WildTangent sells in-game ads for its in-house developed games as well as for third-party games developers, including Sony Pictures Digital and 'Runescape' developer Jagex.
It has also developed games on behalf of advertisers. Last year, Jeep and Oakley products were showcased in its PC game 'Snowboard Super Jam'.
The games are distributed via internet portals and ISP and through WildTangent software pre-installed on 64% of consumer PCs in North America.
Mark Read, WPP strategy director, said the move would allow the group's clients to tap into WildTangent's in-game advertising network.
"We want to get closer to this interesting new medium," he said. "Consumers are spending increasing amounts of time online, particularly the 18-34 demographic."
WPP has bought a 3.4% stake in the firm for an undisclosed sum. It follows Microsoft's $300m (£159m) acquisition of in-game ad company Massive in May.
WildTangent was founded in 1998 and is based in Redmond, Washington. It employs 70 people and its revenues for the year ended June 30 2006 were $14.3m.
It is WPP's second digital acquisition this week. Yesterday, it agreed to buy 25% of US internet PR and marketing firm Visible Technologies, with the option to acquire another 26%. Visible Technologies helps brands manage their reputation on blogs and social networking sites.
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