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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.

The super popular Facebook app/real-time farming simulator FarmVille has recently began a cross-promotion campaign with 7-Eleven convenience stores. The cross-promotional campaign features signage and Farmville branded snacks. The campaign also introduces limited edition Farmville items that are only available with the purchase of 7-11 FarmVille Food. The items, which are unlocked with special codes on the product packaging, include water towers, swimming pools, and sandwich carts. These two brands seem like a strange fit for a cross-promotional campaign; FarmVille is associated with organic farming and fresh produce which people usually don’t associate with 7-Eleven. 7-Eleven will also run similar campaigns with other Zynga Facebook game titles like Mafia Wars drink cups with promotional codes for in-game items.

Although this campaign seems absurd and a very odd fit for both brands it is opening the doors for increased cross promotion with products and unlock-able virtual content in video games. If proven successful, this type of campaign could become commonplace where players will purchase other products to gain an edge in their game or unlock new features. Special downloadable game content is already available with game pre-orders or for purchase via online services so this doesn’t necessarily require new technology.

This January, to market their new game MLB 2K10, video game developer 2K Sports put up a $1 million prize for the first person to pitch a perfect game under specific conditions. The new game features all new pitching mechanics for improved gameplay and to advertise the improvements over last year’s MLB 2K9 they put up the money for the contest. They figured this new strategy would build hype for the game’s release, persuade more players to buy the game for full price on the day it is released, and invest more time playing the game. They originally estimated that it would take weeks for players to achieve the supposedly difficult feat but a mere 24 hours after the game was released they had a winner. After going through the rigorous confirmation tests to certify a legitimate perfect game, the winner was just recently announced.

Wade McGilberry, a 24 year-old Alabama resident won the cool million in just 90 minutes of playing the game on his Xbox360. McGilberry, playing as Atlanta Braves pitcher Kenshin Kawakami pulled through with a 27-up, 27-down contest relatively quickly. Although the contest succeeded in generating buzz and received positive response from fans, 2K Sports had to pay the $1 million lump sum out of pocket. Insurance companies couldn’t come up with the odds of throwing a perfect game so 2K Sports couldn’t take out insurance on the contest.

As the video game market continues to significantly increase, developers are constantly looking for unique and exciting ways to hype their new games. While some tactics have been quite successful (and others fail miserably) it will be interesting to see if contests become a new trend to increase release day customers.

Product placement has always been a bit of a controversial topic in advertising. Some feel that it is unethical pitching consumer products and brands in mediums meant to entertain and can be seen as disrespectful to the viewer trying to sneak in blatant advertisements. I have usually taken the stance that it is acceptable in most cases and can usually add to the viewer’s experience. Placing real products in television programs and movies makes the film’s universe seem more realistic and, as long as the brand being represented doesn’t take artistic control away from the writers, actors, and everyone else involved in production, it is an ultimately good thing. Also with the rise of DVRs, Tivos, and streaming video with the capability to skip commercial breaks, traditional television commercials are becoming less effective and being seen by relatively fewer viewers. To remedy this situation it makes sense that ad dollars would be spent on adding the brand directly to the content for maximum exposure.

AMC’s Mad Men does an excellent job of realistic product placement; the advertising firm on the “period piece” show has real brands as clients such as Lucky Strike cigarettes, Heineken Beer, and Hilton Hotels. They also use retro ads to make the 1960s they portray more realistic and engaging.

Another example of well-executed product placement is a recent episode of ABC’s Modern Family, where one of the main characters was very excited about the release of the iPad coinciding with his birthday and not only did the iPad make a cameo, it was the focal point of the episode. The main storyline was about his family going to great lengths to buy the hot new product in time for his birthday. It was mentioned throughout the episode by name numerous times with testimonials on how awesome it will be. Viewers were also treated to a demonstration at the end when the character finally received his new iPad with 37 seconds of screen time.  The episode was very well received with about 9.5 million viewers making iPad’s product placement work close to $1 million. Surprisingly, Apple did not pay a dime for this high profile placement! They did a great job of maintaining the show’s integrity while still incorporating a product placement.

This recent example immediately reminded me of past Seinfeld episodes where products and brands like Junior Mints, Bosco, Drake’s coffee cakes, and even Kenny Roger’s Chicken Roaster restaurants were the main focus of the episode and moved the storyline along playing an integral part of the episode’s plot.

Another medium where we seen increased product and brand placement is videogames. Although much different than television the same theory applies; as long as it doesn’t take away from the content and adds a touch of realism to the game’s universe it can be done ethically. So far it has mainly been sports games that feature real brands and products that add realism to the game’s universe with in-game advertisements and sponsors. For example, in every game in the Tony Hawk’s Pro Skater series the player can skate on real skateboard decks, wears real clothing, and be sponsored by real companies. These in-game placements added value to the player’s experience while enriching the game’s universe.Although product placement in video games has been done well in recent years, it seems to be changing. It was recently reported that the next title in the wildly successful Metal Gear Solid franchise, Metal Gear Solid: Peace Walker will feature product placement for brands like Axe body spray, Doritos, Walkman, and Pepsi Next (a flavor currently available in Asia only). This wouldn’t be a problem in most games but this game’s storyline takes place in the early 1970s, long before any of these products were available. Discussion boards and blogs are already going nuts with Metal Gear’s rabid fan base and looks like it is already starting to backfire.

I believe that content creators have responsibility when determining whether or not to include product placement. They should be the gatekeepers to determine if including brands will add value or cheapen the consumer’s experience. Product placement is becoming more and more necessary as the industry changes but ethical considerations must be taken.

Video game developer Ubisoft just released an exciting new trailer for the newest release in the Tom Clancy series Ghost Recon, Ghost Recon: Future Soldier. Instead of showing game footage the new ad opted for live action with visuals and special effects that parallel a big budget movie. Using real actors playing out scenes as the game’s characters make the game’s world seem more realistic and move the focus on the storytelling rather than the actual game play. It also does an excellent job using special effects to showcase the game’s high tech gadgets and weaponry without taking away from the storyline. This ad is extremely effective because it is exciting, different, and gives the viewer a realistic, captivating glimpse into the world of the game. There have also been reports that this was merely a teaser and a longer twenty-minute trailer/short film will be released later this year.
Using movie quality, live-action sequences for game trailers is becoming increasingly popular after the groundbreaking ads released for Halo 3 by District 9 director Neil Blomkamp. Following this popular spot released in 2007, there have been successful live action trailers for last year’s Halo: ODST and Assassins Creed 2.
One could speculate that these types of ads are being released in hopes of building hype and gaining support for a full-length movie adaptation of the game. Movies based on video games are becoming increasingly popular (and better) with the upcoming release of Prince of Persia next month and the seemingly non-stop speculation of a Halo feature. Regardless of the reasoning, these cinema style commercials are very effective and hopefully become a long-standing trend in game advertising.

According to a recent study from the research firm TNS in conjunction with ESPN and Electronic Arts, 38% of sports video gamers spend at least as much time playing sports games as they do watching the same sport on TV during its season. This study suggests that advertisers are missing a major opportunity with in-game advertising. The sports gamer demographic is 75% male and half are between the ages of 18 and 34, on average they are single and have a disposable income. This demographic is increasingly difficult to reach using traditional media and sports games could be the ideal outlet. First, it would be very easy to implement; all sports games now feature online support and are constantly undergoing content updates, this would allow advertisers to place updated brand messages and ads into the updated game content so the in-game ads constantly change if the player is playing online or not. Also it would add to the authenticity of the game; broadcast sports already have many ads and brand messages displayed on the playing field and having the same look in the virtual environment would make the game more realistic while providing a new, largely untapped ad space. While this new medium is just starting to gain momentum, I predict this ad space will becoming increasingly effective and sought after.