Study: Ads in Video Games Drive Persuasion, Costs Rise

"Activision and Nielsen Entertainment released the results of a pioneering study on the effectiveness of in-game advertising that incorporates different levels of product integration. The research is the fourth component of an ongoing joint initiative between the two companies to establish standardized tools to measure the value of in-game ads.

The study confirms earlier findings that product integration helps to drive awareness and recall, but also uncovers a new variable, pervasiveness, which contributes to driving brand awareness as well. Most important, the research shows that the combination of product integration and pervasiveness results in a high degree of persuasion -- the willingness of consumers to change their opinions of a brand and/or recommend it to others -- and establishes that video games drive persuasion."
-- The Adrenaline Vault

"Next year, cellphone maker Nokia is doubling to 10 the number of games in which it will advertise, and the world's largest independent game maker, Electronic Arts, which had one game with ads in 2002, will have product placements in at least half of the 30 titles it releases next year.

Costs for advertising in video games have grown exponentially. They can range from $5,000 to $500,000, prices that rival spots in small films, according to some agencies."
-- Boston Globe

Here's the official press release.
Here are some earlier findings of the same study.
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