The blurred line between authenticity and advertising in video games
Advertising has featured in video games for years. Sometimes it is subtle and effective, seamlessly blending into the game, but often times it is clumsy and cynical. Callum Walden, from Sayers Brand Momentum, explores how you can successfully market within the world of gaming.
I was recently watching a review for Microsoft’s new premier motorsport simulation game Forza Motorsport when a seemingly innocuous comment caught my attention. While praising the general realism and physics of the game, the reviewer wished there were more ‘real world sponsors’ available to feature on driver racing suits and on vehicles.
This comment piqued my interest. How often do we experience a ‘normal’ (Read: Not in the advertising bubble) person actually request to be advertised at more?
Of course, advertising has been deeply embedded in gaming for years, most spectacularly for video game Fortnite, which has countless examples of in-game product integration, most notably with US fast-food chain Wendy’s for which its Food Fight game mode was recognised for its excellence at Cannes in 2019.
But we’re seeing a rise in e-sponsorships where brands can seamlessly advertise through sideline billboards and on jerseys in games like NBA 2K and EA Sports FC. It’s a brilliant trojan horse for advertisers – another way to reach further highly engaged eyeballs under the guise of realism and authenticity, with the inclusion of advertisers aiming to enhance the gaming experience. This trend, however, is yet to successfully evolve into video gaming at scale. There are many reasons why advertising and video gaming are yet to achieve a deeply symbiotic relationship, but I think this day is fast approaching.
The History of Advertising and Product Placement in Video Games
Since the advent of video games in the 1980s, brands have tried to attach themselves to games to sell more products. One of the earliest examples of this is 1983’s arcade game Tapper, a collaboration between Midway Games and Anheuser-Busch, where the player assumes the role of a busy bartender, diligently pouring Budweiser to increasingly impatient customers. This trend of overt ‘advergames’ continued through the 80s and 90s, with titles such as Chase The Chuck Wagon (created by Purina), Donaldland (created by McDonalds) and Chester Cheetah: Too Cool to Fool (sponsored by Cheetos). These games were widely considered to be of a low-quality, aimed at exploiting the brand’s recognition rather than emphasising entertainment value. They also presented a significant ethical question around the appropriateness of advertising to children.
As 3D graphics and more complex game engines became the norm through the mid 1990s and early 2000s, more nuanced product placement in video games followed suit. In addition to the endemic advertising within sporting games, building simulation games such as SimCity and RollerCoaster Tycoon featured collaborations with brands like McDonalds, Coca-Cola and KFC.
The proliferation of broadband internet in the mid-2000s saw organisations such as IGA Worldwide and Double Fusion attempt to embed dynamic advertising into games, with games like Tony Hawk American Wasteland and Splinter Cell Chaos Theory, which dynamically placed relevant ads to your region and time of day on city billboards and bus ads. This practice was ultimately deemed an unprofitable failure, with both organisations folding by 2012. How ahead of their time to be embedding programmatic communications in the online world…
In more modern games, products were more subtly (although, not always) inserted into games to make worlds more immersive. Some examples include the Yakuza series incorporating Suntory spirits as purchasable products from the many bars that can be visited while exploring the Tokyo nightscape. Or the newest Need For Speed game, which lets players outfit their characters in luxury streetwear brands like Acne Studios, Palace and Alpha Industries.
This period also featured absurd product placements such as the Final Fantasy XV mission centred around finding Cup Noodles to eat (this needs to be seen to be believed).
To date, with few exceptions, product placement has largely taken players out of the game experience, rather than feeling authentically integrated. It could be argued that the time is ripe for this to change.
The State of Video Gaming Today
While stereotypically considered an entertainment medium for kids and teenage boys, this is no longer the case for video games. The Entertainment Software Association reports that average age of video gamers in the USA in 2023 is 34, with 62% of all adults report playing games. This study also found that 46% of gamers were female. This aligns with PwC’s 2023 Entertainment and Media Outlook Report, which has predicted gaming to be a major area for entertainment growth, with the global market expected to grow from US$227 billion in 2023 to US$312 billion in 2027.
Games are also becoming increasingly entrenched in the popular cultural zeitgeist for both children and adults, with the recent releases of blockbuster movies like Sonic the Hedgehog, Super Mario Brothers and Uncharted, and The Last of Us being HBO’s second most successful TV Series debut since 2010 (behind House of the Dragon) with an average 32 million views per episode in the USA alone. Technological advancements are enabling video game developers to build increasingly realistic and nuanced worlds for players to explore. This is surface level compared to the potential opportunities of alternative- and virtual-reality peripherals and the metaverse, which is considered immature in terms of future possibilities.
We’re also seeing a continued rise of in-game microtransactions where additional / optional content and features can be purchased for a real-world fee. This is becoming a cornerstone of modern gaming, much to the distaste of many gamers. Perhaps a sophisticated market for in-game advertising or e-sponsorship could provide the alternative revenue stream that publishers demand, reducing pressure to exploit players directly for their cash.
So, what does this mean for advertisers?
With developers looking to establish more realistic, immersive experiences, one could argue that effective product / brand integration can only contribute to the experience. In an advertising environment where consumers are increasingly rejecting traditional advertising in favour of branded experiences, we are on the precipice of an opportunity to engage potential customers in a distinctive, authentic and memorable way. The key for brands to get this right is through immersion. That is to say, it isn’t enough for your character exploring post-cataclysmic USA to have a feverish addiction to pounding Monster Energy to regain stamina. For product placement to be effective, it is critical that these core principles are clearly adhered to:
Authenticity and immersion is key – Brands and products featured should feel authentic to the time period, location and tone of the game. Failing to do so removes the player’s suspension of disbelief and breaks immersion. It should always enhance the narrative or setting without feeling shoehorned in or disruptive.
Ensure a balance of realism and visibility – People hate being bombarded with overt advertising in all contexts – the same is true for games. Brand and products should avoid drawing excessive attention to themselves or detract from the primary content or gaming experience. Advertisers shouldn’t see games as another real-estate grab. Just like in the real world, context is everything and saturation can lead to a negative sentiment from viewers.
Maintain respect for the player’s sense of choice and control – Players should not be forced to engage with the brand or product. A player’s identity is projected onto the in-game character as an extension of themselves. People value choice and should not have them thrust upon them.
Do not throw ethical practices out the window – Appearance of ads in video games does not exempt advertisers from adhering to ethical standards. Potentially deceptive advertising, ads targeting children and vulnerable audiences, and a sense of sensitivity and respect for cultural and social context should always be kept in consideration.
It cannot be denied that embedding effective advertising into video gaming presents a massive opportunity for brands, but also a significant challenge to effectively integrate in an authentic and immersive way.
I, however, remain confident that if done correctly, a new frontier for advertisers from a vast spectrum for categories. With a focus on seamless product placement and e-sponsorship that is authentic to the spirit of the medium, a great number of opportunities are ready to be unlocked.
Great article!
Almost 12 years ago I wrote my university thesis on in-game advertising effectiveness and message/branding recall in youth. In the study I used Skate, F1 games and a few others as examples. It’s fantastic to see this subject coming up as I believe it’s an under discussed area. This world is worryingly unregulated and potentially a roundabout way to reach youth with ads, that you’d usually not be able to do; although the links to realism are also interesting.