Commercial space: in-game advertising occupies more than a virtual existence.(Gaming)

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The advertising world is in crisis. While it may be difficult to work up genuine feelings of concern for those wonderful people who brought us disaffected cavemen, snuggly toilet paper, and cartoon-inspired digestive tracts, the fact is the miracle of TiVo, not to mention YouTube, iTunes, and MySpace, is finishing the work begun by VCRs: We can watch what we want, when we want. As a result, we no longer have to sit through commercials if we don't want to. And, to the horror of advertisers and ad agencies, we don't want to.

In 2004, the Entertainment Software Association (ESA) stated that 52 percent of video and computer game players said they were watching less TV and spending more time playing electronic games. The trend has continued, and even more devastating for the $400 billion advertising industry is that those opting for less-conventional entertainment are believed to be among the most influential consumers.

It's not that people are completely abandoning television; they're simply doing more--they're playing games, they're IM'ing, they're creating digital photographs, they're surfing the Web. They are very interactive. And young, technology-savvy people are believed to dictate major electronics purchases in tile household. Sure, they determine what computer to buy, but they also have a lot of influence over other devices such as televisions and mobile phones.

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The society as a whole is becoming more Web-oriented, as people turn to the Internet for their news. Also, there is growing interest in downloading movies and watching TV and movies online. In short, there is a big shift of eyeballs going on.

In-Game Advertising