In-game ad market to reach 971 million by 2011

The global in-game advertising market, which generated 77.7 million globally in 2006, continues to develop at an exponential rate. By 2011, worldwide in-game advertising expenditures (fixed product placement/static ads and dynamic ads) will grow to 971.3 million, according to a Yankee Group Report, "Advertising and Games: 2007 In-Game Advertising Forecast."

The report says new media is eclipsing traditional advertising media. Spending on traditional advertising media (television, newspapers, radio and magazines) grew 3.6 billion last year while spending on internet advertising grew 4.3 billion. As a result of the significant shift in ad spend in new media, in-game advertising budgets and networks serving these ads are also growing. In addition, connected game devices are becoming the foundation on which providers build dynamic in-game insertion. As well, dynamically placed 2D ads will cannibalize static in-game ads, but fixed product placements will continue to grow through 2011. The number of games with in-game ads will double annually through 2008. In the near term, PC games will drive the market for dynamically served ads.