Microsoft + Electronic Arts = In-game Advertising?

Coming to you live from Oklahoma City. Wi-Fi in a hospital room, who would have thought it was possible? No I am not in the hospital just blogging from one. So Microsoft and Electronic Arts have partnered together to sign the largest in-game advertising deal to date. Initially the campaign will be rolled out to the Sports titles like Madden, Nascar, Tiger Woods and Skate.

The reason this is possible now is how connected most gamers are. Think about some of the current titles in your library. You can get up to the minute ESPN feeds and updates now when the game fires up in NBA Live 07 and other EA titles. These feeds are a precursor of what’s to come. In reviewing research for this post it turns out that there are 4.4 million connected gaming console households. With 46 million game consoles in homes and another 148 million people with access to gaming consoles these numbers will continue to increase. So needless to say it is very appealing to advertisers to want to reach this segment of the population as this is a key demographic for positioning products and services.

All of the major consoles now have an online presence with Xbox leading the way online and the Wii attracting scores of new gamers. The industry is definitely in for additional growth online. So this all leads to the million dollar question… er the $600 million dollar question (market projection in 3 years)… Do you want ads in your games? It is nice to see the Dodge ads on the billboards in Crackdown and it does add to the realism in games, but how would you respond to something that interupts game play?

Personally, I like the subtle (or sometimes not so subtle) product placement approach in most films. It is about characters interacting with name brand products but not about the product itself. This to me has more impact and would make me more likely to remember the reference than stopping in the middle to see a pop-up or ticker during game play.

So whether you are a fan or not, In-game advertising is coming and in a big way. There are too many dollars and distractions these days to not take this medium seriously. What do you think? Are you for, opposed or just in-different to in-game advertising? In the end it will be your dollars that do the talking.

Is That a Kwik-E Mart???

7-11 just did something that is pretty innovative from a marketing standpoint. They have transformed a dozen stores into Kwik-E-Marts from The Simpsons in an effort to promote the upcoming Simpson’s movie. I really like this campaign as it is a great example of reverse product placement and by the buzz and lines at the store I went to today it seems to be working.

KrustyO’s, Squishees, Buzz cola and the ever famous pink Homer Simpson donuts are just a few of the products that you can now pick up and take home with you and as they state have “absolutely no nutritional value”. For those of you wondering, Duff beer did not make the product cut for this promotion.

The ability of 7-11 to “laugh at itself” is very key in this promotion. “The idea of actually changing the stores into Kwik-E-Marts was over the top but a natural” stated one of the execs at 7-11‘s agency. “It shows they get the joke”. You would not think decorating a store to look like a cartoon would be that effective, but they are definitely reaching a new audience as I saw people in the store today that you normally would not see going to a 7-11 for a specific purpose.

It is funny that I get this excited around a campaign, but as an instructor of marketing and a marketing professional, it is great to see creative application of marketing strategy and the ability of a proven brand to embrace something that is “different” in order to garner additional attention. Plus it is just a lot of fun.

Tom-simpsons-7-11

Viral Marketing & SMO

Viral Marketing is now one of the most powerful ways to market online. The key to viral success comes down to interruption vs. invitation. Traditional media such as television has the potential to reach hundreds of millions but the message may not resonate or be clearly discerned by the prospective target audience due to the “noise” and passive positioning associated with this type of delivery. The beauty of viral messaging is that it has a much better chance to get the users attention as the message is either coming from a trusted source, a recommendation, or meets the search criteria defined by the user.  Also, this type of message is available on-demand which gives the user ultimate control over when and where consumption occurs.

One viral aspect that is getting a lot of attention is online video. If you are reading this you have more than likely viewed a user created video on YouTube or some other site and you are not alone.  Online video is beginning to garner more attention from average viewers with 4% of people over the age of 18 watching videos daily and another 14% watching at least once a week. Research shows more organizations will be shifting marketing dollars to producing and positioning online videos. The reason for the shift is that video ads show a propensity to generate higher ad interaction and longer ad viewing (2/3 of the way through on average) this in turn leads to higher click-through rates.

So as an organization you may be thinking about focusing on online video or maybe you are looking to tie into user generated content and incorporate your advertising. If so, you need to focus on a few key factors. As with any type of marketing activity consistency is the key. Ensure that you are intrinsically linked to your brand, your video should require online interactivity and it needs to have synergy with offline marketing material. The other key factor revolves around the concept of Social Media Optimization or SMO.

SMO is the process of optimizing your online media presence by becoming more visible through searches within online communities and community web sites. The concept of SMO is to increase the chances of your video being distributed more widely through community search engines. This is very important as this is the key driver for this type of viral strategy.

As you consider your viral strategy it may become clear that you need a solid community presence associated with your brand. This is where branded community offerings can be applicable. Integrated platform (Blogs, Forums, File, Photo Galleries, Video & Podcast support, RSS) that streamline the positioning of an online community. Let me know if we can assist you with your community or viral marketing needs. We would be more than happy to assist. Feel free to contact me with questions at tedwards@blackfin360.com