LOS ANGELES - When BP Lubricants USA wanted to raise the profile of its high-performance Castrol Syntec motor oil with ever-elusive young male consumers, it followed them into a popular racing video game.
Like its peers, the unit of BP needs to be where males aged 18 to 34 have
gone after leaving traditional media outlets like magazines and television in droves.
"We have to look for new ways to reach these guys," said Michael DeBiasi, the marketing director who oversaw the campaign.
The Castrol brand's integration into Electronic Arts' "Need for Speed Most Wanted" game appeared in the form of billboards, Syntec car engine upgrades and signage in garages, and as Castrol-branded Quick Lubes.
Through its website, the brand also provided gamers with a "cheat code" that allowed them to unlock a high-performance Castrol Syntec Ford GT to drive in the game, something DeBiasi said players appreciated.
DeBiasi would not disclose what the company paid for this exposure. "We feel like it was a very effective and efficient buy," he said.
Such advertising has been slow to catch on, even though the $10 billion US video game market now rivals Hollywood box office sales -- and despite a widely held view that the medium offers big opportunities for product placement and branding.
Nielsen Entertainment expects US ad spending in console and PC games for this year to come in at $75 million. It is seen growing rapidly through the end of the decade, when the research firm sees it reaching $800 million to $1 billion.
The arrival of next-generation consoles from Microsoft, Sony and Nintendo, which connect more players to the internet and open the door to more innovative and measurable campaigns, should help drive up advertising activity, video game companies and their potential sponsors said.
The Entertainment Software Association says the average US video game player is a 30-year-old male.
"That's a pretty good sweet spot for an entertainment company like Playboy," Christie Hefner, chief executive of Playboy Enterprises Inc.
The adult media company this year produced its first video game, a "lifestyle simulation" title called "Playboy: The Mansion."
Certain games are innately ripe for advertising. For example, virtual billboards can create a sense of authenticity in racing, sports and urban action games.
"Gamers actually welcome it because it adds realism in games," said Sam Kennedy, editor-in-chief of video game enthusiast site 1UP.com.
Some publishers used to pay to show certain cars in racing games -- a situation that has now reversed, he added.
Electronic Arts, the world's biggest video game publisher, has ads placed in 11 of its 33 games this year. They include sports titles like "NCAA Football 06," "FIFA 06 Soccer" and "SSX On Tour" in addition to "Need for Speed," said Julie Shumaker, director of sales for online and video game advertising.
Sniffing opportunity, some big advertising agencies have jumped on the bandwagon.
Starcom MediaVest Group was a pioneer in the market, setting up its Play division about two years ago.
Tribal Gaming, part of Omnicom Group, is a new gaming unit with a half-dozen employees. WPP Group's Young & Rubicam's Bounce Interactive Gaming also focuses on ads in games. DeBiasi worked with MarketSource IMS.
Still, EA's Shumaker says it's unusual to see an agency involved in a deal. Advertisers tend to hand the work to their ad agencies only after an agreement is reached, she said, adding that she does almost 75 per cent of her deals directly with the client.
"That concerns me," said Shumaker, who thinks the business needs agency more participation to grow rapidly.
Some advertising executives say in-game advertising has a long way to go to rival other mainstream media.
"I think that one will be a little bit slower in developing," Brian McAndrews, chief executive of internet marketing company aQuantive Inc.
Meanwhile, the video game industry is working to deliver the data that companies want to justify spending money on in-game ads.
To that end, Activision and Nielsen Entertainment this week released their latest study, which suggested that video game ads, when used properly, can increase awareness of a brand as well as positive attitudes toward it.
(Additional reporting by Michele Gershberg in New York)
- REUTERS
Advertisers explore virtual video game frontier
LOS ANGELES - When BP Lubricants USA wanted to raise the profile of its high-performance Castrol Syntec motor oil with ever-elusive young male consumers, it followed them into a popular racing video game.
Like its peers, the unit of BP needs to be where males aged 18 to 34 have
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