In-Game Advertising Pricing and Costs
In response to the numerous 1-line email inquiries we get from potential advertisers with regards to in-game advertising pricing, we’ve decided to do up a nice blog post. Plus, after doing a little research of my own on Google and other search engines, I failed to find a decent article that discusses in-game advertising costs and pricing.
It’s important to realize that there are actually a few types of in-game advertising, and within each type there are several options 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
This is the type of In-Game Advertising that can be inserted or removed in real-time, inside of Console and PC video games. This method of in-game advertising usually takes the form of billboards, posters, or banners integrated into the 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.
For dynamic in-game advertising, you’ll be looking at a CPM (Cost Per Thousand Impressions) pricing model. The CPM rate should fall between the range of $4.00-$12.00. Other factors that influence the CPM rate will include the overall budget/size of the campaign, the availability of inventory, and if an agency/media buying discount is applicable.
Console Integration takes the form of square tiles situated throughout the Xbox Live dashboard. It’s actually not technically an ‘in-game’ channel, due to the ads being present inside the video game console and not in the games themselves. Nonetheless, it’s still one of the best ways to reach the video game playing demographic.
For Console Integration, you’d be looking at a CPM based price model. The CPM rates are on the higher end, within the range of $25.00-$35.00, but this is due to the proven success and incredibly high demand from many of the World’s top brands and media buyers.
Static In-Game Advertising
Static In-Game Advertising is the type of advertising that’s programmed directly into a game. It’s integrated into the storyline, and is done so during the development of the game. It can be compared to product placement in movies or television, so once static in-game advertising is put into the game, it’s there to stay forever.
Due to the custom nature of preparing and implementing a static in-game advertising campaign, it’s nearly impossible to give an accurate quote. A quote or estimate can only come after the advertiser and in-game advertising company can work together to align the “advertisement” with the appropriate video game in the development stage. The pricing model though will almost always be on a flat-fee basis. For medium to large-scale console games, it could lie in the range of $50K all the way up to $500K, depending on the level of integration and expected audience-size/success of the video game containing the integration.
Advergames are games that are developed for the purpose of promoting a company, brand, or product. Advergames can be created for a variety of platforms such as consoles, mobile, or online games.
Advergaming is similar to Static In-Game Advertising, in that it requires a bit of preparation, and prices will vary from project-to-project. Of all the types of in-game advertising, advergaming will typically be the more expensive option. For fully functional console games, prices can run into the hundreds of thousands or more. For advergames in the form of flash games or and mobile games, prices can be quite lower than console games – falling within the range of $15K-$100K+.