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In-game advertising (IGA) refers to advertising in computer and video games. IGA differs from advergaming, which refers to a game specifically made to advertise a product.

The IGA industry is large and growing.brown In 2009, spending on IGA was estimated to reach $699 million USD and is anticipated to grow to $1 billion by 2014.

The earliest known IGA was the 1978 computer game Adventureland, which inserted a self-promotional advertisement for its next game, Pirate Adventure.^[4] The earliest known commercial IGA occurred in 1991 when a spot for Penguin biscuits appeared in James Pond - RoboCod.

IGA can be integrated into the game either through a display in the background, such as an in-game billboard or a commercial during the pause created when a game loads, or highly integrated within the game so that the advertised product is necessary to complete part of the game or is featured prominently within cutscenes.Due to the custom programming required, dynamic advertising is usually presented in the background; static advertisements can appear as either. One of the advantages of IGA over traditional advertisements is that consumers are less likely to multitask with other media while playing a game, however, some attention is still divided between the gameplay, controls, and the advertisement.

http://en.wikipedia.org/wiki/In-game_advertising

In-game ads to top $7.2bn by 2016

by James Batchelor
Thursday, September 15th 2011 at 10:52AM

Revenue from in-game advertising is expected to increase in the next few years, but are advertisers making the most of our medium?

The new Advertising and Video Games report by research firm DFC Intelligence predicts that the in-game advertising market will reach $7.2bn globally by 2016, according to IndustryGamers.

The report added that the North American in-game advertising market was worth $1bn in North America last year, and is expected to reach $2bn by 2014.

This figure also includes around-game advertising - such as banners around browser-games - and advergames, which are titles used to advertise a product, organisation or viewpoint.

However, DFC claims the full potential of this advertising channel is not being realised.

"Video games have reached beyond adolescent males into a mainstream entertainment medium that touches every segment of the population," said DFC analyst and the report's lead researcher Michael Goodman.

"Despite this, advertisers continue to under utilise video games as an advertising vehicle. This is slowly changing and more games go online.

"Video games, with their high degree of immersion and interactivity, are a natural solution for building brand awareness and influencing purchase decisions."