Google to enter in-game advertising market with acquisition

LONDON - Google could be set to enter the in-game advertising market, with the rumoured acquisition of San Francisco-based Adscape Media.

The search giant is in final negotiations to buy the company, which serves advertising into online games, according to US reports. Google refused to comment.

In-game advertising is a rapidly growing market, particularly for massive multiplayer online games such as Second Life. Adscape is a competitor to the likes of IGA Worldwide and Microsoft-owned Massive Inc. Google has been expanding into media recently, with acquisitions such as the purchase of video website YouTube in a share deal worth $1.65bn (£880m) in October 2006.

Ed Bartlett, European vice president for IGA Worldwide, told Media Week existing players would have an advantage over Google in the market because of the contracts they already have in place with games publishers.

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