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NewsGoogle to Work its Advertising Mojo in Videogames Soon

In-game advertising is the need of the hour as game production costs continue to mount. Additionally, it presents a huge opportunity to companies like Google with valuable ad brokering experience. The contextual ads giant is keen on leaving its mark in the fledgling in-game advertising market, too. It has been polishing its “AdSense for Games” service – first announced in 2007 – for quite some time now.

It has developed a new technology specifically for in-game advertising. However, if the initial information about the new technology is to be believed, Google’s in-game ads might not be all that subtle but a tad intrusive: imagine a game’s central character abruptly interrupting the game with something like “and now a word from our sponsor” or “the game continues after the following message.” Google has its task cutout as Double Fusion, IGA Worldwide, Microsoft’s Massive, MochiMedia and NeoEdge Networks are already in the fray.

Colossi like Google almost always telegraph their foray into a new market with an acquisition. And Google honored the tradition by acquiring in-game advertising company Adscape for $23 million in February, 2007 and announced its ambitions.

Do you think that video ads are intrusive and subtly placed ads should be persisted with, or am i the only one making all the fuss? 

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NewsCiti Analyst: Google to Tip Display-Ads-Revenue Scales with Youtube Video Ads

 

Display ads on Youtube

 

Google recently shut the door on Microsoft with a major online ads deal with Yahoo. Having warded off any possible threats to its throne in the immediate future, Google can look to consolidate its gains. And consolidate it will. Mark Mahney, financial analyst at Citibank Investment Research, expects Google to earn $1 billion from display ads alone in 2009.

Currently Yahoo is the leading player in the global online display ads industry – not to be confused with search ads - worth $22 billion annually. Google will be able to trim Yahoo’s lead in 2009 by auctioning display ads space across its bouquet of prime internet properties that includes Youtube, Google Videos, Images, Maps and Finance, and DoubleClick.

The internet juggernaut has finally solved its Youtube conundrum and will start feeding video ads to the website’s legion of video buffs. Mahney anticipates $500 million in Youtube display ads sales alone in 2009.

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