Google Jumps into Video Game Advertising for $23 Million
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Written By Kate Zimmermann | February 16, 2007 | Share This
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Rumors that Google was “in talks” to buy Adscape Media, a video game ad placement company, were finally confirmed this morning when Google agreed to acquire Adscape for $23 Million. Back in January, I wrote,
“This is the first time Google has expressed interest in in-game advertising, and further example of how Google is re-applying their AdWords methodology to new ad formats.”
With today’s announcement, however, Red Herring reports, “Sources familiar with the in-game ad business said an Adscape acquisition gives Google little beyond a few potentially interesting patents. While market conditions could change rapidly, don’t expect the Internet giant to announce big in-game ad deals with publishers like Electronic Arts anytime soon.” Though Google may not be jumping into in-game advertising anytime soon, it certainly wouldn’t be a surprise after Google’s tests in print, radio, mobile and video advertising.
Google wasn’t the first search company to express interest video game ads - Last May, Microsoft bought in-game advertising company Massive for a rumored $200 - 400 Million. As Microsoft wrote in their press release, “Massive and Microsoft can help lead with our shared vision of delivering more targeted, measurable and effective opportunities for advertisers to reach today’s youth audience in a largely untapped market.” Though the Adscape deal is much smaller than Massive (no pun intended), Microsoft must not be thrilled to see Google ‘tapping’ into their video game ad market.
Discussion
- Google Buys Adscape, In-Game Ad Startup (Google OS)
- Google’s Got Game. Advertising, that is (Web Pro News)
- Google Buys In Game Ad Company (Screenwerk)
Topics: Advertising: Distribution, Google, Investment, M&A |