It’s important to realize that there are actually a few types of in-game advertising, and within each type there are distinct price models to choose from – and all of which have different price-points. Below we plan to outline each type of in-game advertising, and provide some relative price figures.
Dynamic In-Game Advertising
Dynamic In-Game Advertising is the type of In-Game Advertising that can be inserted or removed inside of video games in real-time using an Ad Server, typically across Console and PC/Steam platforms. This method of in-game advertising usually takes the form of billboards, posters, or banners integrated into the 3D gaming environment. It’s great for time sensitive campaigns, and allows for targeting methods such as geo-targeting, day-parting, and targeting specific games/genres. Dynamic in-game advertising is made possible due to the rise of internet connectivity and online gaming…which allows the ads to streamed in and out of the games while players are playing with an active internet connection.
For dynamic in-game advertising, you’ll be looking at a CPM (Cost Per Thousand Impressions) pricing model. A CPM price model is pretty much the standard model across the premium digital advertising industry. Some digital ad networks charge a CPC price model which stands for ‘Cost Per Click’, meaning brands pay based on how many times their ads get clicked on. But since Dynamic In-Game Advertising is integrated inside of a 3D video game environment, there is no ability or technical way for players to click on the ads…so CPM would be the only feasible price model for dynamic in-game advertising. A good CPM rate for dynamic in-game advertising should fall between the range of $8.00 – $15.00 USD. Other factors that influence the CPM rate will include the overall budget/size of the campaign, the availability of inventory, and if any bulk agency/media buying discounts are applicable.
Static In-Game Advertising
Static In-Game Advertising is the type of advertising that’s programmed directly into a video game. It’s typically integrated into the storyline of the game, and is done so during the development stage, before the video game is even released to the public. It can be compared to product placement in Hollywood movies or television, so once static in-game advertising is put into the game, it’s there to stay forever. This is in contrast to dynamic in-game advertising, which allows the ads to be streamed in and out of a video game even long after a video game has been built and fully released to the public.
Due to the highly custom nature of preparing and implementing a static in-game advertising campaign, it’s nearly impossible to give a precise or accurate quote. A quote or estimate can only come after the advertiser and in-game advertising company can work together to identify which particular game they’d want to advertise inside of, and/or which platforms they’d like to have exposure in (ie platforms like Xbox 360, PlayStation 3, Steam/PC, Unity/Flash/Web, Mobile, etc). The pricing model though will almost always be on a flat-fee basis for static in-game advertising. For medium to highly popular console video games, the flat rate model could fall within in the range of $50K USD for minor and subtle ad integrations, and all the way up to $500K+ USD…again it’s all dependent on the level of integration inside of the game, as well as the expected audience-size/success of the video game containing the integration. So an extremely popular and established video game franchise on a platform like Xbox 360 would be able to command a higher price for static in-game advertising, whereas a small to medium sized game on mobile platforms would probably have a hard time securing large budgets for static in-game advertising.
Advergames are custom video games that are developed for the sole purpose of promoting a company, brand, or product. Advergames are normally commissioned and heavily funded by the brand in question, and they would typically have creative control over most aspects of the development and release of the video game. Advergames can be created for a variety of platforms such as on consoles, computers, mobile, or online/web games.
Advergaming is similar to Static In-Game Advertising, in that it normally requires a significant amount of preparation and customization, and prices will vary from project-to-project but will always be a flat-rate model. Out of all the types of in-game advertising, advergaming will typically be the more expensive option. For a fully functional console advergame, prices can run into the hundreds of thousands of dollars or even into the 6 figure range. For advergames in the form of web/flash and mobile games, prices can be quite a bit lower than console games – as less man-power and resources are needed to create fully functional games on these platforms. Brands would be looking at a price range of anywhere starting at $15K USD up into the $100K+ USD range for advergames on platforms like web/flash/unity and mobile platforms.
To learn more about in-game advertising, or to inquire about running a campaign, feel free to reach out to us!: http://www.rapidfire.com/contact-us/