The effect of product placement on persuasion for mobile phone games

Hui-Fei Lin

National Chiao Tung University

Introduction

The emergence of new media and recent changes in modern life have led people to spend less time watching television, listening to the radio, and reading magazines and books (Gardner et al. 2009). In recent years, young consumers have increasingly shifted their interests to alternative forms of entertainment (PRWeb 2012). A recent survey indicated that approximately 70% of people in the United States played video games in 2011 (NPD 2012). In the same way that online and computer games draw the attention of young people, mobile phone games have also become popular among teenagers and young adults. In April 2012, 59% of internet users in the US and United Kingdom reported having played a mobile game at least once in the previous three months (Information Solutions Group 2012). Because increasing numbers of people play mobile phone games, advertising agencies have come to consider this type of media as a new channel for placement advertising for promotional products. Advertisers have begun to embed unique, innovative and interactive advertising in games to effectively reach target audiences (Nelson et al. 2004). Companies such as Coca-Cola have noted this marketing strategy and have significantly diverted advertising funds from television to in-game advertising in an attempt to leverage this trend (Grover et al. 2004). According to a report by Global Industry Analysts (GIA), the value of the global in-game advertising market is rapidly increasing, and is expected to exceed US$2.67 billion by 2017 (PRWeb 2012).