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									Advertising and Video Games
July 2008

            © 2008 Media Contacts :: Havas Digital
Lead Contributors
                       Noelle Sadler
                       Project Manager
                       Global Media Investments

                        TS Kelly
                        SVP, Director of Research & Insight,
                        Havas Digital

                        Anthony Rhind
                        Chief Strategy Officer,
                        Havas Digital

If you want to receive the MC Insight periodically, please subscribe to

                © 2008 Media Contacts :: Havas Digital

1. Introduction                                                3
2. What’s Out There?                                           5
3. Advertising Models and Tactics                             10
4. Planning Your Strategy                                     17
5. Endnotes                                                   19
6. Glossary                                                   20
7. Contacts                                                   21

                     © 2008 Media Contacts :: Havas Digital
             1. Introduction

Video games may conjure up images of teenage boys staring intently at screens, but in recent years, gaming
has gone mainstream. Over 40% of U.S. households own a video game console system, and more than 120
million people regularly play video games on their PC or on a console, according to DFC Intelligence. Strategy
Analytics predicts the video game console installed base should reach 150 million worldwide by 2010
(Figure 1).

                   Figure 1

                   Video Game Console Sales, Households and
                   Installed Base Worldwide, 2008-2012
                                                    2008     2009     2010   2011    2012
                   Sales (millions of units)        48.9     42.5     31.5   20.0    11.8
                   Households (millions)            70.2     97.0    111.6   112.4   102.2
                   Installed base (millions)        95.0     130.9   150.2   151.2   137.5
                  Note: excludes handheld gaming devices

Marketers have traditionally shied away from gaming: violent themes, paired with the perceived user
– teenage boys with minimal purchasing power – don’t do much to make games attractive. But recent
advances in animation and in communications technology mean that today’s games offer much more
variety – and they appeal to multiple demographics, including men, women and seniors.

In fact, the gaming industry now generates more revenue than box office sales, movie rentals, and book and
music sales. In 2006, video game revenues soared to $12.6 billion (+19% year to year), compared to U.S.
box office receipts at $9.5 billion, flat from 2005. 1 Worldwide, video game and interactive entertainment
revenue reached $33 billion in 2006. 2 According to Jupiter Research, the time U.S. teens spend with video
games is now on par with radio, mobile devices, and music, and right behind watching television
(Figure 2).

                                 © 2008 Media Contacts :: Havas Digital

                    Figure 2

                                        Cumulative Time Spent on Video Games in
                                        League with Radio Cell Phones, and Music

                                                                            Mean            Median
                              12                                                                                    11
             Hours per Week   10        10
                              8                                                                                          7
                              6                          5                                                 5
                                               3                             3
                              2                                 2                            2



























                                                         Platform and/or Application
                                   Source: JupiterResearch/Ipsos Insight Teen Survey October 2007, U.S. Teens ages 13 to 17
                                   Video Games All = Handheld Consoles, PC Casual, PC Action and Console games

Adults play video games at the office, on commuter trains, in coffee shops and in waiting rooms, on PCs
and handheld systems. Thanks to Wi-Fi, they can play most games against live opponents – and see
targeted, relevant messaging that can be updated every time they log on.

In fact, video games have improved so dramatically that Media Contacts believes marketers must give
game-related advertising strong consideration for a spot in any digital media mix.

In this MC Insight, Media Contacts gives you a close look at video game advertising: successful executions
by major brands, ways to conquer the specific challenges of the medium, and ideas that could help your
brand hit a whole new level of engagement with consumers.

And of course, we’re always interested in your particular business issues and questions, whether you’re
already a Media Contacts’ client or just want to know more about this subject. So feel free to get in touch.
Contact your Media Contacts account director, the Media Contacts managing director in your country, or
an MC Insight author. Phone numbers and e-mail addresses are at the back of this publication and at

                                                   © 2008 Media Contacts :: Havas Digital
             2. What’s Out There?

Games, Consoles & Companies

The Atari 2600 and the early systems from Nintendo and Sega are the stuff of legends. But today’s
options blow the old ones out of the water, for marketers and for players. Consumers today can play at
home on a dedicated console, like Sony PlayStation, Microsoft Xbox, or Nintendo Wii; at work on their PCs,
using a CD or DVD, or by going online; and anywhere on handheld portable devices, like mobile phones,
PDAs, Sony PSP and Nintendo DS. Most games get released on multiple platforms so they reach the
maximum number of consumers.

Of course, that makes video game advertising a little more complicated than print and TV, where the same
ad can easily be adapted for different media. But as development of cross-platform game titles increases,
advertising across gaming platforms will likely get easier, too.

                              © 2008 Media Contacts :: Havas Digital
       What’s Out There?

                                               One game – six different formats

In fact, it’s to the video game industry’s advantage to make the whole process simpler for everyone: The top
two features consumers consider when buying a console are backward compatibility (i.e., the ability to play
PlayStation 2 games on PlayStation 3) and the selection of games.

The ones to watch in the battle for consumers’ attention are Sony, Microsoft and Nintendo. Two years into
the current console cycle, PlayStation 2 is still the most highly penetrated platform. 3 According to Screen
Digest, Sony’s PS3 console, which had a slow start in 2007, may be poised for a fast-paced rise in Europe
(Figure 3) and worldwide, likely moving ahead of Microsoft’s Xbox 360 and the Nintendo Wii in the next two
or three years.

                          Figure 3

                                     Europe: installed base by platform

                                             Microsoft Xbob 360
                                             Nitendo Wii
                                             Sony Playstation 3


                Installed Base (m)



                                              2005    2006    2007   2008     2009     2010   2011

                   Source: ScreenDigest, November 2007

So what else drives console sales? Sometimes, a hot game. The mega-popular Grand Theft Auto franchise,
a long-term Sony exclusive, helped boost sales of PlayStation 2. The latest edition, Grand Theft Auto IV, was
released for both the PlayStation 3 and Xbox 360 in April 2008, ending that exclusivity.

                                              © 2008 Media Contacts :: Havas Digital
       What’s Out There?

Microsoft has seen the wildly popular Halo franchise boost worldwide sales of Xbox 360 (currently second
behind Nintendo’s newest entry, the surprise hit Wii, gaining more ground all the time among women and
seniors). When Halo 3 was released in September 2007, it racked up more than $170 million in U.S. sales
on the first day, and $300 million for the entire opening weekend. That’s 5 million copies. About 2.7 million
users played it on Xbox Live in the first week, one-third of the Xbox Live subscriber base. 4

                 Video Games - By the numbers

                                           Source: VGCHartz.com, Global, April 2008

                 Global growth trend of main three consoles
                 Nov ’06 - April ’08

                                         Source: VGCHartz.com, Global, April 2008

                2007 Console Game Sales (U.S. only)
              TITLE                                 PLATAFORM     PUBLISHER         RELEASED        COPIES SOLD
              1) Halo 3                             Xbox 360      Microsoft         September           4.82
              2) Wii Play With Remote               Wii           Nintendo          February            4.12
              3) Call of Duty 4: Modern Warfare     Xbox 360      Activision        November            3.04
              4) Guitar Hero III: Legends of Rock   PS2           Activision        October             2.72
              5) Super Mario Galaxy                 Wii           Nintendo          November            2.52
              6) Pokémon Diamond                    DS            Nintendo          April               2.48
              7) Madden NFL 08                      PS2           Electronic Arts   August              1.90
              8) Guitar Hero 2                      PS2           Activision        November 2006       1.89
              9) Assassin’s Creed                   Xbox 360      Ubisoft           November            1.87
              10) Mario Party 8                     Wii           Nintendo          May                 1.82
                                              Source: NPD, January 2008, U.S.only

                                      © 2008 Media Contacts :: Havas Digital
       What’s Out There?

Core vs. Casual Gaming

Those are big, impressive numbers from companies that excel at creating “core” games. Just as impressive
is the growing popularity of “casual” games, which reach a more mass-market audience. Each provides
opportunities to reach different consumers. For example, core gaming lends itself to in-game advertising,
ads that appear organically in the context of the game. Casual gaming is better suited to advergaming
– simple, easy-to-play games built around a particular brand. More on that later. First, let’s define core and

Core games tend to be highly immersive, and demand ability and skill. They’re developed for a dedicated
console or PC. Top games can take 20 hours or more to complete, and some have storylines that allow for
continued play even after the major goals of the game have been achieved.

Top console games such as Grand Theft Auto IV or Halo 3 are known for excellent graphics and physics
(i.e., realistic control of players, vehicles and weapons), high quality audio and music, elaborate storylines,
engaging characters, rewards for time spent, and multiple side plots and missions .

Meanwhile, a growing segment of core gaming is attracting a more mainstream audience: Web-based
massively multiplayer online games, or MMOGs. Popular MMOGs like World of Warcraft and Second Life let
thousands of players interact simultaneously in persistent environments with great physics. Some are even
free to play. 5

When Second Life launched, it won a frenzy of attention from marketers, and then their scorn in quick
succession. The new worlds, some with the backing of major media companies, are more targeted. Club
Penguin, owned by Disney, in which kids pay $5.95 a month to play with penguin characters, attracts seven
times more traffic than Second Life. Disney is now developing a portfolio of virtual worlds for kids and teens.
Habbo Hotel, based in Finland and operating in more than 30 countries, allows its 8 million teen users to
use the world for free, but charges them for extras for their avatars and environments.

If you want to go deeper into the top virtual worlds, check out the edition of MC Insight called Marketing in
Second Life at mediacontacts.com.

Casual gaming tends to engage a more mass-market audience than core gaming, partly because users
don’t need to spend a lot of time or money. This category includes everything from Solitaire and Tetris to
online games downloaded or played for free. These appeal to different consumers than core games do: While
80% of console gamers are men, 60% of casual gamers are women, most over 35 years old, according to
the Interactive Advertising Bureau.

Casual gaming sites like MSN Games, Yahoo! Games and AOL Games have millions of monthly unique
visitors. Miniclip, the largest casual games space in the EU, is growing rapidly in both North America and
Asia, thanks to downloadable toolbars and games that tend to be more creative than those on Yahoo! or

                               © 2008 Media Contacts :: Havas Digital
       What’s Out There?

                     Console or PC Gamers Skew Young and Male;
                       Casual Gamers Skew Older and Female
                                       100%        8%

               Percentage of Segment
                                                  14%                  23%
                                        80%                                                    41%
                                                  23%                  23%


                                                  55%                                          59%
                                        20%                                                                      45%
                                              PC or Console      Casual Gamers         PC or Console       Casual Gamers
                                                 Gamers                                   Gamers

                                                  Age 18 to 34   Age 35 to 44   Age 45 to 54     Age 55+   Men    Women

                                       Source: JupiterResearch/Ipsos Insight Consumer Survey, June 2007,U.S. Only

Casual gaming has boomed in recent years. In the United States alone, the industry went from almost zero
in 2002 to well over $600 million in 2004. Some industry experts say the casual gaming market will surpass
$2 billion in 2008. 6

There are several reasons for this. First, an increase in investment by publishers, retailers and developers.
Electronic Arts created a casual games publishing label in 2007.

Second, consumers are spending more time online, and broadband gives them better access to games.
Experts suggest that as games become increasingly available online and elsewhere, consumers will play
more and more.

Finally, the high cost of console games might have an impact. New console titles like Halo 3 or Grand Theft
Auto IV can run US$50 or more and require hours spent learning intricate storylines and game controls. For
consumers who just want a few minutes of fun, casual games are the answer.

Casual gaming sites use two basic revenue models: ad-supported (pogo.com and miniclip.com), where
games are free to play, and subscription (realarcade.com, zylom.com and gametap.com), where consumers
can try before they buy.

Casual gamers are increasingly social, sharing games and comparing scores, which in turn encourages
more play. The New York Times reported in March 2008 that Scrabulous, which can be played on Facebook,
had rocketed to 700,000 players a day, with 3 million registered users.

Challenge: Hitting the right demographic. Casual gamers playing word and puzzle games online are not
likely the same demographic as core gamers playing Halo 3 on Xbox. Choose your placement with that in
mind, so your ad feels organic to the game – and to the players.

                                                     © 2008 Media Contacts :: Havas Digital
              3. Current Advertising Models

Advertising in video games can be broken down into two broad categories: advergaming and in-game

Advergames are commissioned or sponsored by a marketer, and designed from scratch around a brand or
product. They deliver brand messages, drive web traffic and build awareness. Most can be played for free.
It’s a simple value exchange: Users give a brand their attention, and the brand provides an entertaining
experience. 7

Advergames are incredibly flexible. They can be developed
for IM applications, banner ads, mobile devices, interactive
billboards, web sites, Facebook applications, widgets and

And they can outlast a typical ad execution. In 2006, Reckitt
Benckiser launched the Flash-based clearahill advergame
(image right) for teen skincare brand Clearasil. Two years
later, the game is still popular, drawing traffic to a microsite
and links from multiple gaming sites.

An Advergame by Orbitz (image left) that originally launched
as a series of mini-games in banner ads and pop-ups
eventually evolved into its own microsite.

                                                            The best advergames keep things simple but offer
                                                            players a real challenge. FreeRice, an advergame
                                                            that raises money for the U.N. Food Program, is
                                                            just a multiple-choice vocabulary game that gets
                                                            harder as you progress. At 10 to 20 grains of rice
                                                            per correct answer, FreeRice players generated
                                                            nearly 35 billion grains of rice between October
                                                            2007 and May 2008.

                                © 2008 Media Contacts :: Havas Digital
       Current Advertising Models

Here’s another great example of advergaming: the 2006 series of branded Xbox games from Burger King
(image below). These games integrated King, a quirky character from BK marketing campaigns, and were
an immediate hit.

The advergames were sold exclusively in BK restaurants for $4 each with the purchase of a Value Meal.
Brand awareness went up, Value Meal sales spiked, and Burger King sold more than 2 million games (US$8
million) in just four weeks, creating an entirely new revenue stream.

In-game advertising integrates a brand into a pre-existing narrative. In-game ads can be static, meaning
they stay the same every time the game is played, or dynamic, meaning they can be manipulated via an
Internet connection to precisely target the player.

Static in-game ads are typically hard-coded during development and appear as billboards or props, like
vending machines, or on game menus and loading screens. Usually, a player can interact with branded
billboards, signs and more to get information he needs to progress in the game.

 A player fuels up at a Shell-branded station in Test                McDonald’s and Coca-Cola in Doom 3.
 Drive Unlimited by Atari for Xbox 360. And why not?
 Look at those gas prices!

 This static in-game ad for Unilever’s AXE in the 2005 Ubisoft game Splinter Cell: Chaos Theory is high impact and
 extremely realistic, both characteristics of core games. Plus, it kind of makes us feel like we could ride a power
 line. Now that’s good advertising.

                                 © 2008 Media Contacts :: Havas Digital
       Current Advertising Models

          Two-thirds of all video game advertising spend in the U.S. will be ‘in-game’ by 2012.

                                                2007      2008      2009      2010      2011      2012
          In-game advertising* total            $295      $403      $511      $589     $625       $650
          Console and PC-based                   $90      $117      $143      $162      $169      $172
          Web-based                             $205      $286      $368      $427      $456      $478
          Advergames                            $207      $262      $311      $339     $344       $350
          Video Game advertising total          $502      $665      $822      $928     $969 $1,000

                   Source: eMarketer, February 2008, U.S.only, excludes mobile game advertising

Dynamic in-game ads can be updated every time the game is played, if the PC or console is connected to
the Internet. The ad-serving agency factors in the user’s geographic location, the day of the week, time of
day, length of play, and any other available user information. Marketers can get data on exposure time and
ad type, and agencies can optimize performance.

   T-Mobile and McDonald’s in EA’s Battlefield 2142. When this game first included dynamic ads in 2004,
   gamers derided it as spyware – but they still played.

This kind of highly targeted advertising is currently available on a wide range of titles for the PC and Xbox
360 (Xbox Live). Sony recently announced it would allow all ad-service companies to reach its PS3 user base
(except Microsoft’s Massive, a huge competitor). Nintendo has a no-advertising policy for its consoles.

Challenge: International releases. An ad server can deliver specially targeted ads to a gamer in France
and a gamer in the U.S., even if they’re playing each other. But static in-game ads are trickier. The right
ads have to be placed in each version of the game during development. Red Bull, for instance, is a perfect
fit for many game titles, in many countries – but not in Scandinavia, where the stuff is illegal. There, that’s
a little beverage trivia for you.

                                © 2008 Media Contacts :: Havas Digital
       Current Advertising Models

Variations on existing advertising methods

Now that we have the ground rules established, let’s talk about variations. These work for advergames and
in-game advertising:

Pre-game, post-game and interstitial ads: These can roll before gameplay even begins – for example, as
a loading screen – or after a specific level or time period, or at the end of a game session.

In-game interstitial ads by MacDonald’s in the online game Power Soccer (abroad, Power Football). One
distinct advantage of video-game sports over real-life sports: no diet restrictions.

Sponsorships allow a marketer to own 100% of the territory in and around an existing game. A brand can
sponsor a gaming tournament, a zone, or even the release of exclusive content, like unlock codes for special
features, hidden items, extra levels and more. 8

Product placement in video games works a lot like placement in movies or television, with opportunities
for integrated brand messaging, sponsorship, and use of products or services by the characters. These
elements are typically hard-coded into games and can require long lead-times, usually nine to 18 months
prior to release. Rising game development costs (now into the millions) sometimes force marketers to make
a significant investment upfront.

                                                It can be worth it: Your brand could be permanently as-
                                                sociated with a high-profile entertainment franchise. In
                                                the 2003 film Tomb Raider: The Cradle of Life, Lara Croft
                                                (portrayed by Angelina Jolie) traded in her Land Rover from
                                                the first film to drive a specially equipped Rubicon edition
                                                Jeep Wrangler. The Wrangler Rubicon (image left) was also
                                                one of several Jeep vehicles featured in the 2006 Eidos
                                                game, Lara Croft Tomb Raider: Legend.

                              © 2008 Media Contacts :: Havas Digital
       Current Advertising Models

Challenge: Long lead-times. Some games take three to five years to produce, well beyond the shelf life of
most ad campaigns. Since no one ever knows whether a game will be a hit, a pact upfront is a gamble. You
could wait for the sequel – but if the first is a blockbuster, the price of a deal will rise accordingly.

Co-branding gathers many of the best elements of video game advertising. For example, Lego announced
in May 2008 it was building a subscription-based MMOG for kids, Lego Universe. Players have to spend
virtual money to buy bricks, but they’ll earn more just by playing the game.

Game skinning lets a brand sponsor display units around game content and includes custom branded
integration in the game. This isn’t as expensive as other executions but also doesn’t allow for as much
creativity, as it’s akin to recycling an existing game.

Challenge: Gamer backlash. This is one of the biggest potential pitfalls. If advertising is too obvious or
clunky, or it detracts from the game, you’ll get the opposite of the reaction you’re looking for. Plus, according
to Nielsen research, well-placed ads can actually further the plotline of a game and expand the consumer
base for a brand. When in doubt, ask whether the player is getting any added value from your ad placement,
and whether its placement will strike the player as organic. Yes? You both might win.

The Major Players of In-Game Advertising

Media Contacts works directly with all of the major technology providers currently in the in-game advertising
space. The following is a brief overview of the three largest firms. Marketers should contact their local
Media Contacts office to arrange an in-depth briefing on the advantages and challenges of working with
many of today’s emerging providers.

Massive Incorporated, a wholly owned subsidiary of Microsoft as of 2006, delivers dynamic in-game
advertising for more than 40 game publishers. 9 Massive can target users by geography, time, day,
session length, and other user information. Massive software codes must be integrated into games during

Massive’s relationship with Microsoft restricts it to PCs, Xbox and Xbox 360 platforms. On the flip side,
marketers who want a piece of Xbox 360 or any Microsoft game must work with Massive, since no other
companies are permitted to serve ads in its games.

It’s restrictive, but apparently it’s effective. In a 2007 study by Massive and Nielsen Entertainment, 10 in-
game ad campaigns in the Massive network got results:

         Average brand familiarity increased by 64%
         Average brand rating increased by 37%
         Average purchase consideration increased by 41%
         Average ad recall increased by 41%
         Average ad rating increased by 69%

                                © 2008 Media Contacts :: Havas Digital
       Current Advertising Models

Across major advertising categories, the metrics were just as impressive:

        Automotive: 69% increase in purchase consideration
        Consumer packaged goods: 71% increase among those who consider the
        snack food advertised a “cool brand”
        Quick service restaurants: 39% rise in the rating of the featured QSR
        Technology tools: 70% increase in brand rating for the featured tech client

In September 2007, Double Fusion announced it would make its “fusion.runtime” ad solution available to
publishers and developers. This could have major implications for the industry. The software lets developers
build advertising support into their titles even after code development is complete, including back catalog
titles. All publishers need is a simple patch.


  In March 2008, Massive renewed its ongoing relationship with game developer Electronic Arts. The
  agreement means that popular EA titles such as Madden NFL Football, NBA Live, NHL Hockey and FIFA
  will be on the Massive ad network for an additional two years, through 2010. Well played, Massive.

That means old titles can be re-released and sold at a significant discount (or given away for free), since
publishing and distribution costs can be covered via marketing partnerships. And unlike Massive, Double
Fusion offers an array of ad solutions: dynamic ads, static in-game advertising, product placement and


  In April 2008, Double Fusion deepened its involvement in virtual worlds by inking a sales agreement for
  Habbo’s ad inventory in the U.S. Double Fusion has worked with SK Telecom’s Cyworld, a virtual world
  in South Korea, where nearly everyone has an online presence.
                                                                       Source: Double Fusion company web site

IGA Worldwide, Inc. also boasts a proprietary ad-serving network, Radial. It provides strategic
consulting services, including integrated product placement and co-promotion, through its wholly owned
communications consultancy, Hive. 11

Radial 2.0, announced in January 2007, includes support for Adobe Flash SDK for advertising in Flash-
based games, an advanced web-based ad booking system, city-level geotargeting, and encrypted local ad
cache to complement existing two-way 1024-bit secure traffic encryption. 12

                              © 2008 Media Contacts :: Havas Digital
       Current Advertising Models


  In October 2007, IGA Worldwide announced a deal with NBC Universal Digital Media, in which the NBCU
  sales team gained access to part of IGA’s premium in-game ad inventory and permission to create
  customized packages for NBCU clients on the IGA network.

Challenge: Tracking. Metrics are still evolving. Nielsen has partnered with Massive to provide tracking
and metrics for its network; Nielsen has also announced its own GamePlay Metrics for all in-game ads. As
for advergaming, click-through is fairly easy to track and monitor, but the amount of time a player spends
with an ad is sometimes more important than the number of impressions. For both categories, there’s a lot
of room for improvement.

                              © 2008 Media Contacts :: Havas Digital
             4. Planning Your Strategy

These days, consumers expect marketing to be creative, engaging and even useful, just like any other digital
content. Video game advertising, specifically, is going through such an evolution, offering marketers new
methods to reach consumers in ways that make a positive impact. Brands can become part of the storyline
in top console games, engage consumers with advergames, and participate in virtual worlds.

In addition, the largest game releases such as Grand Theft Auto IV and Halo 3 are of such high quality, they
create bigger social events than some of the largest Hollywood blockbusters. In addition, like Hollywood
blockbusters, many major games titles are released globally, offering dynamic advertising opportunities
as ‘local’ as the marketer desires. All that flexibility means there’s a fit for almost any brand and any
demographic, from teens to moms, and from businesspeople to seniors.

We hope this introduction to the marketing actions associated with gaming has given you reason to investigate
opportunities for your brands. Please do not delay adopting this channel as part of your marketing mix as
the number of people interacting with both core & casual games has already reached mass market levels
in North and South America, Western Europe, Asia-Pacific and elsewhere.

                               © 2008 Media Contacts :: Havas Digital
        Planning Your Strategy

As detailed in the chart below, there are a number of viable options for both creativity and customization in
the video game advertising space. Marketers can choose existing techniques for their brands, or work with
Media Contacts to create new solutions to fit their unique advertising needs.

                   In-game static placements           In-game dynamic placements         Advergaming
                   Ads are hard-coded into the game Ads are placed in game                Developed from scratch as part of
                   environment during the           dynamically based on time, day,       a larger marketing program, both
   Description     development process              geographic location, session          online and offline to deliver a
                                                    lenght and user info (if available)   specific value proposition to a
                                                                                          specific demaographic target
                   Highly immersive environment       Immersive with a possible ‘social   Either online or downloaded,
   Marketing       typically associated with ‘core’   layer’ based on the connected       game environment is typically much
  environment      gamer characteristics              state in which ads are served       more casual and in shorter bursts
                                                                                          compared to in-game delivery
                   All console and PC platforms       Xbox 360 via Xbox Live, PC and      Typically PC (online and offline),
    Available                                         PS3 ( forthcoming)                  PDAs and Mobile handsets

                   Product integration in TV, film and 15 second video ads, genre         Loyalty programs, experimental
   Comparable      video                               specific print, out-of-home        marketing, guerilla marketing

                   Brand awareness, product benefits “Call to action” messaging,          On-going source of affinity,
 Communication                                       immediate response                   awareness, and social interaction

                   Ad-hoc measurement need to         Syndicated services (Nielsen,etc) Analytics such as Artemis to
                   measure brand lift and ROI         to project reach, limited exposure determine delivery, interaction,
  Measurement                                         metrics from ad serving entities   opt-in rates,\ and other response
                   Anywhere from 6 months to 2        Real-time delivery                  4 to 6 months
  Development      years based on game
      time         development process

                   Publishers: Sega, EA, Ubisoft,     Delivery Networks: Massive      Game developers: Skyworks,
                   Take-Two, Activition/Blizzard,     (Microsoft), IGA Worldwide,     Digital Chocolate, Wild Tangent,
   Key players     Konami, THQ, Sci, Vivendi          AdScape (Google), Double Fusion Enpocket

Source: MPG Research / Media Contacts

It’s a challenging – and rapidly evolving – sector, but Media Contacts believes that gaming has a lot to offer
marketers right now - high attention environment, low clutter, with the additional benefit of sophisticated
ad targeting & tracking in real-time.

Brands must get active now, to test, learn, refine ... if you don’t understand & exploit this new mass
targetable medium now you can be assured that your competitors most certainly will.

If you’d like to talk with us about game-related advertising and your brand, or if you have questions about
this MC Insight, feel free to get in touch. Contact your Media Contacts account director, the Media Contacts
managing director in your country, or an MC Insight author. Phone numbers and e-mail addresses are
located in the back of this publication and at MediaContacts.com.

                                   © 2008 Media Contacts :: Havas Digital
                5. Endnotes

1. Wedbush Morgan Securities. “Entertainment Software Publishing and Retail Report.” May, 2007.
2. DFC Intelligence.
3. “Teen Audience Benchmark, 2007: Xbox 360 Lead Threatened by Enthusiasm for Wii”, Jupiter 2007
4. “Bad Box Office? Blame ´Halo´”, Advertising Age, October 15, 2007.
5. Wikipedia.
6. IGDA white paper 2006.
7. IDGA White Paper 2006.
8. Interactive Advertising Bureau: Game Advertising Platform Status Report, October 2007.
9. Massive, Inc. company web site.
10. Nielsen / Massive In-Game Advertising study, August 2007.
11. IGA Worldwide company web site.
12. Gamasutra.com - Product: IGA Worldwide Releases Radial 2.0 Ad Serving Tech, January 16, 2007.

                                © 2008 Media Contacts :: Havas Digital
             6. Glossary

Advergame – An online or downloadable game where the primary objective of is to deliver advertising
messages, drive traffic to web sites, and build brand awareness

Casual games – These generally have uncomplicated game controls and require less time to play.

Core games – Also known as “traditional” games, these are developed for and delivered on a dedicated
game console (set-top or handheld) as well as CD-ROM or DVD. Core games generally have complicated
game controls and an overall complexity in terms of gameplay or required investment of time.

Dynamic in-game advertising – Advertising placements are served dynamically by a third party and
delivered to connected consoles. Ads are delivered based on players’ geographic location, the time of day,
and other factors, and can be delivered within weeks of the advertiser’s decision to buy ad space in a

In-game advertising – Advertising placements within a video game environment. These advertising
elements may exist as static or dynamic placements or as brand integration or product placement.

MMOG – Massively Multiplayer Online Game, featuring an alternate, persistent world in which thousands
of players can interact simultaneously. These include role-playing games (MMORPG), first-person shooters
(MMOFPS), games of strategy, and racing games, to name a few.

Static in-game advertising – Advertising placements are hard-coded into the game during development
and cannot be changed or removed once a game has been released. These may include roadside or courtside
banners and billboards, and even jerseys or shoes on athletes.

Virtual world – An alternate, persistent world in which thousands of players can interact simultaneously
as in an MMOG, but in which there exists no definitive gameplay. Virtual worlds exist as a form of alternate
reality; users create avatars (pixel versions of themselves – realistic or otherwise) in order to interact with

Xbox Live – Online community component of Microsoft’s Xbox offering, wherein users can compete in real
time against other players around the world, download games or additional game materials, chat through
MSN Messenger, or rent or download movies and television shows. (Sony plans to launch a similar offering
for PlayStation with its Sony Home concept).

                               © 2008 Media Contacts :: Havas Digital
     7. Contact us
We encourage you to contact us directly to discuss, in more details, any concern you may have
regarding this MC Insight issue. We will be happy to assist you.
GLOBAL noelle.sadler@havasmedia.com


     MC Amsterdam                                        MC Barcelona
     Address: Burg. A. Colijnweg 2,                      Address: Avda. Sarrià, 102-106, 9ª.
     1182 AL Amstelveen Netherlands                      08017 Barcelona, Spain
     Phone: +31 0 20 408 90 00                           Phone: +34 93 205 87 71
     Fax: +31 0 20 408 90 01                             Fax: +34 93 280 05 63
     Managing Director: Björn Brouwe                     Managing Director: Gabriel Saenz de Buruaga
     Email: bjorn.brouwer@mediacontacts.com              Email: gabriel.buruaga@mediacontacts.com

     MC Beijing                                          MC Bilbao
     Address: Room 2001, 20/F, Tower B, Global Trade     Address: Elcano 14, Entreplanta Derecha,
     Center No.36 Dong San Huan Road, Dongcheng          48008 Bilbao, Spain
     District, Beijing, 100013, China                    Phone: +34 94 434 07 56
     Phone: +86 10 5923 2923                             Fax: +34 94 410 45 37
     Fax: +86 10 5825 6173                               Managing Director: Gabriel Saenz de Buruaga
     Managing Director: Leon Lu                          Email: gabriel.buruaga@mediacontacts.com
     Email: leon.lu@cn.mediacontacts.com

     MC Bogotá                                           MC Boston
     Address: Carrera 7 No. 71-21 Torre A Piso 12,       Address: 101 Huntington Avenue, 16th Fl, Boston MA
     Edificio Avenida Chile, Bogotá, D.C.Colombia        02199 USA
     Phone: +57 1 325 8341                               Phone: +1 617 425 4100
     Fax: +57 1 317 3464                                 Fax: +1 617 425 4101
     Managing Director: Carolina Jaramillo               Managing Director: Ed Montes
     Email: carolina.jaramilloa@co.mediacontacts.com     Email: edward.montes@mediacontacts.com

     MC Brussels                                         MC Budapest
     Address: Rue Maurice Charlent, 53                   Address: 1117 Budapest, Alíz u.1 Office
     1160 Auderghem, Belgium                             Garden Building 5th Floor (Szerémi;
     Phone: +32 2 349 1560                               u-Hengermalom u.corner), Hungary
     Fax: +32 2 349 1570                                 Phone: +36 1 799 1820
     Managing Director: Stephanie Radochitzki            Fax: +36 1 799 1821
     Email: stephanie.r@mediacontacts.com                Managing Director: Péter Szeder
                                                         Email: peter.szeder@hu.mpg.com

     MC Buenos Aires                                     MC Chicago
     Address: Talcahuano 833, piso 2B                    Address: 36 East Grand, 5th Floor, Chicago,
     C1013AAP, Ciudad Buenos Aires Argentina             IL 60611, USA
     Phone: +54 11 5777 7400                             Phone +1 312 337 4400
     Fax: +54 11 5777 7401                               Fax +1 312 337 3898
     Managing director: Lucas Mentasti                   Managing director: Ed Montes
     Email: lucas.mentasti@mediacontacts.com             E-mail: edward.montes@mediacontacts.com

                        © 2008 Media Contacts :: Havas Digital
Contact Us

     MC Copenhagen                                         MC Dubai
     Address: Jagtvej 169B, DK 2100                        Address: Dubai Media City, CNN Building #2,
     Copenhagen O Denmark                                  Office #511 PO Box 21448 Dubai UAE
     Phone: +45 7733 4300                                  Phone: +971 4366 4100
     Fax: +45 7733 4433                                    Fax: +971 4391 8001
     Managing Director: Soren Bronee                       Managing Director: Joe Hanoun
     Email: soren.bronee@mediacontacts.com                 Email: joe.hanoun@mediacontacts.com

     MC Frankfurt                                          MC Helsinki
     Address: Hedderichstrasse 108-110;                    Address: Arabianranta, 6, Helsinki,
     60596 Frankfurt, Germany                              Finland
     Phone: +49 69 6091 9134                               Phone: +358 4 0746 1441
     Fax: +49 69 610462                                    Managing Director: Ismo Tenkanen
     Managing Director: Jens Hofmann                       Email: ismo.tenkanen@mediacontacts.com
     Email: jens.hofmann@de.mediacontacts.com

     MC Hyderabad                                          MC Hong Kong
     Address: 6-3-899/I, Second Floor, R.V.’s              Address: 32 Floor, Chinachem Building,
     Kamala Castle, Somajiguda, Hyderabad                  Exchange Square, 338 Kings Rd, Northpoint,
     500 082 - India                                       Hong Kong, China
     Phone: +91 40 64563186/66139968                       Phone: + 852 2590 1814
     Managing Diretor: Kushal Sanghvi                      Fax: + 852 2516 5411
     Email: kushal.sanghvi@in.mediacontacts.com            Managing Director: Sean de Cuirteis
                                                           Email: sean.decuirteis@mediacontacts.com

     MC Kuala Lumpur                                       MC Lima
     Address: F-39-11, Level 11, The Crest, 3Two           Address: Av. Victor Andrés Belaunde 147 Torre
     Square, No. 2, Jalan 19/1, 46300                      Real Uno Oficina902 Centro
     Petaling Jaya, Selangor Darul Ehsan, Malaysia         Empresarial - San Isidro, Lima - Peru
     Phone: +603 7628 6658                                 Phone: +511 611 8800
     Fax: +603 7628 6777                                   Fax: +511 611 8803
     Managing Director: Rajeev Balasubrahmanya             Managing Director: Enrique Agois
     Email: rajeev.bala@sg.mediacontacts.com               Email: enrique.agois@mediacontacts.com

     MC Lisboa                                             MC London
     Address: Avenida Duque de Ávila, 46 - 5ºAv.           Address: 11 Great Newport Street,
     1050-083 Lisboa, Portugal                             WC2H 7JA London, UK
     Phone: +351 21 791 3388                               Phone: +44 0 20 7393 9000
     Fax: +351 21 791 3340                                 Fax: +44 0 20 7393 2525
     Managing Director: José Frade                         Managing Director: John McLoughlin
     Email: josefrade@mediacontacts.com                    Email: john.mcloughlin@mediacontacts.com

     MC Madrid                                             MC Manila
     Address: Avda. General Perón, 38, 14ª Madrid          Address: Yehey.com 38/F Discovery Center
     28020, Spain                                          25 ADB Avenue Ortigas Complex, Pasig City,
     Phone: +34 91 456 90 50                               Philippines
     Fax: +34 91 770 15 86                                 Phone: +632 910 6387
     Managing Director: Gabriel Saenz de Buruaga           Fax: +632 910 6420
     Email: gabriel.buruaga@mediacontacts.com              Managing Director: Eduardo Mapa
                                                           Email: eduardo.mapa@ph.mediacontacts.com

     MC Milano                                             MC Mumbai
     Address: Bastioni di Porta Volta, 10                  Address: Brady Glady’s Plaza, Unit 1,
     20121 Milano, Italy                                   2nd Floor, Senapati Bapat Marg, Lower Parel,
     Phone: +39 02 6744 3201                               Mumbai-400 013 India
     Fax: +39 02 6744 3222                                 Phone: +91 22 30036400/ 33
     Managing Director: Georgia Giannattasio               Managing Director: Kushal Sanghvi
     Email:georgia.giannattasio@mediacontacts.com          Email: kushal.sanghvi@in.mediacontacts.com

                         © 2008 Media Contacts :: Havas Digital
Contact Us

     MC Mexico DF                                          MC Melbourne
     Address: Piso 24 Col. Desarrollo Santa Fe             Address: 113 York Street
     01376 Mex DF, Mexico.                                 South Melbourne, VIC, 3205
     Phone: +52 55 9177 6081                               Australia
     Fax: +52 55 9177 6005                                 Phone: +61 3 9693 5988
     Managing Director: Mauricio Vazquez                   Fax: +61 3 9690 5706
     Email: mauricio.vazquez@mediacontacts.com             Managing Director: Nick Behr
                                                           Email: nick.behr@au.mediacontacts.com

     MC Milano                                             MC New Delhi
     Address: Bastioni di Porta Volta, 10                  Address: 30 Haus Khas Village, 3rd Fl, New Delhi
     20121 Milano, Italy                                   110016 India
     Phone: +39 02 6744 3201                               Phone: +91 11 3984 4400/11
     Fax: +39 02 6744 3222                                 Fax:+91 222 491 5766
     Managing Director: Gionata La Torre                   Managing Director: Kushal Sanghvi
     Email:gionata.latorre@it.mediacontacts.com            Email: kushal.sanghvi@in.mediacontacts.com

     MC Paris                                              MC New York
     Address: 11 Square Leon Blum, Puteaux                 Address: 195 Broadway, 12th Floor;
     Cedex F92806, France                                  New York, NY 10007, USA
     Phone: +33 1 46 93 33 33                              Phone: +1 646 587 5000
     Fax: +33 1 46 93 35 37                                Fax: +1 646 587 5005
     Managing Director: Christophe Dané                    Managing Director: Ed Montes
     Email: christophe.dane@havasdigital.com               Email: edward.montes@mediacontacts.com

     MC Riga                                               MC San Francisco
     Address: Kr. Barona Street 36-9, LV 1011              Address: 555 Post Street;
     Riga, Latvia                                          San Francisco, CA 94102, USA
     Phone: +371 2961 5655                                 Phone: +1 415 345 7700
     Fax: +371 6728 5666                                   Fax: +1 415 345 6666
     Managing Director: Janis Krauklis                     Managing Director: Ed Montes
     Email: janis.krauklis@lv.mediacontacts.com            Email: edward.montes@mediacontacts.com

     MC Santiago de Chile                                  MC Sao Paulo
     Address: Avda. Ricardo Lyon 222,                      Address: Rua Luigi Galvani 42, 11º Andar;
     piso 12 of. 1201-B Providencia 7510125                Conj 125; Brooklin 04575-020
     Santiago de Chile, Chile                              São Paulo, Brazil
     Phone: +56 2 714 8100                                 Phone: +55 11 6889 5650
     Fax: +56 9 865 3083                                   Fax: +55 11 5506 4753
     Managing Director: Gonzalo Parra                      Managing Director: André Zimmermann
     Email: gonzalo.parra@mediacontacts.com                Email: andre.zimmerman@mediacontacts.com

     MC Shanghai                                           MC Singapore
     Address: Room 8011-8012, 8/F, Novel Building          Address: 3 Anson Road #06-01
     No. 887, Huaihai Zhong Road.                          Springleaf Tower 079909, Singapore
     Shanghai, China, 200020                               Phone: +65 6317 6698
     Phone: +86 21 6467 6368                               Managing Director: Rajeev Balasubrahmanyam
     FAX: +86 21 6467 6369                                 Email: rajeev.bala@sg.mediacontacts.com
     Managing Director: Leon Lu
     Email: leon.lu@cn.mediacontacts.com
     MC Sydney                                             MC Tallinn
     Address: Level 16, Town Hall House 456                Address: Pärnu mnt 102C, Tallinn,
     Kent Street, Sydney NSW 2000, Australia               Estonia
     Phone: +61 2 9266 1701                                Phone: +372 669 1000
     Fax:+61 2 9283 9024                                   Fax: +372 669 1001
     Managing Director: Nick Behr                          Managing Director: Kaarel Oja
     Email: nick.behr@au.mediacontacts.com                 Email: kaarel.oja@ee.mediacontacts.com

                        © 2008 Media Contacts :: Havas Digital
Contact Us

     MC Toronto                                            MC Valencia
     Address: 1920 Yonge Street                            Address: C/ Roger de Lauria, 19-4c, 46002,
     Toronto Ont M4S3ER, Canada                            Valencia, Spain
     Phone: +1 416 480 7965                                Phone: +34 96 353 08 74
     Fax: +1 416 480 6666                                  Fax: +34 96 351 15 69
     Managing Director: Chris Williams                     Managing Director: Gabriel Saenz de Buruaga
     Email: chris.williams@mediacontacts.com               Email: gabriel.buruaga@mediacontacts.com

     MC Vilnius                                            MC Warszaw
     Address: Jogailos 4, Vilnius,                         Address: ul Postepu 13; 02-676
     Lithuania                                             Warsaw, Poland
     Phone: +370 5249 7063                                 Phone: +48 22 843 66 60
     Fax: +370 5269 0100                                   Fax: +48 22 843 66 61
     Managing Director: Vytautas Kubilius                  Managing Director: Slawek Kornicki
     Email: vytautas.kubilius@lt.mediacontacts.com         Email: slawek.kornicki@mediacontacts.com

                        © 2008 Media Contacts :: Havas Digital

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