Video Games to Grab $1bn Ad Revenues

19 April 2005

As consumers change the way they watch television, advertisers are casting about for the next big thing.

According to US video game network Massive, advertising within computer games is set to boom in the next five years.

Massive ceo Mitch Davis claims adspend in the medium will top $1 billion (€77m, £52m) by 2010 in the US and approach $2.5bn across the globe.

His predictions are confirmed in part by business technology consultants, the Yankee Group, who say advertising within games will rise to around $800 million by 2009.

More than 33% of that figure will likely be spent on advergaming - in which advertisers create a game around their product - rather than placing the brand into a well-known title.

Says Yankee senior analyst Mike Goodman: "If the audience is disappearing from TV and print becomes less effective ... advertisers need to go where the eyeballs are."

And the eyeballs of the coveted 18-34 year old male audience are increasingly on computer games.

Bluechip advertisers such as Coca-Cola and Nestlé have already contracted to market their brands in virtual landscapes, using billboards, store windows and vending machines.

Data sourced from; additional content by WARC staff