Players are used to watching ads in exchange for rewards on mobile and social games. But will they tolerate them on a console?
By Sahil Patel Close Sahil Patel July 26, 2020 9:00 am ET Marketers are putting TV ads in videogames played on consoles, an experiment in trying to reach younger audiences who are watching ever less traditional TV.
Traditional TV is Experian’s biggest marketing channel by spending, said Steve Hartmann, vice president of integrated marketing at Experian Consumer Services. But especially with the loss of live sports for much of the coronavirus pandemic, it has become harder to reach a large swath of younger viewers on the biggest screen in the house, he said.
The tests are being run by Simulmedia Inc., an ad tech firm whose software lets marketers target TV ads to audiences more narrowly than TV’s usual broad age and gender demographics. Unilever PLC’s Dollar Shave Club is among the marketers running the test ads. Simulmedia is in talks with other console game makers about running similar tests, Mr. Morgan said, adding that game owners will get most of the ad revenue.
When ads have appeared in console games, they have more often shown up on virtual billboards or other signs within the games’ worlds. The National Basketball Association’s console games, for example, feature signs and other branding from league sponsors in their virtual arenas, said Eric Fischer, founder of consulting firm HJA Strategic Marketing and a former NBA executive.
Executives involved in the tests acknowledged the risk of alienating gamers, but added that they have shown a willingness to accept ads in exchange for rewards. It is important that marketers run ads that speak to the audience they are trying to reach.
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