In-game advertising

[12][13] Similar to product placement in the film industry, static IGAs cannot be changed after they are programmed directly into the game (unless it's completely online).

[24][25] This approach combines the customization of web banners with the functionality of traditional billboards and posters as most in-game advertisements do not link to a website outside the game.

[27] Dynamic advertisements can be purchased after a game is released to the general public are featured in a developer determined in-game location.

For example, in October 2008, billboard advertisements were purchased in 10 swing states by then-US Democratic presidential candidate Barack Obama in numerous Xbox games.

[30] In freemium games like Farmville, these transactions are typically one-time payments for specific in-game goods (micro-transactions).

[31] Free-to-play games like Age of Conan instead try to induce players to enter into a pay-to-play relationship for premium content.

For example, City of Heroes and Anarchy Online both use dynamic IGA in an urban game setting to mimic real world stimuli.

[34][35] In contrast, fantasy games such as EverQuest II and World of Warcraft may not include IGA when real-world advertisements do not fit contextually.

Blizzard has previously remarked that it would not consider using IGA within World of Warcraft; conversely, SOE experimented briefly with an in-game command-line function allowing players to order food delivery from Pizza Hut in EverQuest II.

[39][40][41] IGA is seen as an important means of gaining access to a generation of young males who use gaming as their relaxation activity instead of watching television.

[39] However, companies have found that gamers do not want distracting advertisements when they have already paid the retail price and/or a monthly subscription fee.

[41] A small, 100 participant, 2010 study suggested that gamers may be more likely to favorably respond to advertisements and products which are congruent with the game environment.

[56] In-game advertising can also lead to negative reviews for a video game, as occurred in 2013 with Maxis' promotion of a heavily branded Nissan Leaf charging station as downloadable content in SimCity.

Yang et al.[59] found some types of recognition were low among college students, although players did retain word fragments in sports games.

Grace and Coyle[60] found that 35% of players could recall advertised brands in a controlled study of car racing games.