The problem is that its very unobtrusiveness is its drawback. The product has to have inherent brand fame to get viewer recognition, yet that fame may also render the placement anonymous in the viewing experience.
But what if the brand was integral to the entertainment? Product placement restrictions prevent that in TV, but there are no such barriers in video games.
Dynamic in-game advertising has been the kick-start to the medium's growth, up 41.6% last year over 2005. By serving ads through the web directly into the game, ads and placements can now be updated, replaced with other brands, and, importantly, can be positioned into established games. Previously, advertisers had to build their ad into a game during its development, taking pot luck on its success.
Furthermore, ads can now be measured by viewers' engagement with them, enabling their sale on a cost-per-thousand basis. Comparing to other media, in-game advertising is similar to the role played by outdoor, in reinforcing a message, rather than launching a brand.
However, its USP is the audience, comprising those elusive, light-media consuming, young males who are engaging actively with the entertainment, rather than passively.
The Holy Grail, of course, is to integrate that activity into the brand itself, and that is where gaming scores over all other media. Red Bull's placement into games as an energy stimulator to a player's character is the oft-quoted example. Cars and sports shoe brands have similar opportunities.
TV is the medium most threatened by gaming - three-quarters of gamers say they watch less TV as a result of time spent gaming - yet, TV also has, potentially, the most to gain.
As the computer morphs into the TV set and gaming moves out of the bedroom into the living room, opportunities for TV to tap into gaming abound. How much fun could boy racers have, pitting themselves against Lewis Hamilton, by joining in a live, televised Formula 1 race via a game enhancement?
And what new revenue sources could be derived for TV gaming without the hindrance of product placement curbs?
- Colin Grimshaw is the deputy editor of Media Week.