Adverts in games (was RE: [MUD-Dev] Habbo Hotel...)

[F. Randall Farmer]

> Andrew Wilson wrote:

>> Perhaps another form of payment could come with sponsorship as
>> product placement.  In the Habbo's private room the graphics are
>> much larger than the main communal areas.  The image of the Habbo
>> is large enough to hold a company logo.  So you might be able to
>> see Nike or GAP paying to get their names in the Habbo wardrobe.
>> Users might even wish to pay to wear the logoed clothes, they do so
>> in real-life of course.  How much longer before this is commonplace
>> in games like The Sims?

Michael Sellers responded:
 
> A long time, I think.
 
> Online advertising has been in the process of tanking big time for
> over a year.  If people can't get companies to pay more than a
> pittance for focused banner ads, why would they pay significant
> amounts at all for less-focused ads that get orders of magnitude
> less traffic?  Also, why would a company that is trying to sell a
> product (like EA selling The Sims) want to muddy the brand-waters by
> putting in heavy product placement?  In addition to the potential
> backlash from players, they just weaken their own product (think
> about it: how many billboard companies do you know offhand?).
 
> Advertising in games may happen one day, but not for a long time I
> think.  Not until games have audiences at least an order of
> magnitude or two larger than they are now, at the very least.

Randy Farmer now says....

Integrated/Banner Ads as a way for paying for _any_ type of multiuser
game/MUD/world doesn't work. I've got the numbers and a dead company
to back this up. :-)

It's not hard to explain why this doesn't pay: User attention.

We design worlds so as to be compelling for the user. Why in the world
would anyone stop their compelling experience to follow up on an ad? 
In practice the ads become unwanted distractions that lead to customer
animosity.

You Don't Know Jack has an "interrupted play" model of ads which
clearly follows TV's example: Stop playing/watching now and
watch/interact with the advertisement. I don't know if this model is
profitable, but at least the user can't be playing the game _during_
the ad. And there is a precedent for the model that people understand
(and accept?) The big downsides I do know about is huge ad production
costs and bandwidth issues.

So:

  If you're considering "in-world" ad placements -
      Too expensive, poor results. Don't bother!
  Banner Ads -
      Not worth the overhead and distraction.

Sorry for the bad news.

Randy

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