A long rumored deal has finally been hashed out between Google and in-game advertising technology firm Adscape Media, with Google giving up $23 million for the company.
Google’s Got Game. Advertising, That Is
Adscape hasn’t formally announced the deal, which is being reported in Red Herring. The deal is on a much lower scale than the one that brought in-game ad firm Massive to Microsoft and its Xbox Live platform.
If Google can get Adscape even close to Massive’s level, the $23 million price tag being discussed will look like one of the greatest bargains ever. Microsoft’s Massive deal had been rumored to be in the $200 million to $400 million range.
Microsoft has Xbox Live, the online game network where they could integrate Massive’s technology right away. Massive also had existing deals with game developers like Ubisoft and Konami, giving Microsoft an additional potential outlet for their adCenter and other advertising clients.
For Google, the challenge should be to find partners willing to bring Adscape to their online games. That should not be a big problem, as video games now rival movies in terms of production costs. Another revenue stream above and beyond the retail channel will be welcome in game studios.
The appeal for advertisers goes straight to the demographic nearest and dearest to Madison Avenue’s heart. Those are young men ages 18-24 who can’t be reached with TV or Internet ads. Their online game play replaces time they would have spent in front of the tube or clicking on links.
Nick Gonzalez at TechCrunch makes a nice tie-up observation in his post about the deal: “This is an interesting development considering Google
