Google buys Adscape, sets up in-game ad battle with Microsoft
In a bid to exert an advertising presence within the gamers market, Google has announced the acquisition of Adscape, a privately held advertising company that specializes in developing integrated in-game advertising. The acquisition marks Google’s move to the video game ad market that’s expected to grow massively over the next few years.
The deal has been signed for an undisclosed sum. Earlier, in February, Red Herring estimated the deal to be worth approximately $23 million, citing unnamed sources.
Adscape, which can place static or dynamic advertising inside PC, console and mobile games, as well as offering demographic and geographic targeting, has yet to strike a deal with a game publisher. It also has a number of interesting technology patents but hasn’t gone much beyond that.
By comparison, last year Microsoft purchased Massive Incorporated for roughly $200 million. Massive was also far more established compared to Adscape in the in-game advertising space and actually had developed a network for advertising.
Google said in a statement on their decision to acquire Adscape: “[W]e think there is great value in video game advertising. As more and more people spend time playing video games, we think we can create opportunities for advertisers to reach their target audiences while maintaining a high quality, engaging user experience.”
The acquisition gives Google, owner of the most-used Internet search engine, a new kind of ad revenue and a way to expand beyond the Web. U.S. sales of ads in video games will grow to $732 million by 2010 from $56 million in 2005, according to Boston-based Yankee Group Research.
In a written Q&A on its site, Google said it would start testing how to implement the ads, but said it didn’t know whether they would be integrated into game content or take the form of AdSense-like contextual text ads.
“Over the past few years, the video game experience has become richer and more interactive. We think this rich environment is a perfect medium to deliver relevant, targeted advertising that ultimately benefits the user, the video game publisher and the advertiser.”
The gamers market is said to be pretty unforgiving of anything felt to be intrusive or counterintuitive to an immersive game experience. It will be interesting to see how Google gets its advertising game into the gamers world.
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March 20th, 2007
Hi Ruben, Hope you’re well. I wanted to touch base about Google’s Adscape acquisition – which is basically a “me too” play. To date, Miniclip is the largest In-Game advertiser on the web today. Companies who have taken the lead in “In-Game Advertising” or advergaming, on Miniclip include BP, Coca Cola, Disney, Starburst, Gillette and Momentum Pictures – to name a few – and game players responded by racking up 80 million game plays for Gillette’s ‘Jet Ski’ game http://www.miniclip.com/jetski/jetski.htm making it the most successful advergame to date.
We are announcing this today and I wanted to give you a first look. Let me know if you would like to speak with Rob Small, Miniclip CEO, or any additional info. Best, Jo
MINICLIP ANNOUNCES LARGEST ONLINE “IN-GAME” ADVERTISING NETWORK
London and New York – March 20, 2007 – Miniclip.com, http://www.miniclip.com the world’s largest online games and virtual community website, with 34 million unique game players today announced the open release of the Miniclip online “In-Game” Advertising Network, the first in the world, upon its release in 2001 and now the largest in terms of the number of online game players.
The “Miniclip In-Game Advertising Network” which has been operating for six years exclusively for Miniclip.com is now open to advertisers. The network comprises of 34 million game players on Miniclip.com with many more millions of game players across thousands of Miniclip game network sites.
“With the in-game model advertisers are able to buy targeted branding and extended interaction time for their brand or product directly with game players on Miniclip.com and now across other game network sites,” said, Robert Small, Miniclip CEO. Miniclip “In-Game” Advertising is more advanced than other current offerings of basic, static billboards. Miniclip advertisements are interactive and totally integrated, including integrated aspects such as movie trailers and the capability of direct purchases all “in-game”. Advertisers can now choose to display their games on Miniclip.com and also extend them across the Miniclip network reaching even more game players.
Advertisers taking advantage of Miniclip interactive “In-Game” Advertising include Coca Cola, Disney, Warner Bros, Starburst, BP, Momentum pictures and Gillette. Miniclip game players have responded by racking up 80 million game plays for Gillette’s ‘Jet Ski’ game http://www.miniclip.com/jetski/jetski.htm making it the most successful “In-Game” advertising to date. Miniclip offers packages that guarantee 30 million or more game plays for an advertiser. Miniclip is the only website capable of delivering this type of volume on single piece of rich media content and the only website to make this guarantee to advertisers.
About Miniclip.com
Miniclip.com is the world’s largest online games website with 34 million unique users per month – Google Analytics Dec 2006. Miniclip.com games are the most played online games and are syndicated across more websites than any others. Miniclip.com games are extremely popular because they are fun, free, easy to use and include the full range from casual games to hard-core massive multiplayer games. Miniclip.com is one of the Internet’s top broadband websites with 98% of its users on high bandwidth connections. Miniclip.com was launched in 2001, has experienced explosive growth and is the largest website in private hands.. Miniclip also won the prestigious 2006 Webby Peoples Voice Award, the “Oscars of the Internet” for the Internet’s best game site for the second consecutive year.
Contact:
Jo McKenna
VP Miniclip Communications
Tel: + 646 382 4291
jomckenna@miniclip.com