MaxxoMedia Digital Media and Entertainment Trends

From Kenradio.com

Video Games have emerged as a main-stream entertainment medium that generates worldwide revenues of about $25 billion in hardware and software sales. Surpassing box office revenues, movie rentals, book and music sales, Video Game revenues reached $12 billion in the US in 2006, according to a study by Interactive Advertising Bureau.

* Over 40% of households have a video game console system
* Over 120 million people play video or computer games in the U.S.
* Personal Computer Gamers are expected to reach 80 million in 2007 and up to 99 million in 2012
* Console/Online gamers is expected to reach 6.9 million in 2007 and up to 18.5 million by 2012

The integration of online games across all hardware platforms has resulted in the emergence of advertising as a significant revenue driver for the games industry. Overall game-related ad spending will grow from $370 million in 2006 to more than $2 billion by 2012. In-game advertising expenditure is widely expected to accelerate the fastest. Predictions show more than $800 million – $970 million in spending by 2012.

* Average brand familiarity increased by 64% due to in-game ads on Massive’s network. The study also found
* Average brand rating increased by 37%,
* Average purchase consideration increased by 41%,
* Average ad recall increased by 41% and
* Average ad rating increased by 69%.

This medium represents an opportunity for advertisers, however it is somewhat fragmented and can be difficult to navigate. Advertising opportunities may vary from platform to platform, and certainly demographics will vary based on platform and game type. A basic understanding of the game platforms and available advertising formats is an important piece of mastering the Interactive landscape.

Generally, advertising opportunities are either in-game or around-game and can be further described as “environment” or “immersive.” Around-Game ads are displayed in conjunction with, or alongside a game while in-game ads are elements of the game itself whether by display or interactive in nature. Typically, web-based games are played within a “traditional” website environment where ad units can be displayed around the game window during game play. On the other hand PC-based downloadable games are typically housed in an HTML environment and are played in full-screen mode. Advertising can be displayed both before and after gameplay, in the launch and exit windows, with digital video ads running while the game is loading. This format also allows for game patching, digital rights management, and commerce.

The Interactive Advertising Bureau, in association with the Games Committee, has introduced the first in a series of papers that outlines a detailed overview of the various game platforms, primarily “console” and “personal computer (PC) online.” Subsequent reports are expected to address audience demographics, behavior, and best practices.

Video Games have emerged as a main-stream entertainment medium that generates worldwide revenues of about $25 billion in hardware and software sales. Surpassing box office revenues, movie rentals, book and music sales, Video Game revenues reached $12 billion in the US in 2006.

DFC Intelligence estimates that:

• Over 40% of households have a video game console system
• Over 120 million people play video or computer games in the U.S.
• Personal Computer Gamers are expected to reach 80 million in 2007 and up to 99 million in 2012
• Console/Online gamers is expected to reach 6.9 million in 2007 and up to 18.5 million by 2012

The integration of online games across all hardware platforms has resulted in the emergence of advertising as a significant revenue driver for the games industry. Analyst predictions vary, but they all point to big numbers. Parks Associates believes overall game-related ad spending will grow from $370 million in 2006 to more than $2 billion by 2012.

In-game advertising expenditure is widely expected to accelerate the fastest. Parks Associates predicts it will amount to more than $800 million in spending by 2012, a conservative figure compared to Yankee Group’s prediction that global in-game advertising spending will reach $971 million by 20113.

Projections for increased revenues could be well justified based on the results from a recently released study conducted by Nielsen Entertainment on behalf of Microsoft-owned in-game advertising specialist Massive Inc.. The research showed that:

• Average brand familiarity increased by 64% due to in-game ads on Massive’s network. The study also found
• Average brand rating increased by 37%,
• Average purchase consideration increased by 41%,
• Average ad recall increased by 41% and
• Average ad rating increased by 69%.

This medium represents an opportunity for advertisers, however it is somewhat fragmented and can be difficult to navigate, says the report. Advertising opportunities may vary from platform to platform, and certainly demographics will vary based on platform and game type. A basic understanding of the game platforms and available advertising formats is an important piece of mastering the Interactive landscape.

Generally, advertising opportunities are either in-game or around-game and can be further described as “environment” or “immersive.” Around-Game ads are displayed in conjunction with, or alongside a game while in-game ads are elements of the game itself whether by display or interactive in nature.

Typically, web-based games are played within a “traditional” website environment where ad units can be displayed around the game window during game play. On the other hand PC-based downloadable games are typically housed in an HTML environment and are played in full-screen mode.

Advertising can be displayed both before and after gameplay, in the launch and exit windows, with digital video ads running while the game is loading. This format also allows for game patching, digital rights management, and commerce.

From KenRadio.com

A new study into the way cell phones make teens ‘feel’ and the benefits they get from cell phone ownership, finds that 77% of teens cited “convenience of being able to communicate from anywhere,” while 75% said “security of being able to reach family” are major cell phone benefits benefits. Much lower on the list was friends’ admiration of their cell phone features at 41%. The study show the lives of the 13 -17 year old set, when asked about how ownership of a cell phone makes them feel, “connected” is the dominant response, according to eCRUSH.

The study found that of all the gadgets and devices available today, the cell phone is a teen favorite. 51% of teens said they “absolutely could not live without” their cell phones. When teens were asked about the mobile phone features they have and use, text messaging was overwhelmingly cited as the feature they use most, followed by the ability to customize wall paper, take digital pictures, and play games which come with the phone.

And, cell phones are rapidly becoming the “new” medium for viewing music videos, says the report. 41% of teens surveyed have video downloading capability on their cell phones and approximately half of those teens are actually downloading and viewing videos. Among these teens, music videos are the most watched type, followed by user generated content. As media companies move into the mobile space, it’s critically important to understand how the teen demographic uses mobile technology for entertainment and the extent to which this usage affects their other media and leisure time behaviors.

Busta Rhymes posted a YouTube video giving his thoughts on the impact of digital music and the internet on his career, and he’s not best pleased. “We was able to go into these labels and secure $4 million album checks. That’’s not happening no more. The computer caused that.” He also gives his views on YouTube and ringtones during the vid.