Showing posts with label in-game. Show all posts
Showing posts with label in-game. Show all posts
Casual Mobile Advergames - For Cats!
Puss In Boots, boot up your tablet - Friskies has released not one but three Games for Cats advergames playable in any tablet browser thanks to the magic of HTML5/CSS3. The games don't scale down to the phone screen size, though, so smaller cats are out of luck. The games are Cat Fishing, Tasty Treasures Hunt, and Party Mix-Up. Cats like.
Now waiting for a study on the advergames's effect on feline brand recognition.
Amex Centurion Statue in Farmville
Continuing to keep an eye on brands in Farmville: American Express is letting its card holders to redeem reward points for Zynga's virtual goods (and Citi has just followed). Amex is also offering a special Centurion statue that will double the mastery for players' crops in Farmville for one week.
Previous promos in Farmville: Megamind, Farmers Insurance, McDonald's, peanuts.
Chex Quest, The First Game Ad Mod
This is a TV spot for the 1996 Chex Quest, which I think was the first time when a standalone mod of a popular game (Doom) was used to promote a product. It was distributed on a CD in more than six million of Chex cereal boxes, attracted a lot of fans, and apparently won an EFFIE for its effectiveness. I couldn't find the game on the list of winners on the official site, but one of its creators claims the game was responsible for a 248% lift in sales. The game was developed by Digital Café in Minneapolis, an early interactive agency co-founded in 1991 by Dean Hyers and Michael Koenigs. You can still download the game and its 2008 sequel here. If you'd rather watch than play, here's a five-minute speed run through the game.
No You Can't: Megamind Promo in Farmville [Screenshots]
DreamWorks has just launched a 24-hour Farmville promo for its Megamind movie scheduled to premier tomorrow. The promo unfolds along the scenario similar to an earlier campaign by McDonald's: the hero appears on your neighbors list, he owns a farm, and for visiting it you get two items -- a useful crop booster Mega-Grow and a useless floating decoration (McDonald's gave away a coffee speed boost and a decorative balloon while Farmers Insurance balloon prevented crops from withering). The "No You Can't" balloon -- a nod to the iconic Shepard Fairey poster and Obama's 2008 slogan -- is a nice touch that's also ironic in light of yesterday's elections.
As far as I can tell, nothing else on the farm is clickable.
Reuters says you can buy movie tickets from the promo; the link to the tickets is actually outside of the game area and it goes to a tab on Megamind's Facebook page.
Farmers Insurance Insures Farmville Farms
Saw this blimp on Farmville's spash screen today. It turns out that "The Farmers [Insurance] in-game integration will use the likeness of its Farmers Insurance Airship, a 246-foot long Zeppelin. When players place the Farmers Airship on their farm, they receive free "wither protection" for the crops on their virtual farm. In a nod to the security that Farmers Insurance offer its customers, this protection means players crops won't wither for the 10 days of the promotion."
Might be too perfect of a fit. It took me a while to register that Farmers is an actual insurance company and not a Farmville in-game reference.
Farmers's Facebook page says theirs is the "largest Zeppelin in the world", and the company raffles out rides.
This is me in my blueberry garden, waiting for the airship to arrive. I'll park it next to my McDonald's balloon.
Update: It's here!
Play Zork on Kindle
Point your Kindle's browser at portablequest.com and relive the classic text-based adventure -- a versatile genre also playable via Twitter, with spoken commands on the phone, or on the iPods of yore.
-- via Gamepr0n via Suncho
McDonald's on Farmville - Screenshots
Do you know how many bloggers jumped on the "Old McDonald('s) Had a Farm(ville)" thing for their headlines today?
Anyway, here are some screenshots of this one-day promo. Visit the McD's farm from your neighbor bar today and get two prizes - a cup of coffee that speeds you up and a pretty hot air balloon that takes up space and does nothing I could figure out. You can get the gifts on the market, too. A fan blog had noticed many of these items on the server a couple of weeks earlier.
Anyway, here are some screenshots of this one-day promo. Visit the McD's farm from your neighbor bar today and get two prizes - a cup of coffee that speeds you up and a pretty hot air balloon that takes up space and does nothing I could figure out. You can get the gifts on the market, too. A fan blog had noticed many of these items on the server a couple of weeks earlier.
From GAP to ZIP
Instead of doing whatever it is that they are doing with their logo, I wish GAP would become ZIP for a week in a nod to the huge audience of Grand Theft Auto that has ZIP stores in the San Andreas installment. Sort of how 7-11 became Kwik-E-Mart.



There's More To Games Than High Scores
As you are reading through Adweek's special issue on gaming and advertising, I thought I'd point towards an April post by Russell Davies who wrote that there's more to gaming than badges and leaderboards. "We're going to encounter a bunch of crappy sorta-games foisted on us. Those rudimentary game schemes are going to be rolled out by everyone with a rewards card, CRM system, loyalty scheme or something that can be plotted on a graph. And they're going to be no fun. They're going to drive us all mad. This'll either lead to wholesale abandonment of the whole idea or a recognition that proper games design is necessary."
The Evolution of Advertising in Sports Video Games
This is a rerun of a series of blog posts I did back in April 2006 while researching things for my grad thesis (bonus: an unpublished chapter on history). It documents the evolution of advertising in sports video games published by Electronic Arts between 1983 and 2006. Since many AdLab readers probably haven't seen it, and the stuff is pretty fascinating, I thought I'd repost it. The original raw research notes follow. Some links may since have expired.
[Also see 19 Tips for In-Game Advertising, a case study on Burger King's games, the illustrated history with videos, and a lot of other good stuff posted here on AdLab about in-game advertising.]
I am writing the chapter on history of in-game advertising and decided to track down the evolution of sports games. I picked games made or published by Electronic Arts because the company has some of the most popular franchises, the games sold well, and also because these days the company seems to have a structured approach to selling ad space in their games. Below are screenshots from EA's sports games made during the two decades between 1983-2006.
[Also see 19 Tips for In-Game Advertising, a case study on Burger King's games, the illustrated history with videos, and a lot of other good stuff posted here on AdLab about in-game advertising.]
I am writing the chapter on history of in-game advertising and decided to track down the evolution of sports games. I picked games made or published by Electronic Arts because the company has some of the most popular franchises, the games sold well, and also because these days the company seems to have a structured approach to selling ad space in their games. Below are screenshots from EA's sports games made during the two decades between 1983-2006.
Renault Puts Electric Cars in Sims 3
Electronic Arts and Renault announced an agreement that will enable players of The Sims 3 to download Renault's electric vehicles into the game. "This Spring, Renault's Twizy Z.E Concept car will be made available to download free of charge [...] within an Electric Vehicle Pack."
Two years ago, Ikea released a Stuff Pack for Sims 2, a year after H&M. I've also seen BP-branded windmills in the most recent SimCity Societies.
Some numbers: "Since its June 2009 launch, The Sims 3 has sold more than 4.5 million copies worldwide to date." Fans have downloaded 130 million copies of player created content that includes Sims, houses, and stories. Nearly 2 million uploads have been made to date to the Sims 3 community site, "including 20 movies each hour. The Sims 3 YouTube Channel is in the top ten most viewed sponsored channels of all time with more than 28 million video views."
-- press release, Joystiq
Lingerie Ads in Second Life

A collection on Flickr, via AdRants.
Also, a Pamela Anderson look-alike Second Life avatar in anaglyph (red-blue) 3D [video].
Book: How To Design Marketing Games

Just got a note about the newly published Game-Based Marketing (on Amazon for around $16), a guide to designing loyalty programs and other game-like marketing programs based on the understanding of gamers' typologies and psychology. Very much look forward to my copy; can't believe it hasn't been written sooner. And if this book sounds like fun to you, check out an excerpt from a book that covers some of the same ground.
Update [March 2011] - I've read the book and posted a review.
Splat! Ads in Violent Games Recalled Better
MIT Tech Review: "A team of European and U.S. researchers found ads displayed along with violent scenes to be more memorable to players than those shown with nonviolent content, even though players spent less time looking at them."
"Those who played a violent version of the game, where the goal was to run down pedestrians, resulting in a blood-splattered screen, demonstrated significantly better recall of advertised brands than those who played the regular version."
Told you someone should've put up billboards in that airport in Modern Warfare II.
"Those who played a violent version of the game, where the goal was to run down pedestrians, resulting in a blood-splattered screen, demonstrated significantly better recall of advertised brands than those who played the regular version."
Told you someone should've put up billboards in that airport in Modern Warfare II.
Take Over Billboards In Google Street View

Wouldn't it be fun to scoop all the virtual billboards on Time Sq?
Two independent reports less than a week apart claim Google considers inserting some kind of advertising into its Street View maps.
CNET last week: "In the presentation, Google tossed out the notion that ads may one day appear in Street View. Those ads would be tied into the listings in the Google Local Business Center and the Google Favorite Places program."
RRW today about Google's new patent: "In this patent, Google describes how it plans to identify buildings, posters, signs and billboards in these images and give advertisers the ability to replace these images with more up-to-date ads. In addition, Google also seems to plan an advertising auction for unclaimed properties."
(Update): One question people seem to have about this is whether there's enough scale to make Street View billboards interesting to advertisers. Probably not so much on the PCs, but I'd say the Street View GPS navigation in Androids could be one application, something like what Dunkin' did with TomTom a few years ago.
(Update 2; Jan 21 '10): People got pretty excited about this news, so much that I got a call yesterday from a Canadian radio asking for a comment. I've learned not to get too agitated about patents -- if all of them came to life, including these from the 19th century, the world would've been a much wackier place. I mean, Sony has patented telepathy, in addition to a bunch of other mind control patents, which is by far a bigger deal than some billboards in some maps.
Would be cool, though, to use Street View with dynamic billboards to build a driving simulator to test billboard readability and effectiveness, though. Here's a driving simulator, and here's a virtual testing service for billboards - now let's just combine the two.
This is yet another twist for a subject AdLab's been covering for years:
- The classic hit: Advertising With Google Maps (2005)
- Microsoft Launches Virtual Earth With Billboards (2006)
- Billboards in Google Earth (2007)
- Time Square in Google Earth (2008)
Gamespot's Awards for In-Game Ads Done Wrong
GameSpot's 2009 "dubious honor" awards for most despicable in-game ad placements, the only award show AdLab faithfully covers every year, are in. And either the Gamespot editors are getting soft, or there wasn't a whole lot of interesting (or annoying) ad stuff going on in games this past year.
The winners are Pepsi machines in Bionic Commando. They don't look really all that horrible (but yes, somewhat out of place in an post-apocalyptic world), and it's not even clear if they are product placements at all.
Gamespot writes: "The game doesn't just feature Pepsi machines--it features multiple machines within a few feet of each other. It doesn't seem likely that the people of the near future will need so many carbonated beverages in such a small area. It's also ridiculous how pristine most of these machines look when surrounded by postapocalyptic debris, as if the Pepsi machines of the future were constructed out of an indestructible alloy while the rest of the world burned to the ground."
But Destructoid says the machines are not a paid placement, but a tribute to the brand by the game's developers. Plus, they dispense free drinks if you shoot them just so.
Other interesting nominees:

T-Mobile's Sidekick phone in Tony Hawk Ride, a title Gamespot gave only 3.5 points out of 10. The reviewer hated the entire game, and the Sidekick controls, while not helping, hardly were the $120 game's biggest problem.

iPhone in Mysterious Island 2.This one isn't actually a placement paid by Apple at all; it's a promo for the related puzzle mini-games available in the App Store:
"One moment you're bungling in the jungle with Jep [a monkey sidekick], and the next you're staring at an iPhone that has popped up out of nowhere. You can't use it, either. It just appears on the side of the screen, sticks around for a little bit, then vanishes. This icon actually indicates that you can port a puzzle out of the PC game to solve on the go with your iPhone, although if you don't own Apple's latest must-have device, this comes off as nothing but an out-of-the-blue product placement."
Dead Body Spam

It's called "dead body spam" or "corpse graffiti": peddlers of virtual gold in World of Warcraft spell out their site's URL with bodies of dead players, a common practice in the game (watch video).

(via)
Advertising in Violent Game Scenes
Having blasted my way through Carmageddon all the way to the streets of San Andreas and Pripyat, I'm no stranger to cartoony violence, but somehow slaughtering helpless civilian crowds wholesale just feels off. This leaked video is from the upcoming Modern Warfare 2 shooter that hits the stores on November 10th and has already broken Gamestop's pre-order records.
You know what would make the scene more realistic? In-game billboards, that's what.
But seriously, wouldn't it be a good spot for an armed services recruitment poster? Here you are, playing a generally good guy infiltrated into a terrorist group that is turning the airport into lasagna. If you are not completely corrupt, you sort of feel bad about the whole thing and maybe even indignant. Aren't you in the right state of mind for a few (sponsored) suggestions of real-life retribution?
On a side note, Activision has been chasing this video off the net since it first leaked last week. Pull out your stopwatches and time how long this one will last. If by the time you reach this post the video is down, it's all over the torrent sites by now, if you are really curious.
Bonus treck: this Russian YouTube clone (called RuTube) has an interesting implentation of in-player ads -- full-size ad frames appear when you pause the playback.
Update (Nov 16): Banned in Russia, ha! All your terrorists are belong to us.
Study: Human Avatars Are Better Salesmen

Furries need not apply
In what seems like ages ago, in June 2006, Harvard Business Review made a huge splash by running a piece on avatar-based marketing (there was even an in-world panel): "The avatar, though, arguably represents a distinctly different “shadow” consumer, one able to influence its creator’s purchase of real-world products and conceivably make its own real-world purchases in the virtual world. At the least, it may offer insights into its creator’s hidden tastes."
Just as I thought everyone's mostly forgotten about Second Life by now, I found this study by two Boston College researchers who recently published a paper on the effectiveness of avatar spokespeople. Their conclusion: "The participants perceive human-like spokes-avatars as more attractive, and players who interact with a human-like spokes-avatar perceive the iPhone advertisement as more informative than those who interact with a non-human spokes-avatar."
The entire Journal of Interactive Advertising is full of cool topics like this; too bad all their stuff is written in that kind of language that takes hours for us layfolk to decipher.
VW To Launch New Model with iPhone Advergame

AdLab's intrepid editor driving against traffic towards advertising future.
AdAge today: "Volkswagen of America is launching the newest-generation GTI exclusively on an iPhone app." The entire launch budget for the new model is estimated $500K instead of the customary $60M, since the game is the only thing VW is doing. Fail or win, this is bound to end up in everyone's PowerPoint decks, so I went in to take a few pictures as a matter of public service.
(Read on)
Massive: "Gamers Like Ads"
GM of Microsoft's Massive: "Our research indicates that most gamers like advertising in the game because it adds to the realism. Imagine playing a Major League Baseball game with no ads behind home plate, next to the scoreboard or on the outfield wall - not very realistic. Now imagine the outfield with up-to-the-minute ads you just saw on television or read in a newspaper - the latest movie release, television show, or a new car model. That is much more realistic."
Funny. But the part about realism is tired. Games are not about realism, games are about immersion and suspense of disbelief, and that should be the benchmark -- whether the ads disrupt the immersive experience.
An interesting comment by a reader of a related ARS article: "In non-sports games, that's only true if you see both competitors ads. It'd be unrealistic to only see coke ads, and no pepsi ads. It'd be unrealistic to only see mcdonalds in a virtual new york and no burger king.
Funny. But the part about realism is tired. Games are not about realism, games are about immersion and suspense of disbelief, and that should be the benchmark -- whether the ads disrupt the immersive experience.
An interesting comment by a reader of a related ARS article: "In non-sports games, that's only true if you see both competitors ads. It'd be unrealistic to only see coke ads, and no pepsi ads. It'd be unrealistic to only see mcdonalds in a virtual new york and no burger king.
Storyboards For the Coke GTA Spot

Am I the last one to find these W+K's storyboards for the famous Coke's Video Game spot, better known as the Coke GTA commercial? They have been sitting there in a nice neat pdf since 2006, when the spot first ran in theaters. You'll see that the spot is missing the final scene from the storyboards, probably to the better.
Free In-Game Advertising Webinar Series

Re-posting the announcement I received from the organizers:
On Wednesday, the MarketKey In-game Advertising Webinar Series kicks off. The series consists of seven sessions throughout October and is free to attend.
Speaking companies include Microsoft Advertising, TNS, IGA Worldwide, Interpret and Linden Lab. The webinars will cover:
1. Demographics, facts and figures – an introduction to the gaming market and in-game advertising
2. Player engagement – they may be playing the game but are they seeing the ad?
3. In-game advertising case study - lead by Microsoft Advertising
4. In-game advertising case study - see how Puma has been integrated into Football Superstars
5. In World Advertising – the potential of virtual worlds for brands and advertisers
6. Advergames and casual games – the power of bespoke branded games
7. The Future of Game Advertising – where will we be in 2 years from now and how will brands develop their multimedia presence?
Register here.
Branded Virtual Clothes on XBox Avatar Marketplace

Spotting some track jackets, shoes and other stuff by Adidas, Quicksilver flipflops, and other branded virtual merchandise on the newly opened Avatar Marketplace for Xbox 360. None of it free; each item costs a certain amount of paid points. Previously available -- other Adidas content.
Create and Sell Your Own Board Games

Creating branded board games -- one other flavor of in-game advertising -- has become much easier. The GameCrafter is like Cafepress for your very own board games: upload the designs, add play money and pawns, and they will print and package everything for you and put it up for sale on their marketplace.
-- via Raph Coster
Earlier:
New Monopoly Edition Comes with Branded Tokens
Game Developer Submits Game of Resignation

A game developer submitted his resignation from a game dev shop by creating, what else, a game. (Play with arrow buttons).
- via Facebook geek friends
Video: David Edery on In-Game Ads
An interview with David Edery, the author of Changing the Game (see excerpts on AdLab), at Brands and Games 2009 in Utrecht.
-- via
Working on an Anti-Smoking Campaign?

I'm looking at a bunch of anti-smoking creative -- from cutting-edgiest to decades-old -- and am wondering why just about all of the ads use fear to get people to quit (if that was the actual goal, that is).
Is it because fear ads are high on recall? But how many of those who remember that smoking kills (probably just about every smoker) actually take the step?
People subjected to fear ads may show higher intent to quit -- and that's how this creative is probably focus-grouped -- but do they manage to stay away?
Buyology's author Martin Lindstrom writes about fMRI scans of smokers' brains: "The warning labels backfired: they stimulated the nucleus accumbens, sometimes called the “craving spot,” which lights up on f.M.R.I. whenever a person craves something, whether it’s alcohol, drugs, tobacco or gambling."
[A piece of history trivia: ads sponsored by Big Tobacco that were designed to prevent teen smoking achieved the opposite effect (here's why).]
If you are working on an anti-smoking assignment, take a look at Allen Carr's The Easy Way to Stop Smoking, a self-help book that has been more successful in getting people to quit than many other methods. Instead of nagging the smokers or scaring the bejesus out of them, he calmly -- and at times cheesily -- explains how smoking doesn't have any of the positive effects that smokers count on, such as controlling anxieties or relieving stress. It also explains how quitting doesn't bring about the withdrawal pangs smokers dread.
A campaign based on this platform would be a breath of fresh air.
On a related note, this Halo-themed anti-smoking machinima spot is lovely:
Time Square in Google Earth

Google Earth got a lot of new textured 3D buildings for New York (--gearth), and here's what billboards on Times Square look like.
Lots of coverage of Google Earth in the past; some highlights:
Avatars, Bots in Google Earth
Altoids Clues Game in Google Earth
Best Buy in Google Earth
Billboards in Google Earth
Local Ads, Anaglyph Buildings in Google Earth
19 Tips for In-Game Advertising
I wrote down these thoughts some time ago for a project we did together with Futurelab; they were intended as closing remarks for a larger work on in-game advertising. Some of these tips may seem trivial in the real world, but turn out more useful in the context of a game space. Others may be less intuitive to someone unfamiliar with the medium. I hit a writing block at #19; perhaps you could add one more to round it off.
See also:
- Ask yourself the “why” question. Why are you choosing games as a medium for your message? Is it to reach an otherwise elusive audience? Is it to demonstrate your product to a small but influential group of trend-setters?
- Set clear and measurable objectives. Games are among the most measurable media where you can track everything from detailed exposure to the otherwise elusive “engagement.” Tying the metrics to sales will require innovative thinking but is not impossible.
- Treat in-game advertising as R&D investment, not marketing expense. Online commerce has changed a lot during the decade since the first web shop was opened by Pizza Hut in mid-1990s. It will continue to evolve and game-like 3D environments are one possible direction the evolution may take. Acquire the basic skills now to stay ahead of the game, so to speak, tomorrow.
- Play. Games have changed a lot since you last played your Nintendo in high-school (or ColecoVision, for that matter). Familiarize yourself with the mechanics, the jargon and, in case of multi-player games, the etiquette. Play at least one game to the end even if it will take you 20 hours. The downside: you will die a lot. The upside: you can mark it as research. Treat an in-game campaign as a foray into a foreign country where you have to learn a new language, socially-accepted behavior and fashion sense.
- “Whatever you do, don’t step off the trail.” In Ray Bradbury’s “A Sound of Thunder”, the participants in Time Safari are instructed to keep to a narrow catwalk or risk upsetting the delicate balance of history. To paraphrase, whatever you do, stay in character. If you product doesn’t fit a particular game, turn to another one or try advertising through a proxy -- a fictional brand that resembles the real one closely enough for you to take the credit if things go well and deny involvement if they don’t.
- Each medium requires its own creative. You wouldn’t play a radio spot on TV. It’s just as ineffective to reuse web banners to advertise in a computer game. Games are a medium with its own set of characteristics and it is in the best interests of advertisers to take full advantage of them.
- Remember Confucius’s “I hear and I forget. I see and I remember. I do and I understand?” The interactive nature of games lets customers “do”.
- Challenge and surprise. Offer players interesting things to do with your ad unit and let them discover these things themselves. They will spread the knowledge through their communities along with your brand.
- Don’t twist players’ arms. There have been games that threatened players into passing by a billboard, “or else”. In other words, these games made an interaction with the ad a condition required for progress. Providing extra incentives is ok, but remember that gamers have already paid north of $50 for playing the game they have been expecting, in some cases, for months.
- Games are inherently “multimedia” and your ads don’t have to be limited to graphic units. The available options range from short secret codes to lavish branded mansions. Take your imagination for a soar (but don’t step off the trail).
- Integrated marketing is one of those industry buzz-words that actually make sense. If you are targeting gamers through games, complement your efforts through other media they consume. You can also create a “360-degree” brand experience right inside some of the games by designing multiple points of contact – through a fictional magazine, points of purchase, a sound bite. Another useful emerging buzz-word is “transmedia branding” meaning that each participating medium tells only one part of the brand narrative. Don’t repeat within the game what you are already saying on the campaign website; instead, develop the story further through new elements, characters or dramatic twists. Besides, creating a strong bridge between the virtual and the real gives an eerie Matrix-like feeling.
- Provide the right tools and the right incentives and enjoy the bliss of consumer-generated content. Game makers have enjoyed creative player participation for a long time and have learnt that letting players tinker with the product contributes to the bottom line in more ways than one. Make spare parts available and see how players re-assemble your brand in unexpected but exciting ways. Bonus: player tinkering provides invaluable (and measurable) insights into consumers’ perception of your brand.
- Be prepared for a strong word-of-mouth effect, even more so in the multi-player environments were inter-player communications are in real time. Your successes and failures alike will be amplified on player forums or virtual water coolers (or dragon caves, as the case may be). Where there is a community, there is a need for a community manager who would follow the conversations and address player concerns on the fly.
- Be prepared for graphic manifestations of player discontent. If things go wrong, expect sit-ins, demonstrations and defacing. The fact that all those forms of civil disobedience take place in a virtual world makes the challenge a double-edged sword. On the one hand, “it’s just a game”. On the other, there is no police to disperse the angry crowds. And whatever happens, don’t step off the trail. If you have to deal with player resentment, do it in-character. Don’t have the game administrators ban the offenders from the game. Instead, ask them to summon a fire-breathing dragon to protect your property.
- To quote a Second Life resident Prokofy Neva, a branded t-shirt you give away in the game may be worn forever because it needs no washing.
- If you are advertising in a virtual world, become its engaged citizen and not a foreign capitalist intruder. Don’t just show up for one-off press events or, worse, not at all. Give your brand a live face, even if it’s a face of a pink orc.
- Don’t simply mimic the layout of your real-world branded spaces; design your virtual presence in accordance with the world’s physics. Allow for comfortable camera movements so that players don’t hit the wall when they try to take a closer look at your merchandise. If characters can fly, make the ceilings taller and put an entrance on the roof.
- Deal with the demographic uncertainty. Game audiences vary by genre, size, complexity and even distribution channels. Very few games today can be put in a narrow demographic bucket as they are often played by groups that extend beyond the original customer. Be prepared to have your ad unit seen by someone on the opposite end from your intended target.
- Learn from the mistakes of others. If you are yet to plunge into in-game advertising, you have the advantage of knowing what has worked for the pioneers. Often, the arrival of a new medium prompts similar advertising solutions.
iPhone as a Game Controller
A proof-of-concept video of an iPhone game played on a big TV screen and controlled by tilting the phone, via Ars.
Flash Game Accessible to the Blind

Flyzzz is one of the four Flash games that accompany beautiful TV spots for Leonard Cheshire Disability. Flyzzz can be played by the ear -- you help the chamelion catch flies when they are buzzing right above him.
Earlier:
Color-Blind Image Simulation
Advertising for the Color-Blind
Tool: How Color Blind People See Text
Advertising in Braille
The Robotic Shopping Assistant
Playboy in Braille
Read more about
creative,
human factors,
in-game,
usability
Case Study: Burger King's Advergames - Part 3
This is the final part of an abstract from a new book Changing the Game: How Video Games Are Transforming the Future of Business by David Edery and Ethan Mollick (here are part 1 and part 2).
Finally, the Burger King games could not have come about without an experienced and reliable game developer. Blitz Games had a long history of delivering projects on time, and had also worked on several projects involving outside stakeholders and IP holders. As such, they were well suited for the Burger King project. Despite this, Blitz still encountered several serious stumbling blocks during the course of the games’ development, learning hard-won lessons as a result:
Multiplatform development
To maximize their potential audience, Burger King wanted games that were compatible with both the original Xbox and the Xbox 360. However, they also wanted the 360 version to be more impressive than the original
Xbox version; after all, the 360 had just been released and was being marketed as a high-performance, “next generation” console.
Given the tight development time frame for the games, this took time and attention away from work that could have been put into additional game features and polish. Marketers should be aware that making a game compatible with multiple platforms—even platforms in the same line—can require significant effort, and should therefore budget and schedule accordingly.
Multiplayer challenges
Big Bumpin’ and Pocketbike Racer both include online multiplayer action—an important feature of
these games. Although online multiplayer modes can make a game much more compelling to consumers, such modes also make a game much more difficult and expensive to develop. Many developers consistently underestimate the difficulty of multiplayer development, especially on console platforms, and Blitz was no exception, though they ultimately managed to execute beautifully on Burger King’s vision. The lesson here: If you want a multiplayer game, make sure you reserve substantial time for the development and testing of that multiplayer functionality.
Different games, different assets
The benefit of creating three very different games was, as mentioned earlier, the fact that it enabled Burger King to appeal to different kinds of gamers and encourage multiple trips to Burger King restaurants. However, it also forced Blitz to develop very different assets (such as art and computer code) for the three games—time and effort that could have gone into raising the overall quality of a smaller number of games, or an equal number of more similar games. While developing three very different games ultimately proved to be a great strategy for Burger King, marketers who are seeking to raise the bar and stand out from competitors in the future may want to focus their budget on projects that are more ambitious in scale, but less ambitious in scope. As always, it depends on the situation.
Brand rules and restrictions
One of the biggest potential stumbling blocks for any game developer is something that marketers have total control over: the restrictions on how a company’s brands can be used in a game. Failure to carefully explain and explore these restrictions at the start of a game development project can wreak havoc later on.
Take the case of Sneak King. Blitz initially intended the game to be a Spy-versus-Spy-type game, with multiple Kings trying to out-deliver one another while laying traps for their opponents. After much design work, Blitz was informed that “there can be only one King.” So Blitz substantially revised the design, choosing to focus on “king of the hill”–style gameplay; whoever captures the crown gets to be King. They were then informed that “you cannot ‘become’ the King.” So Blitz adjusted yet again: One person plays the King, while the others play the remaining BK personalities, laying traps to prevent him from making deliveries. They then heard, “The King is too savvy to find himself in danger of any kind.” And so on and so forth.
Some of the trouble with Sneak King was inevitable; it is impossible for marketers to predict every possible brand usage that a developer might propose. However, some of these brand-related missteps could have been avoided with clearer upfront communication. In particular, given the action-oriented nature of many video games, it was probably not hard to guess that “the King might find himself in danger.” Marketers would do well to put time, upfront, into deciding and communicating what basic attributes of their brands are truly inviolable.
The Burger King promotion was expensive. In addition to the cost of developing the games themselves, Burger King had to pay distribution fees, promotional fees, and other nondevelopment expenses. In fact, the total cost of the promotion was ultimately many times the cost of game development itself, though it’s worth noting that Burger King recouped a significant percentage of its costs by selling the games for $3.99. Given the effort and financial resources necessary to support an initiative of this scope, marketers wanting to emulate Burger King’s success must be prepared to treat their initiative as a key one for their company. Otherwise, the risks of an expensive failure prove too great. Fortunately, as demonstrated by Burger King, the benefits of a well-managed advergame initiative are even greater.
Advertising Lab is pleased to offer highlights from a book that just came out, Changing the Game: How Video Games Are Transforming the Future of Business, co-authored (together with Ethan Mollick) by an old friend and former MIT colleague David Edery, who now works as Worldwide Games Portfolio Planner for Xbox Live Arcade.
You will find a review in Economist, and Cliff Notes in Inc. Here, with authors' permission, I'm publishing their findings and insights about Burger King's set of blockbuster advergames that are at least in part credited for the 41% jump in company's quarterly profits.
Finally, the Burger King games could not have come about without an experienced and reliable game developer. Blitz Games had a long history of delivering projects on time, and had also worked on several projects involving outside stakeholders and IP holders. As such, they were well suited for the Burger King project. Despite this, Blitz still encountered several serious stumbling blocks during the course of the games’ development, learning hard-won lessons as a result:
Multiplatform development
To maximize their potential audience, Burger King wanted games that were compatible with both the original Xbox and the Xbox 360. However, they also wanted the 360 version to be more impressive than the original
Xbox version; after all, the 360 had just been released and was being marketed as a high-performance, “next generation” console.
Given the tight development time frame for the games, this took time and attention away from work that could have been put into additional game features and polish. Marketers should be aware that making a game compatible with multiple platforms—even platforms in the same line—can require significant effort, and should therefore budget and schedule accordingly.
Multiplayer challenges
Big Bumpin’ and Pocketbike Racer both include online multiplayer action—an important feature of
these games. Although online multiplayer modes can make a game much more compelling to consumers, such modes also make a game much more difficult and expensive to develop. Many developers consistently underestimate the difficulty of multiplayer development, especially on console platforms, and Blitz was no exception, though they ultimately managed to execute beautifully on Burger King’s vision. The lesson here: If you want a multiplayer game, make sure you reserve substantial time for the development and testing of that multiplayer functionality.
Different games, different assets
The benefit of creating three very different games was, as mentioned earlier, the fact that it enabled Burger King to appeal to different kinds of gamers and encourage multiple trips to Burger King restaurants. However, it also forced Blitz to develop very different assets (such as art and computer code) for the three games—time and effort that could have gone into raising the overall quality of a smaller number of games, or an equal number of more similar games. While developing three very different games ultimately proved to be a great strategy for Burger King, marketers who are seeking to raise the bar and stand out from competitors in the future may want to focus their budget on projects that are more ambitious in scale, but less ambitious in scope. As always, it depends on the situation.
Brand rules and restrictions
One of the biggest potential stumbling blocks for any game developer is something that marketers have total control over: the restrictions on how a company’s brands can be used in a game. Failure to carefully explain and explore these restrictions at the start of a game development project can wreak havoc later on.
Take the case of Sneak King. Blitz initially intended the game to be a Spy-versus-Spy-type game, with multiple Kings trying to out-deliver one another while laying traps for their opponents. After much design work, Blitz was informed that “there can be only one King.” So Blitz substantially revised the design, choosing to focus on “king of the hill”–style gameplay; whoever captures the crown gets to be King. They were then informed that “you cannot ‘become’ the King.” So Blitz adjusted yet again: One person plays the King, while the others play the remaining BK personalities, laying traps to prevent him from making deliveries. They then heard, “The King is too savvy to find himself in danger of any kind.” And so on and so forth.
Some of the trouble with Sneak King was inevitable; it is impossible for marketers to predict every possible brand usage that a developer might propose. However, some of these brand-related missteps could have been avoided with clearer upfront communication. In particular, given the action-oriented nature of many video games, it was probably not hard to guess that “the King might find himself in danger.” Marketers would do well to put time, upfront, into deciding and communicating what basic attributes of their brands are truly inviolable.
The Burger King promotion was expensive. In addition to the cost of developing the games themselves, Burger King had to pay distribution fees, promotional fees, and other nondevelopment expenses. In fact, the total cost of the promotion was ultimately many times the cost of game development itself, though it’s worth noting that Burger King recouped a significant percentage of its costs by selling the games for $3.99. Given the effort and financial resources necessary to support an initiative of this scope, marketers wanting to emulate Burger King’s success must be prepared to treat their initiative as a key one for their company. Otherwise, the risks of an expensive failure prove too great. Fortunately, as demonstrated by Burger King, the benefits of a well-managed advergame initiative are even greater.
Advertising Lab is pleased to offer highlights from a book that just came out, Changing the Game: How Video Games Are Transforming the Future of Business, co-authored (together with Ethan Mollick) by an old friend and former MIT colleague David Edery, who now works as Worldwide Games Portfolio Planner for Xbox Live Arcade.
You will find a review in Economist, and Cliff Notes in Inc. Here, with authors' permission, I'm publishing their findings and insights about Burger King's set of blockbuster advergames that are at least in part credited for the 41% jump in company's quarterly profits.
Case Study: Burger King's Advergames - Part 2
This is part 2 of 3 of an abstract from a new book Changing the Game: How Video Games Are Transforming the Future of Business by David Edery and Ethan Mollick (here's part 1).
Burger King also made the decision to sell the games at $3.99, an extremely low price for disc-based (as opposed to downloadable) Xbox games but, as it turned out, a potentially much better price than “free.” By choosing to charge even a small sum, Burger King seems to have sent a message to consumers that its games had real value, unlike other advergames they might have played and been disappointed by in the past. Burger King further supported the games with a strong marketing campaign that included advertisements shown during Saturday Night Live and during NFL games. All this sent a very clear message to consumers: “There is something of value waiting for you at Burger King.”
Furthermore, Burger King wisely decided to spread its bets by appealing to as broad an audience as possible. The company attracted “gift givers” and more casual gamers by pricing the games cheaply. It attracted enthusiasts by taking advantage of Microsoft’s phenomenally successfully “achievement” system, which awards gamers points when they play games, and by building multiplayer functionality into two of the three games. And lastly, by creating three very different games, Burger King made sure it had something to offer any customer, no matter how narrow their interest in game genres might be.
The games were also so successful because Microsoft and Burger King had motivated and empowered project champions involved in the process.
Within Microsoft, that champion was Chris Di Cesare, formerly Director of Marketing for Xbox. In Di Cesare’s words, “The scale of the agencies and people involved in this promotion was immense. We’re talking PR firms, ad agencies, online firms, game developer and publisher, and promotion agencies on both sides. It easily could have devolved into fiefdoms, but everyone checked their egos at the door and focused on Burger King’s very clear idea of what they wanted to accomplish. Everyone fell in line because of Burger King’s passion for this project. However, the Burger King guys were total novices when it came to game development, so it became my job to translate their desires to the great many groups within Microsoft that needed to work together for this to happen. In other words, Burger King had an internal evangelist in me.”
Advertising Lab is pleased to offer highlights from a book that just came out, Changing the Game: How Video Games Are Transforming the Future of Business, co-authored (together with Ethan Mollick) by an old friend and former MIT colleague David Edery, who now works as Worldwide Games Portfolio Planner for Xbox Live Arcade.
You will find a review in Economist, and Cliff Notes in Inc. Here, with authors' permission, I'm publishing their findings and insights about Burger King's set of blockbuster advergames that are at least in part credited for the 41% jump in company's quarterly profits.
Burger King also made the decision to sell the games at $3.99, an extremely low price for disc-based (as opposed to downloadable) Xbox games but, as it turned out, a potentially much better price than “free.” By choosing to charge even a small sum, Burger King seems to have sent a message to consumers that its games had real value, unlike other advergames they might have played and been disappointed by in the past. Burger King further supported the games with a strong marketing campaign that included advertisements shown during Saturday Night Live and during NFL games. All this sent a very clear message to consumers: “There is something of value waiting for you at Burger King.”
Furthermore, Burger King wisely decided to spread its bets by appealing to as broad an audience as possible. The company attracted “gift givers” and more casual gamers by pricing the games cheaply. It attracted enthusiasts by taking advantage of Microsoft’s phenomenally successfully “achievement” system, which awards gamers points when they play games, and by building multiplayer functionality into two of the three games. And lastly, by creating three very different games, Burger King made sure it had something to offer any customer, no matter how narrow their interest in game genres might be.
The games were also so successful because Microsoft and Burger King had motivated and empowered project champions involved in the process.
Within Microsoft, that champion was Chris Di Cesare, formerly Director of Marketing for Xbox. In Di Cesare’s words, “The scale of the agencies and people involved in this promotion was immense. We’re talking PR firms, ad agencies, online firms, game developer and publisher, and promotion agencies on both sides. It easily could have devolved into fiefdoms, but everyone checked their egos at the door and focused on Burger King’s very clear idea of what they wanted to accomplish. Everyone fell in line because of Burger King’s passion for this project. However, the Burger King guys were total novices when it came to game development, so it became my job to translate their desires to the great many groups within Microsoft that needed to work together for this to happen. In other words, Burger King had an internal evangelist in me.”
Advertising Lab is pleased to offer highlights from a book that just came out, Changing the Game: How Video Games Are Transforming the Future of Business, co-authored (together with Ethan Mollick) by an old friend and former MIT colleague David Edery, who now works as Worldwide Games Portfolio Planner for Xbox Live Arcade.
You will find a review in Economist, and Cliff Notes in Inc. Here, with authors' permission, I'm publishing their findings and insights about Burger King's set of blockbuster advergames that are at least in part credited for the 41% jump in company's quarterly profits.
Obama Campaign Buys In-Game Billboards

image source
GigaOm has confirmed the ad buy by the Obama campaign in Burnout: Paradise, an Xbox Live racing game. (Update: AP says there are nine EA games in the buy, including Madden 09.)

Also, check out Pork Invaders, McCain campaign's advergame on Facebook and a clone of a GOP game "Tax Invaders" from the 2004 cycle, which, of course, itself was a clone of an 80s arcade blockbuster. Here's some NYT's background on political advergaming. (Shoot some pork with embeddable version of the game below).
(keywords: political advergame, political in-game advertising)
Case Study: Burger King's Advergames - Part 1
This week, Advertising Lab is pleased to offer highlights from a book that just came out, Changing the Game: How Video Games Are Transforming the Future of Business, co-authored (together with Ethan Mollick) by an old friend and former MIT colleague David Edery, who now works as Worldwide Games Portfolio Planner for Xbox Live Arcade.
You will find a review in Economist, and Cliff Notes in Inc. Here, with authors' permission, I'm publishing their findings and insights about Burger King's set of blockbuster advergames that are at least in part credited for the 41% jump in company's quarterly profits.
Changing the Game: How Video Games Are Transforming the Future of Business
by David Edery and Ethan Mollick
An advergame worthy of purchase must be a cut above the usual advergaming fare. Creating such a game requires close cooperation between an advertiser and a game developer. That can be a challenge for companies not accustomed to game development, but the end result is worth the effort. The Burger King promotion illustrates both the benefits and the risks of undertaking such a complex project.
In late 2006, Burger King began selling three games: a multiplayer racing game called Pocketbike Racer, a bumper-car game called Big Bumpin’, and an oddly compelling game called Sneak King, in which players must sneak up on hungry strangers and surprise them with a burger.
The games were playable on both the original Xbox and the Xbox 360, with upgraded graphics on the latter console, and were all developed in just eight months. By all accounts, it’s a miracle that the games were even finished on time, much less at any reasonable level of quality.
Philip Oliver, the CEO of Blitz Games and a longtime industry veteran, doesn’t pull any punches when describing the entire project, which was awarded to Blitz by Microsoft and Burger King earlier that year: “Burger King’s ambitions for the games evolved substantially over the life of the project. If someone had told me ‘You have eight months to write three Xbox games, which also must run on the Xbox 360, and can’t simply be a port to the 360 but must actually look better, even though the 360 hardware isn’t fully finished yet,’ I simply wouldn’t have signed up for it. That being said, I’m delighted with how it all turned out!” As well he should have been, given the 40% increase in Burger King’s profits during the quarter in which the games were released.
Many factors drove the success of the Burger King games.
Chief among these was the recognition by all parties involved that the games needed to be fun first, and serve as advertisements second. In Oliver’s words, “Burger King wanted nothing more than to provide players with a great deal of fun and a lot of laughs—it would be pure coincidence that the games took place in the Burger King universe.”
Fortunately, the Burger King universe happens to be a rather bizarre and interesting place, thanks in no small part to the energy the company has invested into characters such as the King and the Subservient Chicken. Dr. Stacy Wood, Professor of Marketing for the Moore School of Business at the University of South Carolina, summed up Burger King’s approach: “There wasn’t a heavy sell with these games. Consumers thought they were getting a fun experience—not a sales pitch. For brands that have some kitsch value—some cultural capital—this is a great way to connect with consumers. When turning off the highway, their instinct to eat at Burger King, instead of another fast-food restaurant across the street, is going to be driven by a very fast decision that is influenced,in large part, by warm feelings like ‘Burger King is fun.’”
To be continued.
You will find a review in Economist, and Cliff Notes in Inc. Here, with authors' permission, I'm publishing their findings and insights about Burger King's set of blockbuster advergames that are at least in part credited for the 41% jump in company's quarterly profits.
Changing the Game: How Video Games Are Transforming the Future of Business
by David Edery and Ethan Mollick
An advergame worthy of purchase must be a cut above the usual advergaming fare. Creating such a game requires close cooperation between an advertiser and a game developer. That can be a challenge for companies not accustomed to game development, but the end result is worth the effort. The Burger King promotion illustrates both the benefits and the risks of undertaking such a complex project.
In late 2006, Burger King began selling three games: a multiplayer racing game called Pocketbike Racer, a bumper-car game called Big Bumpin’, and an oddly compelling game called Sneak King, in which players must sneak up on hungry strangers and surprise them with a burger.
The games were playable on both the original Xbox and the Xbox 360, with upgraded graphics on the latter console, and were all developed in just eight months. By all accounts, it’s a miracle that the games were even finished on time, much less at any reasonable level of quality.
Philip Oliver, the CEO of Blitz Games and a longtime industry veteran, doesn’t pull any punches when describing the entire project, which was awarded to Blitz by Microsoft and Burger King earlier that year: “Burger King’s ambitions for the games evolved substantially over the life of the project. If someone had told me ‘You have eight months to write three Xbox games, which also must run on the Xbox 360, and can’t simply be a port to the 360 but must actually look better, even though the 360 hardware isn’t fully finished yet,’ I simply wouldn’t have signed up for it. That being said, I’m delighted with how it all turned out!” As well he should have been, given the 40% increase in Burger King’s profits during the quarter in which the games were released.
Many factors drove the success of the Burger King games.
Chief among these was the recognition by all parties involved that the games needed to be fun first, and serve as advertisements second. In Oliver’s words, “Burger King wanted nothing more than to provide players with a great deal of fun and a lot of laughs—it would be pure coincidence that the games took place in the Burger King universe.”
Fortunately, the Burger King universe happens to be a rather bizarre and interesting place, thanks in no small part to the energy the company has invested into characters such as the King and the Subservient Chicken. Dr. Stacy Wood, Professor of Marketing for the Moore School of Business at the University of South Carolina, summed up Burger King’s approach: “There wasn’t a heavy sell with these games. Consumers thought they were getting a fun experience—not a sales pitch. For brands that have some kitsch value—some cultural capital—this is a great way to connect with consumers. When turning off the highway, their instinct to eat at Burger King, instead of another fast-food restaurant across the street, is going to be driven by a very fast decision that is influenced,in large part, by warm feelings like ‘Burger King is fun.’”
To be continued.
Google In-Game Advertising a Misnomer
Google In-Game Advertising is not really in-game, it's more like those pre-rolls they are trying with YouTube. Hope it's not what the Adscape deal and all those cool patents for targeting players based on their in-game behavior are for.
Below is a video demo from the AdSense blog:
Below is a video demo from the AdSense blog:
Advergame Arcades

The same people who brought us interactive movie theater entertainment have installed several advergaming arcades in the MSNBC.com digital cafe at Rockefeller Plaza in Manhattan. The two games are NewsBlaster and NewsBreaker. The arcades are free and hooked up to the web. Love the old-school look and the homage, perhaps unintended, to Tapper, the first arcade to feature a brand (more in this post on history of in-game advertising).
Credits: SS+K [Sam Mazur and Matt Ferrin] with Fuel Industries [software] and Dream Authentics [hardware].
Dream Authentics builds custom arcade machines.

Budweiser logo in Bally-Midway's Tapper, mid-1980s (image source)
-- thanks, Sam
Ponoko: Marketplace for Things

If this post's headline seems awkward, it's because I can't quite find the right words to describe the service.
"What happens to the music bits today will happen to the chair bits tomorrow when you are able to download the arm-rests from Ikea and the upholstery from Crate & Barrel, mix them up and print them out."
This sounded a bit too sci-fi even to me when I posted it a couple of years ago. Today, I found Ponoko.
Ponoko (about) is for physical things what Lulu is for books and what CafePress is for t-shirts. You create a design for, say, a chair, upload it to Ponoko's site, and list the chair for sale. When someone likes your chair and pays for it, Ponoko laser-cuts the pieces out of a range of materials, packs them up and ships them to the buyer. Or to you, if you want to assemble the pieces first. You can buy product plans created by other people and, depending on the license, customize them to make and sell something new.
You can see, of course, how something like Ponoko is a great fit for the 3D interface of Second Life, which is all about people designing 3D models of stuff, or Google Lively (read AdLab's first impressions).
To throw in somewhat similar services I discovered while looking at Ponoko: FigurePrints makes custom WoW models, ShapeWays does rapid prototyping on demand, and a few others mentioned in the previously posted stories here on AdLab.
The Apartment of Puzzles

NY Times: "The architectural designer Eric Clough embedded 18 clues in the Fifth Avenue apartment of the Klinsky- Sherry family, leading them on a scavenger hunt through the rooms of their home."
-- via Game Tycoon
Google Lively: First Impressions
Big news today, if you haven't heard already: Google released a 3D chat app called Lively. It's the same thing that was being tested at a university in Arizona last winter, and probably the same thing that was rumored about in January 2007 and anticipated as early as 2006.
In a nutshell, it's a 3d chat app where users can customize avatars and create environments (rooms) with stuff they pick from a product catalog. You need to install a browser (FF, IE, Win-only) plug-in to participate. And while it is not exactly an MMO, it is more similar to Second Life than early commentators admit.
First impressions:
1. While object creation is a process open only to participants hand-picked by Google (see a press release by Rivers Run Red, a creator of Second Life presence for many companies), Lively seems designed to be integrated with SketchUp and 3D Warehouse at some point. This would open doors not only to user-generated stuff, but also to branded objects (such as virtual Whirlpool appliances).

Rivers Run Red has a room in Lively, and so does Linden Lab.
2. While all of the stuff I've seen in the catalog is free, the very fact that there's a price tag at all hints at a potential marketplace for virtual stuff.
3. The integration with the "flat" web is pretty tight. Each room has a "real" URL (here's Google's), each room can be embedded on other sites (and viewable with the plug-in), some objects can play YouTube videos and show pictures hosted elsewhere.
4. Characters can be equipped with animation scripts.
5. Similarly to Second Life, Lively allows movement around the environment and camera manipulation, and like in Second Life, the controls are not terribly intuitive.
6. Objects can be fitted with hyperlinks to "flat" web pages, just like the lava lamp on the screen cap below pointing to AdLab. This could probably result in some sort of on-the-spot transactional activity: you click on the lamp in my room and a window pops up offering you to buy the real thing.
7. There are half-rumors half-expectations that Lively will be somehow integrated into Orkut, which seems possible since Lively uses the same system-wide Google login.

Lively, of course, will become more, well, lively when Google integrates it with SketchUp and allows user- and brand-generated assets to become part of the marketplace. It could also be hypothetically integrated with Google Earth so that Lively "rooms" become inhabitable interiors of the 3D models on Earth or maybe in the sky.
A lof ot related links from AdLab's past years here, so I'll just give a couple of broad pointers:
Google and virtual worlds
Virtual worlds in general
Posts related to Second Life
Advertising in games
In a nutshell, it's a 3d chat app where users can customize avatars and create environments (rooms) with stuff they pick from a product catalog. You need to install a browser (FF, IE, Win-only) plug-in to participate. And while it is not exactly an MMO, it is more similar to Second Life than early commentators admit.
First impressions:
1. While object creation is a process open only to participants hand-picked by Google (see a press release by Rivers Run Red, a creator of Second Life presence for many companies), Lively seems designed to be integrated with SketchUp and 3D Warehouse at some point. This would open doors not only to user-generated stuff, but also to branded objects (such as virtual Whirlpool appliances).

Rivers Run Red has a room in Lively, and so does Linden Lab.
2. While all of the stuff I've seen in the catalog is free, the very fact that there's a price tag at all hints at a potential marketplace for virtual stuff.
3. The integration with the "flat" web is pretty tight. Each room has a "real" URL (here's Google's), each room can be embedded on other sites (and viewable with the plug-in), some objects can play YouTube videos and show pictures hosted elsewhere.
4. Characters can be equipped with animation scripts.
5. Similarly to Second Life, Lively allows movement around the environment and camera manipulation, and like in Second Life, the controls are not terribly intuitive.
6. Objects can be fitted with hyperlinks to "flat" web pages, just like the lava lamp on the screen cap below pointing to AdLab. This could probably result in some sort of on-the-spot transactional activity: you click on the lamp in my room and a window pops up offering you to buy the real thing.
7. There are half-rumors half-expectations that Lively will be somehow integrated into Orkut, which seems possible since Lively uses the same system-wide Google login.

Lively, of course, will become more, well, lively when Google integrates it with SketchUp and allows user- and brand-generated assets to become part of the marketplace. It could also be hypothetically integrated with Google Earth so that Lively "rooms" become inhabitable interiors of the 3D models on Earth or maybe in the sky.
A lof ot related links from AdLab's past years here, so I'll just give a couple of broad pointers:
Google and virtual worlds
Virtual worlds in general
Posts related to Second Life
Advertising in games
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