June 2007 Video Game Advertising: Getting to the Next Level

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Video Game Advertising: Getting to the Next Level, June 2007

The use of video games as an advertising medium will grow substantially in the next five years. Worldwide spending on video game advertising will rise from $692 million in 2006 to $1.9 billion in 2011, with half of the spending occurring in the US.

A number of factors are fueling interest in advertising on this medium. A widening audience, especially women and older gamers, the growth of games with online connectivity, and the need for game developers to offset escalating production costs will be the primary drivers of growth.

While it is generally true that more "hardcore" gamers skew younger and male, research released by PopCap shows that casual gamers are overwhelmingly female and older.

An Ipsos study commissioned by the Associated Press and AOL found that 30% of gamers spent less than five hours per week watching television while 33% spent more than four hours per week playing video games. This implies that many players may be devoting time to video games at the expense of television.

As this shift in consumer behavior continues, advertisers are likely to begin tailoring their budgets to this new reality.

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