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This fall Microsoft hopes to change the face of gaming and eventually everyday computing with the release of their newest technology for the Xbox 360; Kinect. Kinect is a specialized motion capture camera that recognizes people and body parts that will enable users to control and interact with the Xbox 360 without a controller using “natural user interface” like gestures and spoken commands. Users can play games by using themselves as the controller and their avatar in the game mimics their every move. This project was introduced to compete against other motion gaming systems like the Nintendo Wii, which has dominated the video game market with their specialty motion capture system for years, and Sony’s recently launched “Wii copy”; the Playstation Move. Microsoft is banking on their unique technology that does not require a controller to overcome its competitors and transfer the technology to different sectors other than gaming.  Although the Kinect doesn’t launch until early November, brands are already finding ways to utilize the new technology as an advertising medium.

So far, companies like Sprint, T-Mobile, and Chevrolet are using the technology to advertise to gamers in innovative new ways with campaigns centered around new games. Chevrolet has placed branded content in the Kinect launch title Joy Ride, a competitive racing game that requires players to make driving motions with their body. Chevrolet has paid for branded content where users can “test-drive” Chevy vehicles in the game and unlock special game content like playable Corvettes and Camaros to race by viewing in-dash video advertisements. Chevrolet has also created a “Kinect friendly” ad that will be part of their campaign for their electric car, Volt, where users can physically explore and interact with the vehicle using Kinect’s interface. Sprint has reportedly sponsored another launch title, Kinect Adventures, with a co-branded contest on Xbox Live. T-Mobile is also sponsoring Kinect Sports, holding various Xbox Live contests.
I am looking forward to experiencing these new ads that take advantage of the emerging technology. There is a lot of potential to create immersive, highly engaging ads on a growing medium that has already proven to be effective. As this technology expands we are likely to experience an advertising renaissance with creative advertisements that have an extreme amount of depth featuring fully interactive content. It will be very interesting to see how the technology is used and what directions it will take the advertising industry.

As mentioned in previous articles, ad placement in video games is on the rise, especially in sports games. As its audience grows along with technological advancements like in-game updates via internet connectivity, video games have become a great medium for connecting with hard to reach demographics. Recently Nielsen studied the effectiveness of in-game ads and found they work very well. The study was commissioned by Electronic Arts for Gatorade and showed that in-game advertisements across their various sports titles including their NHL and NBA games increased household dollars spent on the sports drink by 24%.

Now that it has been proven effective more brands may be willing to add video games as a new advertising channel. This has been the first real study on its effectiveness relating directly to sales and could mean the start of an advertising boom in mainstream video games. The new challenge will then lie in using effective product placement without taking away from the user’s gaming experience.

According to a recent article, the California Legislature is currently considering a bill that would get the ball rolling to introduce digital license plates. Instead of the stamped metal plates that have always been used, California motorists can expect a digital system that displays their license plate number when the car is in motion. However, if the car stops for over four seconds the plate’s display switches to an advertisement for a product or service. The only reason this seemingly crazy idea is being considered at all is the potential ad revenue for the state (which is currently $19 billion in debt) by drivers turning their cars into small mobile billboards. This could also give drivers the opportunity to customize their plates even further than current vanity plates or plate covers allow. If this happens, California would be the first state to use the technology if the DMV recommends it. Although this could be a potentially dangerous distraction, it would open many new possibilities for ad space. Also, if GPS functionality was added it could allow for location based ads. It will be interesting to see if this bill is passed and if these innovative ads will make it past prototyping. Widespread implementation seems like it would be very expensive, setting up all California drivers with digital plates and what would the ad space be worth if it was on every car?

In an attempt to draw users back in, Myspace has begun revamping their site for a comeback. As more and more users shift over to social network applications like Facebook and Twitter, the former leader Myspace has been surpassed while quickly losing market share. With their lack of growth compared to the enormous rise in Facebook users and Twitter boom, Myspace isn’t the juggernaut it used to be. For years they were the undisputed king of social networking but they got complacent and failed to innovate, this presented an opening to Facebook and now they dominate the medium with over four times as many members. While Facebook has taken over, Myspace has remained profitable bringing in about $350million a year mainly from advertising, but this too could change very soon. They have a shared advertising revenue deal with Google currently that has been keeping the company profitable but with the recently announced Google Buzz social networking platform it is unclear if they will renew their deal. Between these problems and a recent management shakeup, Myspace has a lot of work ahead to accomplish their goal, but their strategy seems solid.

Instead of looking at Facebook and Twitter as competitors, Myspace is now changing their strategy and looking towards these once rivals and potential partners for distribution and synchronization. They have already synced services with Twitter so tweets or status updates on one service are automatically posted to the other.

They are also shifting their target market and content strategies. They will now appeal to a younger crowd focusing on music, movies, and games by using the service to discover new music, view movie trailers, and play games in a social environment. Instead of being a “place for friends” their new mantra will be “Discover and be Discovered” moving further away from social and focusing more on the media aspect. This rebranding will include simple, clean pages to avoid the unappealing cluttered pages that have become expected with the original design. They are investing a lot in their gaming channel by working with social-gaming firm Playdom. They have also teamed with Microsoft to improve their mobile web services and revamp its look. Lastly, they are keeping music a main focus.

Myspace Music has been an extremely useful and popular medium for bands to increase exposure and connect with fans. While Myspace’s user base is down compared to Facebook, their music channel is still considered quite successful. If they can continue their success of this channel while improving their video and game channels, it could prove successful.

Many argue that Myspace is already done and their failure to innovate along with other social networking sites has already sealed their fate. With social networking dominated by Facebook, Google’s new social network, and Apple trying to take over distribution of digital media there may not be room Myspace. But with their new strategy to reinvigorate the brand and network, their resources backed by their parent company News Corp, and their still popular Myspace Music channel I believe there still is a chance for them to find their niche and survive, it just won’t be focused on networking with friends. It will be very interesting over the following months to see how they choose to re-brand and if their strategies will work.

The newly redesigned website for Chado Advertising & Design has officially launched. This new site has been redesigned to have a new look similar to this blog, a flash slideshow showcasing recent work, and has additional content added. There are also links to all of Chado’s social media pages, more detailed case studies, team bios, and an added link to XCD, our cross cultural design social network. This new website is easier to navigate and has a new look more consistent with Chado Advertising & Design. Check it out at www.chado-design.com!