? Because Adidas is a German sports apparel manufacturer, part of the Adidas Group. Since the 1970 FIFA World Cup with the football Telstar, Adidas has been the FIFA official match ball supplier for every FIFA World Cup and designs the official match ball for every edition of the event.

All my sport boots allways been Adidas. Many teenagers wearing Adidas because this part fashion in some countries, and its part of club culture...