Professional politicians play strategic video games

In-game advertising. Computer and video games as advertising medium and their intermedia positioning

Table of Contents

1 INTRODUCTION

2 INTRODUCTION
2.1. Problem and initial situation
2.2. Goal setting
2.3. Research questions and hypotheses
2.4. Thematic delimitations
2.5. Structure of the work

3. IN-GAME ADVERTISING
3.1. Definition of terms
3.1.1. Definition of the term game
3.1.2. Definition computer game
3.1.3. Definition of in-game advertising
3.2. Developments and milestones - historical development paths
3.2.1. Developments in the Console Market - Market Participants
3.3. Forms of in-game advertising
3.3.1. Static IGA (SIGA)
3.3.2. Dynamic iGa (DIGA)
3.3.3. Interactive Product Placement (IPP)
3.3.4. AdGames / Advergames
3.3.5. Summary: Forms of in-game advertising
3.4. Legal Aspects
3.4.1. surreptitious advertising
3.4.2. Protection of minors
3.4.3. Age ratings
3.4.4. privacy
3.4.5. In-game advertising as a material defect
3.4.6. Debate killer games
3.5. In-game advertising market
3.6. Target group analysis
3.6.1. Non-player
3.6.2. Demographic data
3.6.3. Sociographic Insights
3.6.4. Media usage
3.6.5. Consumer behavior and attitudes
3.7. Advertising effect
3.7.1. Advertising effectiveness model in-game advertising

4. IN-GAME ADVERTISING IN MARKETING THEORY ..
4.1. 'Above-the-line' and 'below-the-line'
4.2. Incorporation of IGA
4.3. Benefits at IGA
4.4. Shortcomings at IGA

5. IN-GAME ADVERTISING IN THE MEDIA MIX
5.1. Excursus: Media landscape in Austria
5.1.1. Media usage and advertising market
5.2. Positioning of in-game advertising
5.3. Excursus: online advertising
5.3.1. Tools
5.4. IGA and classic online advertising in context
5.4.1. Similarities, advantages & disadvantages
5.4.2. Markets
5.4.3. costs

6. IN-GAME ADVERTISING AND BRAND MANAGEMENT ..
6.1. What is a brand?
6.2. Identity-oriented, virtual brand management
6.2.1. Risk management
6.2.2. Strategic brand management
6.2.3. Operational brand management
6.2.4. Brand controlling
6.3. The ten commandments according to Gaca
6.4. Brand maintenance in virtuality
6.5. Media planning for in-game advertising
6.5.1. Media research
6.5.2. Advertising costs
6.5.3. Realization of IGA
6.5.4. Examples and, success stories

7. SCIENTIFIC METHOD
7.1. Methodology of empiricism
7.2. Summary of the expert interviews
7.3. Answering the research questions
7.4. Review of the hypotheses

8. CONCLUSIO
8.1. Potential for improvement
8.2. Development scenarios
8.2.1. Best case
8.2.2. Worst case
8.2.3. Real case
8.3. Critical appraisal

9. LIST OF ABBREVIATIONS

10. LIST OF FIGURES

11. LIST OF TABLES

12. REFERENCES

13. APPENDIX
13.1. Appendix 1 - Comparison of household expenditure DE vs. AT
13.2. Appendix 2 - Comparison of media usage time DE vs. AT
13.3. Appendix 3 - Consumption Settings in Computer Gamers
13.4. Appendix 4 - Information on the legal texts used
13.5. Appendix 4 - Expert Interviews
13.5.1. Expert interview with Eberhard Durrschmid / Greentube AG
13.5.2. Expert interview with Jurgen Strasser / Playtime
13.5.3. Expert interview with Dr. Niki Laber / OVuS
13.5.4. Expert interview with Andreas Wochenalt / Demner, Merlicek &
Miner
13.5.5. Expert interview with Philip Newald / tip 3
13.5.6. Expert interview with Alexander Pfeiffer / Pfeiffermedien
13.5.7. Expert interview with Hofer Alfred / Greentube AG
13.5.8. Expert interview with Herbert Rosenstingl / BUPP
13.5.9. Expert interview with a publishing group (anonymous)
13.5.10. Expert interview with Matthias Schneider / Sports Week &
Sports magazine
13.5.11. Expert interview with an internet portal for sports content (anonymous)

13.5.12. Expert interview with Hannes Linsbauer / consol.Media

“Games are evolving to entertain, educate, and engage us individually. They will allow us to express ourselves, meet others, and create things that we can only dimly imagine. "

Will Wright

Management summary

The term in-game advertising (IGA for short) describes advertising that is transmitted via the medium of computer / video games. The integration of advertising in such games takes various forms - static, dynamic and as interactive product placement.

Static IGA is the permanent placement of advertisements in a computer game. This achieves a high degree of integration with the game, but this requires a long lead time and a relatively high advertising budget.

Dynamic IGA is the targeted display of advertising, which is possible for a certain period of time, on placeholders specified for this in the game. Typically - as in the real world - this involves advertising banners, billboards, etc. Dynamic advertising in computer and video games is generally seen as a source of hope for the in-game advertising market.

With interactive product placement, brands and products are included in the storyline of a computer / video game. There are opportunities in which the player can interactively gain positive experience with a product placement in a game.

The target group of computer and video gamers is disproportionately younger (average age approx. 35 years) and more male (approx. 60% male share).

Like other media, computer / video games are subject to legal regulations such as the protection of minors. By using IGA, the legal framework of data protection regulations as well as that of subliminal surreptitious advertising must also be observed.

IGA can be viewed as a below-the-line promotional measure. It can best be assigned to the area of ​​product placements - on the basis of the underlying medium of the computer / video game - whereby there are also analogies to sponsoring.

In-game advertising only plays a very subordinate role in the overall media mix. In practice, it is added to online advertising, which in Austria accounts for around 4% of the total advertising market (as of November 2009). In this area of ​​Internet advertising, however, IGA is not of great importance (approx. 1% of online advertising).

The advantages of IGA are the increased attention through active media use, the positive perception of brands due to the strong, emotional connection to the medium and the recipient's feeling that well-integrated advertising increases the authenticity of games, and therefore not burdensome works.

Increasing brand awareness is one of the main tasks of in-game advertising. The main determinants for increasing brand awareness are target group compatibility, the interaction between the virtual and classic brand presence and the perceived benefit of the virtual brand presence. In the course of increasing brand awareness, there is an identity-oriented, virtual brand management of notes that includes all strategic, operational and controlling processes.

The results of the study are the underdimensioning of IGA compared to online advertising in terms of importance in the media mix, the high advertising relevance of the target group, especially in sectors such as music / internet / telecommunications / automotive and the obstacles that IGA to has overcome in order to celebrate success as an advertising medium. In addition, it was found that the medium-term development of IGA is partly dependent on developments in the area of ​​online advertising.

There is potential for improvement in the area of ​​advertising market development, the design of advertising in computer / video games, as well as in the communication and response options for the recipient.

The market for in-game advertising and the computer games market will grow in Austria, but a significant breakthrough in its relative importance in the advertising market must be viewed critically.

1 INTRODUCTION

This diploma thesis was written as part of the diploma course in corporate management at the Vienna University of Applied Sciences, courses of the Vienna Chamber of Commerce.

All gender role designations apply in the sense of equal treatment in principle to both genders. For reasons of easier readability, however, a gender-neutral differentiation, e.g. "computer players", is dispensed with.

2 INTRODUCTION

Advertising attracts attention and is used to influence people in order to derive commercial benefit from them. Since time immemorial, one thinks of medieval barkers, the successful promotion of one's own products seems to be a guarantee for increased sales. Modern advertising, as we currently perceive it, took its course with the industrial revolution and the beginning of mass production. Advertising developed in many ways. Socio-cultural changes over many years, which changed the way advertising messages are presented, as well as industrial progress and the resulting paradigm shift from seller to buyer markets influence advertising in its form.

Above all, however, technological advances have repeatedly based advertising on new media as a platform and thus new possibilities. Over the years, print advertising, radio advertising, television advertising and, in the meantime, advertising on the Internet have established themselves as communication options for entrepreneurs. But nothing is as constant as change, advertising is becoming more and more creative and unusual in order to be able to stand out from the masses of classic advertising media.

Computer games are now a widespread mass medium. “The total Austrian market for interactive entertainment grew by 24 percent in 2008 to around 278 million euros (2007: 224 million euros). (see www.ovus.at 2009).

The Austrian daily derstandard wrote the following on November 19, 2009:

"It's official: The war game 'Call of Duty: Modern Warfare 2' (MW2) has had the most successful market start in the history of the entertainment industry. [...] In comparison, this means that MW2 has all previous quick starters such as' Harry Potter and the Deathly Hallows' (book), 'The Dark Knight' (film) and also Grand Theft Auto IV (video game). [...] However, it would not be the first time that video games have taught Hollywood fear. Already at the start of Grand Theft Auto IV it was said that film studios had to postpone major theatrical releases in order not to have to accept a drop in sales. " (Zsolt 2009)

This clearly disqualifies computer games as a niche medium, even for the Austrian computer games market, which is lagging behind compared to other countries. Computer games, a medium that is about to conquer the advertising market commercially.

2.1. Problem and initial situation

In-game advertising (in-game: in the game ’; advertising:’ advertising ’) refers to the integration of advertising messages in computer games.

International studies, such as that of the Yankee Group, describe computer games as an important future advertising medium with rapid growth rates. (cf. Thomas / Stammermann 2007, p.15ff) What all studies have in common, however, is that in-game advertising is currently the fastest growing form of advertising, because media use by the end consumer is already given and 'only' needs to be used for advertising be developed and capitalized.

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Figure 1 In-Game Advertising Forecast of the Yankee Group (2007)

Even the incumbent US President Barack Obama first used the medium of computer games for advertising purposes for his presidential campaign. In this way, he has successfully enriched his marketing mix with another facet in a media-effective manner.

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Figure 2 Barack Obama advertises in the game ’Burnout Paradise’ Source: own screenshot

Converted to consumer-oriented advertising, the possibility of in-game advertising is a sensible option to expand your marketing portfolio, especially for established and well-known brands and branded products.

In Austria, 75% of households have a computer (PC / laptop), which is an increase of 26 percentage points compared to 2002. (cf. www.statistik.at 2009) In total, almost 5 million computer games were sold in Austria in 2008, which corresponds to an increase of 16 percent. (see www.ovus.at 2009)

One reason for the optimistic growth forecast for in-game advertising is that the computer game is still in its early stages in terms of its commercial use as an advertising medium. Accordingly, there is little research work in this area.

2.2. Goal setting

The aim of this thesis is to give a comprehensive overview of the form of in-game advertising. This should be examined as multifaceted as it has been missed in previous studies and specialist books:

- An exact derivation of the terminology as well as the historical development should be shown. Legal aspects on the Austrian market are to be analyzed for in-game advertising. The investigation of the target group of computer gamers on the basis of secondary data completes the extensive treatment of this topic.
- A marketing theoretical consideration of in-game advertising should help to manifest the form of advertising in marketing theory in order to create a basis for further marketing specialist bookers.
- The practice-oriented view should be a guide to brand management and technical implementation. On the basis of this work, a company interested in in-game advertising should be able to cope more easily with this new advertising medium.
- In addition, the new advertising medium of computer games is to be compared in a simple context with other media, especially with Internet advertising.
- Answering the research questions and checking the hypotheses should be based on the knowledge acquired and empirically collected expert opinions.
- Furthermore, as a result of the work, a basis for suggestions for improvement in the area of ​​in-game advertising should be created.
- The aim of the work is therefore also to find out to what extent the still rather virgin Austrian market with regard to in-game advertising has already established itself or which development scenarios exist.

2.3. Research questions and hypotheses

1) How can in-game advertising meaningfully complement a balanced media mix for promoting a brand?

H1.1) In-game advertising is subject to cross-media comparison with online advertising in terms of features such as price / performance ratio and importance in the media mix.

H1.2) Computer and video games are suitable - above all due to their unique media-specific advantages - as an advertising medium, in particular to increase brand awareness.

H1.3) Recipients of in-game advertising differ from the general population in features such as consumer behavior, advertising attitudes and more intensive media use.

2) To what extent will in-game advertising gain relevance as a relevant form of advertising in the field of online advertising in Austria over the next 5 years?

H2.1) The future development of in-game advertising depends on the development of online advertising.

H2.2) There are comprehensible obstacles with regard to the use of in-game advertising that are restricting the development of the in-game advertising market.

2.4. Thematic delimitations

In-game advertising describes advertising in games (computer and video games) (for a precise definition, see Chapter 3.1.3). What is considered a game in the course of this work can be seen in Chapter 3.1.2. All other interpretations of this term are not considered in this work. Computers and consoles (stationary and mobile) are listed as essential platforms. Games on other electronic media carriers (such as mobile games on cell phones, arcade machines, etc.) will be excluded from the term ’game’ for the remainder of this work and will not be considered.

In the course of this work, static in-game advertising (Chapter 3.3.1), dynamic in-game advertising (Chapter 3.3.2) and interactive product placement (Chapter 3.3.3) are considered as in-game advertising. According to the author, AdGames (Chapter 3.3.4) cannot be assigned directly to in-game advertising, as they are independent advertising games. In this thesis, the term in-game advertising deals with advertising that is integrated into existing computer and video games from third-party advertising companies.

In contrast to some literature, the concept of around game advertising is also clearly separated from the concept of in-game advertising. Around-Game Advertising describes all activities in the context of brand management for video and computer games in real life. In addition, there are promotions, sponsoring, bonus programs or cooperations, the aim of which is to advertise the game as a brand in order to increase sales. (see Gaca 2008, p.5)

If there are other smaller thematic delimitations, these are clearly presented within the respective chapter.

2.5. Structure of the work

This work will be roughly divided into five parts:

The first part will introduce the concept of in-game advertising extensively and from the ground up and form a basis for further research. In addition, it is important to examine and classify in-game advertising in terms of marketing theory.

In the second part, the position and importance of in-game advertising in the media mix will be presented.

The third part of the thesis is a consideration of brand management in the practical use of in-game advertising.

The fourth part will consolidate hypotheses and knowledge that has already been acquired on the basis of qualitative research through expert discussions.

In the fifth part, the research questions mentioned are finally answered by the combined results and the hypotheses are checked. At the end possible development scenarios as well as improvement potentials for practice are identified and shown. A subsequent critical appraisal of the results is essential.

3. IN-GAME ADVERTISING

The following chapter is intended to provide a comprehensive overview of in-game advertising.Working through the term in-game advertising from the ground up provides a basis for further investigations. For this purpose, a distinction between games and conventional computer programs and the derivation of the medium computer games as well as its definition is necessary.

3.1. Definition of terms

3.1.1. Definition of the term game

A clear, scientific definition of the term ’game’ or ’playing’ cannot be found in the literature. Only with this knowledge does the literature unanimously agree. This may be due to the fact that “playing” itself has an emotional and subjectively perceived character.

"We all play occasionally, and we all know what playing feels like. But when it comes to making theoretical statements about what play is, we fall into silliness. There is a little agreement among us, and much ambiguity ”(Sutton-Smith 1997, p.1)

This quasi non-definition of the term ’game’, which is important for many theoretical and academic contributions, illustrates its elusive peculiarity. In the German-speaking world, Jurgen Fritz is often mentioned in this context. A satisfactory definition of gaming and gaming behavior does not seem possible. The reasons for this may well lie in the indistinguishable use of the word 'game' in the German language, as well as, in principle, in the emotional, intuitive property of 'playing', so that it is difficult to subordinate it to a rational scientific principle of order and also should. (cf. Fritz, Jurgen 2004, p. 13ff)

The term game is defined differently both in popular parlance and in various sciences such as game theory and sub-sciences of psychology.

3.1.1.1. Game term in the context of computer games

The definition of the term game, which is essential for computer games and thus for this work, can best be found in behavioral psychology. From the point of view of the theory of action, the term game is thus made up of three characteristic, mutually definable dimensions. (see Oehler 2009 p.7)

Figure not included in this excerpt

Figure 3 three elements of the "game"

Fritz sees the basic conditions for the concept of play in the interrelation of the elements playful behavior, play structure and ritual / repetition. (cf. Fritz, Jurgen 2004, p. 36)

This is how the playful behavior is characterized

- Self-determination
the feeling of influencing the action through one's own impulses
- contrast
no routine behavior, one enjoys being different
- Risk, experiment
You experience risk, uncertainty demands tension, as the result is not clear
- Imagination, creativity
The possibility of human variability combined with spontaneity. (see Fritz, Jurgen 2004, p.24)

The framework and rules of the game apply as a game construct, also referred to by Oerter as a "change in relation to reality". The imagined situation as a given reality creates rules within which the game takes place. Disregard of the construct elements leads irrevocably to chaos and contradicts the thought According to Roger Caillois, four main categories can be distinguished. Thus, game constructs are characterized by 1. Agon (competition), 2. Alea (challenge of fate, luck), 3. Mimicry (transformation, role play) and 4 . Ilinx (intoxication, experience, ecstasy, let go) (cf. Fritz, Jurgen 2004 p.39) (cf. Oerter 1999, p9f) (cf. Caillois 1982, p.21ff).

The third playful dimension is ritual and repetition. Mihaly Csikszentmihali, Professor of Business Management at Claremont Graduate University, California, sums it up with his term ’the flow experience’, which has been quoted in many ways. In it he describes the complete merging of action and consciousness, a state of self-forgetfulness. This ’flying’ ensures that the player is involved in the game. (cf. Csiks- zentmihalyi 2008, p.58).

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Figure 4 Model of the flow state

Note on the illustration: The left representation shows Csikszentmihalyi's representation, the right one the expression on computer games. The flow experience is therefore only possible in an area in which the action challenges the player, but not overwhelms them. (see Quandt 2006, p.50)

3.1.2. Definition computer game

On the basis of the definition of the term game, what is now called a computer game must be determined. Computer games can be described as programs on computers (from Latin: computare means to add up) which have the three defined elements of a game - playful behavior, game construction, ritual and repetition.

But a lot can be called a computer today. A cell phone is just like a pocket calculator, or the control element of a copier is a computer. The term can be used broadly. This work is limited to the two platforms that are essential for the computer games industry, in which games are differentiated as ’computer games’ and ’video games’. In the industry, the collective term ’Games’ has established itself for these two groups, especially in the German market. (cf. Thomas / Stammermann 2007, p.12f)

“Screen games are games that the players can influence and the course of which is determined by a computer program. Ever

depending on the type of device on which this game is possible, a distinction is made between different screen game formats. "(Fehr 1997, p.99)

Computer games are games that are programmed for today's common computer and operating systems. This primarily means IBM-PC compatible computers in connection with Microsoft Windows and Apple-Macintosh computers in connection with Mac OS. (see Ehrenheim 2007, p. 7)

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Figure 5 Operating systems market share 2009

Due to the high market share of the Microsoft Windows operating system and the possibility of using Microsoft Windows as the operating system on Apple Macintosh computers due to the same underlying Intel process architecture, new computer games are mostly only published on the basis of the Microsoft Windows operating system . Computer games are distributed through the trade, and recently also as download versions (eg: EA Store). In addition to the Internet, the CD-ROM is still regarded as the medium, but recently the DVD-ROM has also become more and more common. The most striking difference to video games are the primary input devices (here: mouse and keyboard), as well as the fact that end users have different computing performance system requirements. End-user systems differ primarily in the performance of memory, processor and, above all, the graphics card. For game manufacturers, this means a suitable means of finding between quality and scope of the game in terms of system requirements / performance and between quantity in order to guarantee a sufficient number of sales. The games have to go on

must be installed on the computer's hard drive before playing. Because of the different system components, installation complications can already arise here. The advantage of computer games is that the game can be modified by accessing data that has already been installed.

Video games or console games are the second large group in games. In contrast to computers, the necessary hardware is cheaper to buy here. By 2009, three big players had emerged in this market who provided the hardware. These were the traditional Japanese manufacturer and current market leader Nintendo, as well as Sony with its Playstation series and Microsoft with its XBOX. (cf. www.vQchartz.com 2010) The input is mostly made via so-called hand controllers, more recently also via movement gestures. The hardware, also known as the console, primarily serves the purpose of being able to play with it. In newer generations, in addition to entertainment functions (picture / film / sound), further functions (e.g. news, community or weather services, etc.) are integrated through the now consistently available Internet connection of consoles. A standard television is primarily used as the output device for consoles.

Mobile handheld consoles (eg Gameboy, Nintendo DS, Sony PSP) must also be paid for with video and console games. In contrast to conventional consoles for home use, these are characterized by their mobility. With an integrated screen, boxes and battery, they are suitable for ’gaming’ on the go. 2 manufacturers are relevant for the market. On the one hand Nintendo (formerly with the "Game Boy" today with the "Nintendo DS" for "Dual Screen"), on the other hand Sony (with the "PSP" for "Playstation Portable") Generation of portable game consoles even the home consoles. (Cf. www.vQchartz.com 2010)

If you want to fully understand the term "games", you also have to mention mobile and arcade games.

"Mobile Games" refers to games on mobile devices such as cell phones, PDAs, MP3 players, but not handhelds (handhelds are classed as consoles)

are not sold physically, but transferred to the cell phone. Often these games are simple, inexpensive to buy and serve to pass the time for a while. 24% of cell phone users already use their phone as a gaming device. The input is primarily made using the keyboard on the mobile phone. (see Lucka 2008, p. 2ff)

Arcade games are computer games in amusement arcades and on arcade machines. The machine usually consists of a screen, buttons, joystick and a built-in circuit board with the game data. Payment is made per game by inserting coins. In order to offer a special experience, many of these machines also have realistic steering wheels or light guns or other replicas as input devices. (cf. Ehrenheim 2007, p. 9)

Table 1 Categorization of computer games

Figure not included in this excerpt

Computer and video games are increasingly similar, the boundaries are disappearing. Current productions are usually developed for several platforms such as PC, console, handheld at the same time. Also the differentiation through the input devices

lags, because mouse and keyboard can now be retrofitted to game consoles, and there are also alternative input devices for computers such as steering wheel, controller, joystick, etc. Game computers are more affordable today than they were 20 years ago and are a sensible alternative to consoles represent.

Subsequently, the terms ’computer game’ and ’video game’ are used synonymously in this work. If there are relevant differences with regard to in-game advertising, this is shown. Furthermore, the term in this work does not refer to the two categories ’Mobile and Arcade Games’. These were only mentioned for the sake of completeness.

Personal computers (IBM-PC / Apple-MAC) and game consoles are defined as platforms for meaningful advertising in computer games.

3.1.3. Definition of in-game advertising

In-game advertising is the deliberate and systematic integration of advertising measures into a surreal computer game world with which the advertiser's communication and sales goals are pursued. From the company's point of view, this represents real advertising in a virtual world. (Cf. Gaca 2008, p. 4)

In-game advertising therefore pays for communication tools in the marketing mix. The "computer game" advertising medium defined in the previous point pays as a constituent element, although this is more of a technical than content-related differentiation. (Cf. Gaca 2008, p. 4) (cf. Thomas / Stammermann 2007, p. 11f)

3.2. Developments and milestones - historical development paths

“On January 25, 1947, Thomas T. Goldsmith Jr. and Estle Ray Mann registered a patent for a program that simulates a rocket on a so-called tube computer. This program is generally considered to be the first computer game. "(Thomas / Stammermann 2007, p. 46)

The first commercial success of computer games was that developed in 1962 by students at the renowned Massachusetts Institute of Technology (MIT)

Spacewar. “Video and computer games have been economically significant on a larger scale since 1972, when a device called Odyssey from the manufacturer Magnavox, a computer that was connected to one's own television, was introduced on the mass market in the USA and was only intended for play. "(Gaca 2008, p. 6)

Since video games were not affordable for the masses for a long time, the important popular classic games of the first time such as Pong, or Space Invaders, etc. could only be played on arcade machines in amusement arcades. (cf. Thomas / Stammermann 2007, p. 47)

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Figure 6 Arcade machines from the very beginning

"Due to the huge sales of these slot machines, a game console was developed for home use, which was finally affordable by consumers in 1980." (Griesbach 2007, p. 9)

The 80s were shaped by the further spread of the home and personal computer, a new competitor for game consoles. The advantage of PCs was clearly that they were a mixture of a full-fledged computer (word processing, calculation, etc.) and a powerful game console. One aspect that should not be overlooked for the success of this platform was, above all, that games were easy to copy. This success, based on technical superiority, led to a crisis in the console market that finally put an end to the Nintendo console (NES) in 1987 with titles such as Super Mario Bros. in 1986. Nevertheless, the PC games market continued to develop. The supremacy of IBM and the DOS operating system developed by Microsoft allowed earlier computer manufacturers such as Commodore and Atari to slide into bankruptcy. (cf. Griesbach 2007, p. 10) (cf. Thomas / Stammermann 2007, p. 48) The fact that Microsoft Windows has always been a driving force for the computer games market in the PC sector stems from this time.

The most important developments on the console market in the 1990s were the improved 16-bit consoles (Super Nintendo, Sega Mega Drive) and the publication of the first handheld consoles (Nintendo Game Boy, Sega Game Gear). Further developments and consoles of the late 90s (Nintendo 64, Sony Playstation, Sega Dreamcast) brought about the graphic breakthrough of 3D representations compared to previous 2D games. Arcade games became less and less important due to the affordability of PCs and game consoles. Apart from the consoles, computer games were pushed by new technical developments in the PC area. The network capability of computers brought about the first multiplayer modes and online role-playing games, so-called MMORPGs (Massive Multiplayer Online Roleplay Game). Both markets established themselves. (cf. Thomas / Stammermann 2007, p. 49f)

From the 21st century, i.e. from the year 2000, a new generation of consoles was introduced. Sega, said goodbye to the console market, but now entered the stage of the console market with the now 6th generation of Microsoft consoles. The steadily growing market, as well as the new opportunities for game manufacturers through new technical achievements such as networking through the Internet / network, more powerful computing and graphics processors, and new carrier media led to the continued establishment of the market. (cf. Thomas / Stammermann 2007, p. 51f)

Computer games are now becoming more socially acceptable and offer ever deeper and more complex surreal worlds. It is precisely because of this social breakthrough, which can be seen in the increasing sales figures and the increasing technical possibilities, for example through the Internet or detailed graphics, in-game advertising is more present than ever before.

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Figure 7 Developments and milestones in games

Viewed globally, the computer and video game market has developed into a mass market with a broad target group. The advancing development of technical possibilities offers opportunities (networking, advertising) as well as risks (illegal pirated copies). The position of mobile games is not yet clearly defined, although they are enjoying increasing popularity. On the part of game manufacturers, the trend towards oligopoly is currently evident due to high production costs. (cf. Grabowiecki / Halff 2007, p. 25)

3.2.1. Developments in the Console Market - Market Participants

The development of the hardware-based market participants in the console market has been a very protracted one. The market is currently in a phase of consolidation. With regard to in-game advertising, this is a very relevant fact.

Over the course of the various generations of consoles, the number of market participants changed significantly. Companies such as Magnavox, Philips, Sega, General Electric, Mattel, Atari, NEC, SNK, Commodore, Apple, Panasonic, and many more. tried and failed. According to Neubauer (cf. Neubauer 2006, p. 80f), the console market is following a pattern that can be found in many industries.

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(Neubauer 2006, p. 80f)

Figure 8 Identifying features for mature markets

Not all points of the final stage according to Neubauer apply to the console market. The console market is a global market anyway, cartel watchdogs seem to be rare, and there is no question of dwindling demand. However, the point "Radical innovations open up a new tournament" is very true. The console market is reinventing itself through increasingly innovative input methods.

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Figure 9 Market development in the console market

Due to the now high investment barriers and the advanced theoretical maturity phase, it can be assumed that new market participants are not excluded, but are not to be expected in the near future. For strategic reasons, an exit is not conceivable for the current market participants.

For Nintendo, the longest-running player in the market, the main business is in the console market.Microsoft and Sony are interested in establishing new carrier media, but above all their interest lies in making their way into the digital living room of the 21st century through their game consoles.

3.3. Forms of in-game advertising

3.3.1. Static IGA (SIGA)

Static in-game advertising (SIGA for short) is the permanent placement of advertising in a computer game. In surreal worlds, for reasons of authenticity, advertising is placed where it could be found in the real world. This is mostly implemented through billboards, billboards or other advertising surfaces. In order to strengthen the presence of the advertising, there is the possibility of incorporating animations, short video clips or sounds. The recipient perceives the advertisement, but cannot interact with it. Game manufacturers were in the position to have to ask for logos and brands to be included in a game until well into the 21st century. This fact has changed fundamentally with the advancing success of computer games. (cf. Gaca 2008, p. 10) (cf. Thomas / Stammermann 2007, p. 57ff) (cf. Henning 2009, p. 25f)

According to this definition, interactive product placement (Chapter 3.3.3) and AdGames (Chapter 3.3.4) could in part also be viewed as static in-game advertising. Nevertheless, they should find meaning as independent forms of in-game advertising. The reasons for this can be clearly seen in the following chapters and the definition of these forms of advertising.

Static in-game advertising has not yet established itself as a relevant form of advertising. Possible reasons are:

- The virginity of the gaming industry compared to other media (TV, print, radio, online) on both sides. Developers are more concerned with the distribution of their products than with new business concepts in the direction of in-game advertising. At the same time, for many advertisers, the medium of computer games has so far not been tangible.
- Game development can take several years, but static advertisements cannot be changed. The brand integration should only take place a few months before the game's release date in order to be immortalized in the game afterwards. Brand changes in the game are no longer possible retrospectively. (cf. Thomas / Stammermann 2007, p. 59f)
- Lack of standardization in the gaming industry

But it is precisely this virgin state of the IGA industry that can currently still be used for one's own benefit. The manufacturers' non-standardized pricing procedures mean that conditions can be negotiated. The novelty of this form of advertising also means that the perception and acceptance of advertising in computer games is uniquely high (see following chapter).

3.3.1.1. Technical aspect at SIGA

Current games can already come up with a photo-realistic appearance. The graphics environment and technical advances in modern games make it possible to include high-resolution advertisements in games, and even more, they even demand the authenticity of the game. For this reason, game publishers switched to displaying real products and brands in games many years ago.

An essential feature of the SIGA is the need to incorporate possible advertisements into the game as soon as it is programmed. Static advertisements are already integrated into the game when it is created. They are firmly anchored in the game and cannot be removed afterwards.

Cooperation with game manufacturers must be considered and planned long enough in advance. From a business point of view, collaboration between technical employees is at a hierarchically low level of grades.

3.3.1.2. Examples of static IGA

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Figure 10 Examples for static IGA Source: own screenshot

3.3.2. Dynamic IGA (DIGA)

Dynamic in-game advertising (DIGA for short) is far more interesting for the advertising industry. DIGA is the targeted display of advertising on placeholders specified in the game, which is possible for a certain period of time. Typically, as in the real world, these are advertising boards, billboards or Citylight posters in all variants, formats, shapes and sizes. In the dynamic advertising of computer and video games, the breakthrough of in-game advertising is generally assumed. Motifs displayed in games can be animated or motionless. There are hardly any limits to audiovisual creative possibilities. It is important that advertising is present and perceived, but does not interfere with, interrupt or disturb the game through excessive distraction. Up-to-date content, targeting and the measurement of advertising material contacts are possible through appropriate connections to ad server systems. (see Thomas / Stammermann 2007, p. 61ff) (see Gaca 2008, p. 11)

The main differentiation from SIGA is the possibility of updating the advertising content. Advertisers can therefore use DIGA more flexibly, check its effectiveness and include IGA campaigns in their media planning in the long term. (see Henning 2009, p. 27)

The biggest players in the DIGA market are Massive Inc., a subsidiary of Microsoft, and IGA Worldwide.

3.3.2.1. Technical aspect at DIGA

Only since around 2005 have games been connected to digital interfaces that enable the dynamic change of advertising content. This late development of the game industry can mainly be traced back to a lack of time and programmer potential. (cf. Thomas / Stammermann 2007, p. 63)

In Austria, 69% of households currently have the Internet (as of 2008). Compared to 34% in 2002, this increase is considerable. (see Statistics Austria 2009). Dynamic in-game advertising requires the ability to update itself. Distribution via the Internet connection from computers and consoles is suitable for this purpose. Thanks to the progressive expansion of Internet connections in Austria and other nations, DIGA is gradually getting a sufficient network structure to function effectively.

The advertising content is distributed in a targeted manner via so-called ad servers.

“The control parameters of an ad server are very diverse. Overlays can be made depending on the geographic location of the visitor (GeoTargeting), the time of day, the day of the week, the operating system and many other parameters. "(Lammenett 2006, p. 122) AdServer software also offers options for controlling and checking the effectiveness of the advertising (cf. Kropf 2003, p.97), even if, in contrast to conventional online advertising, there is no response channel or, like IP TV, only a weak response channel. (cf. Thomas / Stammermann 2007, p. 62f)

3.3.2.2. Examples of dynamic IGA

See Figure 2 Barack Obama advertises in the game ’Burnout Paradise’

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Figure 11 Example of a dynamic IGA Source: own screenshot

3.3.3. Interactive Product Placement (IPP)

Product placement describes the effective integration of brands and products into the action of performances in the cinema, video, TV, theater and other artistic works. (cf. Nieschlag et al. 2002, pp. 1120ff) Product placements can also be found increasingly in PC games.

The most important feature of product placement in computer games in the context of other presentations (film, theater, etc.) is the active interaction of the player with what is happening, while reception on television is passive. The playing time of a game also differs significantly from the length of a feature film. This in turn results in a longer lasting presence of the placement. (cf. Graebowiecki / Halff 2007, p. 48)

Product placement has gained in importance, in particular due to the oversaturation of advertising. According to Unger / Fuchs, there are three options for integrating product placements:

- "On-Set Placement" - placing the product in the framework of action
- "Creative Placement" - creative integration of the product into the framework for action
- "Image Placement" - the entire action relates to the product

(cf. Unger / Fuchs 2007, p. 297ff) With regard to in-game advertising, the "creative placement", ie the creative use of branded products in the course of the gaming experience, comes into its own. can best be linked to the AdGames described in chapter 3.3.4. As a distinction to SIGA and DIGA, there is the interaction with the object within the storage process. In this context, SIGA and DIGA can also be declared as "On-Set Placement".

Although there is still little literature and studies on placements in computer games, a positive advertising effect is generally assumed according to the laws of classical conditioning. Empirical studies such as, for example, by Nelson (cf. Nelson 2002, p. 80ff) testify that advertising has a demanding effect through interactivity in a game. The affective level is addressed in product placement. In order to be perceived by the consumer, however, the gamer must at least know the brand (cf. Grabowiecki / Halff 2007, p. 34ff).

3.3.3.1. Examples of product placement in computer games

Worms 3D, Tom Clancy’s Splinter Cell Pandora Tomorrow, and The Sims Online are prime examples of interactive product placement.

- In Worms 3D, a turn-based tactical game in which worms fight each other, a can of Red Bull is available as an item, which breathes fresh life energy into the worm.
- In Tom Clancy’s Splinter Cell, a tactical shooter, player-controlled protagonist Sam Fisher uses a Sony Ericsson P900 cell phone to communicate and a Sony Ericsson T637 camera phone to take photos of convicting terrorists.
- In The Sims Online, an online simulation about everyday life, a PC with different processors from Intel can be purchased with the character being played in order to make the character more satisfied. Furthermore, a McDonald’s branch can be entered to increase the well-being of the character, and a McDonald’s own can be operated to earn money.

(cf. Van der Graaf / Washida 2006, p. 105)

3.3.4. AdGames / Advergames

AdGames (or Advergames) is often used synonymously with the term in-game advertising in the literature. Gaca, for example, correctly recognizes the difference between these two different disciplines. At AdGames, a viable game world is developed around an existing product, brand or service. These AdGames exist in different quality levels. (cf. Gaca 2008, p. 12f) "Important features of AdGames are that they are simple, original, entertaining and, above all, free." (Oehler 2007, p. 5)

Typically, these games are distributed over the Internet or as a product insert. Prizes or competitions can be used to draw attention to the AdGames and thus to increase the number of players and visitors. For the acceptance of the game, however, competitions are assigned a subordinate role. The quality of the game, as well as measuring it against other players, is sufficient to involve the player and, following the principle of viral marketing, to encourage him to recommend the game to others. Over 50% of AdGames players recommend the games they play to an average of 2 to 5 friends. The resulting snowball effect, classic viral marketing, is a success factor for AdGames. (see Oehler 2007, p. 6ff)

According to a study carried out in Germany on the effectiveness and success control of advertising games, 82.5% of AdGames players stated that they deliberately ignored the advertising in the game for the sake of the game. However, 81.1% of respondents could remember a branding partner in the game. In fact, the players believe that they will manage to ignore the advertising partner. The unconscious perception therefore caused the test persons to recognize the product / brand / service that was being advertised. (see Stuke 2001, entire study)

As a result, advergames are specially designed for companies and serve the following purposes:

- Associative advertainment serves to increase brand awareness. In these games, scenarios in association with the brand are often played, an implementation in the sense of a product placement does not take place. One of the most famous and well-known examples is grouse hunting. A game from the brand Johnny Walker, in which only one label of the brand was integrated.
- Illustrative advertainment serves to increase the acquaintance of products. The interaction with the product is clearly in the foreground, without going into detailed product properties. This has an effect, for example, in simple racing games such as the VW Lupo Cup. Obviously you drive a Volkswagen Lupo without going into detail about its product characteristics or its driving characteristics.
- Demonstrative advertainment is used to illustrate the special properties of a product. During the course of the game, the player gets to know the positive product features. The branded sporting goods manufacturer Nike, for example, has produced a game in which you slip into the role of the US basketball star Vince Carter and get to know the Nike Shox basketball shoe better. In the course of this campaign, Nike was also able to collect valuable data on the preferences of players with regard to basketball shoes. Demonstrative AdGames have to be newly developed for the respective product. They tend to be more expensive to produce, in contrast to illustrative or associative AdGames, in which existing games can be adapted according to customer requirements.

(cf. Thomas / Stammermann 2007, p. 56f)

3.3.4.1. Examples from AdGames

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Figure 12 Examples of AdGames

Source: own screenshot

3.3.5. Summary: Forms of in-game advertising

Table 2 Summary of the forms of the IGA

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Source: own illustration

3.4. Legal Aspects

3.4.1. surreptitious advertising

There is currently no clear legal regulation with regard to advertising in computer games in Austria. Also, no precedent cases are known from the current judiciary.

Under the aspect of surreptitious advertising, however, in-game advertising can also be examined.

The Austrian E-Commerce Act (ECG), which regulates the provision of information society services, provides for the following:

“Section 6. (1) A service provider must ensure that commercial communication that is part of an information society service or that constitutes such a service is clear and unambiguous 1. is recognizable as such, 2. natural or legal Let the person who commissioned the commercial communication identify, 3. identify offers to promote sales such as gifts and gifts as such and provide easy access to the conditions for their use, as well as 4. contests and competitions as identifies such and provides easy access to the conditions of participation. "(ECG 2001: §6)

Furthermore, §26 of the Austrian Media Act (Federal Law Gazette No. 314/1981 as amended by Federal Law Gazette I No. 8/2009) provides for the following:

"Section 26. Announcements, recommendations and other contributions and reports for the publication of which a fee is paid must be marked in periodical media as" advertisement "," paid insertion "or" advertising ", unless daG (sic !) Doubts about the remuneration can be excluded by design or arrangement. "(MedienG 2009: §26)

"Violations of the labeling requirement of Section 26 MedG also constitute an immorality within the meaning of Section 1 UWG." (Www.bka.gv.at 2009)

The medium is "any means of disseminating messages or performances with intellectual content in word, writing, sound or image to a larger group of people by way of mass production or mass distribution;" (MedienG 2009: §1 (1) 1.) This definition converges with the properties of a computer game, and according to this definition, a computer game can be viewed as a medium.

A periodic electronic medium is "a medium that is a) broadcast electronically (radio program) or b) is available (website) or c) is distributed at least four times a calendar year in a comparable format (recurring electronic medium)" (MedienG 2009 : §1 (1) 5a.) Whether computer games can be regarded as a periodic electronic medium on the basis of §1 (1) point 5a. B) of the Austrian Media Act is legally questionable A legal decision could be different for each game. If computer games are not regarded as a periodic medium, Section 26 of the Media Act also does not apply. However, if it is applicable, judgment 4Ob56 / 99k of the Supreme Court clearly regulates:

“Section 26 of the MedG was introduced from the consideration that readers would place more trust in editorial articles than advertisements, because they obviously serve the interests of those who pay for them; This leads to the fact that (sic!) advertising sometimes endeavors to give advertisements the appearance of editorial messages in order to gain their journalistic weight. [...] To camouflage a competition measure in such a way that it is not recognizable as such to the courted is to be judged as a violation of § 26 MedG and thus as immoral within the meaning of § 1 of the UWG "(www.ris .bka.gv.at 2009)

In addition, the provisions of the ECG § 6 do apply to computer games. Accordingly, commercial communication should be recognizable as such.

A more or less applicability of the applicable laws regarding surreptitious advertising in computer games can be argued. Ultimately, the assessment of compliance with the requirement to separate advertising and editorial content remains open.

"Decision text OGH 19.11.1991 4 Ob 124/91

[...] Whether the labeling of the advertisements mentioned in § 26 MedG is clear as advertising can only be judged on the basis of the special circumstances of the individual case. (T2) Veroff: MR 1992,75 [...]

Decision text OGH 29.09.1992 4 Ob 60/92

[...] No labeling requirement if the "announcements, recommendations as well as other contributions and reports" are clearly recognized as advertising by the public by their type and presentation. (T2) Veroff: OBl 1992,205 "(www.ris.bka.gv.at 2009)

3.4.1.1. Conclusion surreptitious advertising

Although the applicable legal texts leave the courts leeway with regard to the interpretation of surreptitious advertising, the basic legal underlying idea can be determined on the basis of existing legal decisions that advertising should be recognizable as such by the recipient. Whether this separation requirement is clearly observed in each individual case remains a matter for the courts. It can be assumed, however, that no exaggerated measures may be necessary which could destroy the atmospheric game environment. The content-related delimitation of the advertising to the computer game can already be given by their respective presentation. Infringements in the sense of unfair competition (§ 1 UWG) must therefore be checked on a case-by-case basis.

3.4.2. Protection of minors

The protection of minors in Austria is not uniformly regulated, but rather a matter for the respective federal states in accordance with the Austrian Federal Constitution (Article 15 B-VG). The nine state youth laws partly contain different provisions with regard to media that are harmful to young people, which are clearly shown in the following table.

Table 3 Youth protection legislation in Austria on the subject of "media"

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Regarding the application of young people, the EU Directive 2007/65 / EC with the title ’Audiovisual media services without borders’ of December 19, 2007 should be mentioned. It is a recommendation of the European Union which regulates product placements in audiovisual media. It loosens the provisions of product placement as far as possible, but also creates a general ban on advertisements in children's formats, among other things. This directive has to be implemented by the member states by December 19, 2009, but the need for adaptation for Austria remains low in the existing laws, provided that the term 'audiovisual medium' is not taken too broadly and Directive 2007/65 / EC as Television directive considered. (see http://portal.wko.at 2009)

It remains to be seen whether EU Directive 2007/65 / EC is considered to be implemented and computer games and other media do not have to be included in the legislation. Relevant for the advertising industry is the possibility of advertising in computer games that are suitable for young people.

3.4.3. Age ratings

3.4.3.1. Pan-European Game Information (PEGI)

"Pan-European Game Information" (PEGI for short) is an age classification system for computer games. This is managed by the ’Interactive Software Federation of Europe’ (ISFE for short). The practical implementation of PEGI is carried out by the Netherlands Institute for the Classification of Audiovisual Media (NICAM for short) as well as for games with ratings 3+ and 7+ by the British Video Standards Council (VSC for short). If a game contains online content, as is the case with dynamic in-game advertising, for example, it is also classified using the PEGI-Online quality seal, which guarantees that the manufacturer uses online functions responsibly. (see www.peoi.info 2009)

The PEGI system consists of two parts: an age recommendation and a content assessment. Various symbols are intended to help parents, handlers and young people to quickly classify computer games according to their age rating.

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Figure 13 PEGI symbols for age recommendation and content rating of computer games

The PEGI system is generally used in Austria. This is primarily anchored in the Youth Protection Act of the State of Vienna.

3.4.3.2. Federal agency for the positive rating of computer and console games (BuPP)

The federal agency for the positive rating of computer and console games (BuPP for short) of the Austrian Federal Ministry for Economic Affairs, Family and Youth serves as an orientation aid for parents, young people and educators. It prepares reports with the aim of helping educators choose computer games for their children. (see http://bupp.at 2009)

3.4.3.3. Entertainment software self-regulation (USK)

The entertainment software self-control (USK for short) is also relevant for the German-speaking computer games market. It regulates age ratings for the games market in the Federal Republic of Germany. (see www.usk.de 2009)

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Figure 14 USK symbols

3.4.3.4. Game rating systems worldwide

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Figure 15 Overview of game rating systems worldwide 3.4.4. privacy

“Everyone has the right to confidentiality of their personal data. This is constitutionally anchored in Austria as a fundamental right. "(Www.bka.gv.at 2009)

With dynamic in-game advertising, it is possible to send out personalized advertising using the player's online connection. For this, user data that has been collected in advance is of course necessary. Data from the player is also collected here as part of an advertising measurement. For the purpose of legal protection, a data protection declaration in the game's terms of use, which the player accepts, is essential. (cf. Thomas / Stammermann 2007, p. 79)

3.4.5. In-game advertising as a material defect

Certainly a legal gray area - but possible in principle - is the application of the warranty law regulated in the ABGB. Exaggerated in-game advertising can impede the course of the game. Be it due to the size of the advertising that overlays the field of vision and action, or due to technical complications such as delays in reloading dynamic advertisements. These problems are conceivable and can occur.

"(1) Due to a defect, the transferee can demand the improvement (rework or amendment of the missing item), the replacement of the item, an appropriate reduction in the fee (price reduction) or the cancellation of the contract (conversion)." (ABGB 2009, §932 (1))

The question to be clarified from a legal point of view lies in the interpretation of declaring these problems as deficiencies. If this question is legally relevant in the future, an individual clarification based on the individual case is appropriate, if necessary.

3.4.6. Debate killer games

“Killer games are computer games in which the realistic simulated death of people in the fictional game world is an essential part of the game plot and the success of the player mainly depends on it. The graphic representation of the acts of killing and the motives for killing immanent in the game must be taken into account. ”(Grote 2006, p.5)

Caused by the most recent rampages, computer games with depictions of violence are a hot topic of discussion for politics and the general public on an international, highly populist level. Again and again, but especially after running amok, the killer game debate has flared up in recent years.

In this, killer games are forbidden from causing the virtual and real world to merge through the realistic depiction of killing mechanisms, thus lowering the inhibition threshold and acting as a trigger.

In the Federal Republic of Germany laws have already been considered to ban killer games as far as possible, but ultimately not passed. For the sake of completeness, they have nonetheless been mentioned in this work, because changes in the legal and emotional game market cannot be ruled out by re-igniting this discussion.

3.5. In-game advertising market

In previous studies, the study by the internationally recognized polling ’YANKEE Group Research’ from Boston is most frequently cited in relation to the market development of in-game advertising. The American market research institute last presented a study on in-game advertising in July 2007: "Advertising and Games: 2007 In-Game Advertising Forecast". This global study predicts that advertising in computer games, including SIGA, DIGA and interactive product placement, will grow rapidly by 2011 (see Figure 1 In-Game Advertising Forecast of the Yankee Group (2007) on page 3) dynamic in-game advertising, as well as a general strong growth of the computer game market. Michael Godman, Director of Digital Entertainment of the Yankee Group, says that omnipresent networking is driving the media transformation process. Advertising in games is becoming more and more valuable, which is reflected in the advancing growth. (cf. Thomas / Stammermann 2007, p. 16f)

Other studies show a similar growth in advertising in games, even if the figure for the market volume is different.

Table 4 Market forecasts for in-game advertising

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In-game advertising is still in its starting holes in its market development. Studies to date show the potential of the market. In future, relevant response data will also be decisive for the breakthrough. Because of this, market research companies and participants are trying to introduce measurement systems for this advertising in computer and video games. Industry experts currently estimate the market for in-game advertising in Germany at 35-40 million euros in sales. (see Klein 2009, p. 88)

For Austria there are currently no adequate studies or market data on the current market situation for in-game advertising. On the basis of a comparison with other markets, however, an approximate value can be established.

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Figure 16 Calculation of Marktgrofte IGA Austria

Note on the calculation: As far as market data are available, attempts have been made to show the degree of correlation between the markets for Austria (AT), Germany (DE) and the United States of America (US). The development of the German computer and video games market is somewhat similar to the development of the American market (correlation coefficient = 0.88), and the advertising markets of the two countries developed similarly (correlation coefficient = 0.92). On the basis of this knowledge, it is assumed that the market for in-game advertising in Germany can develop as quickly as the US market, for which explicit forecast data is available. Based on the IGA market volume (35-40 million euros) for Germany presented by Benjamin Klein, a forecast for the German market is possible. The Austrian total gross advertising market averaged 14% of the total German gross advertising market in the period 2000-2009. The Austrian and German advertising market correlates with a coefficient of 0.88. It is therefore assumed for the Austrian in-game advertising market that it is in the same relationship to the German IGA market that has already been calculated. Viewed critically, these figures should therefore not be viewed as exact, but rather as approximate. However, Table 4 shows in-game market forecasts

Advertising ’on page 41 that, even on the basis of empirical studies, no uniform and precise market assessment can be made.

Accordingly, the current market volume for in-game advertising in Austria in 2009 has to be estimated at around 6.6 million euros. In relation to the gross advertising market in Austria, this share is just 0.31%. On the basis of the expert interviews (see Chapter 7.2) and the assessment of IGA in an inter-media comparison (see Chapter 5.2), however, it can be assumed that the in-game advertising market in Austria is in any case smaller than the approximate calculated value is.

3.5.1.1. Market participants

A short overview of the most relevant market participants in the field of in-game advertising completes the market overview. The following companies are marketing agencies who have contracts with game publishers to place dynamic in-game advertising and have the potential and know-how to implement in-game strategies on a large scale.

IGA Worldwide ’founded in 2005, claims to be the leading network for dynamic in-game advertising. Its headquarters are in New York City, with offices in Los Angeles, San Francisco, London, Paris and Berlin. (see www.igaworldwide.com 2009)

Massive Inc ’, founded in 2002, has been a subsidiary of the software group’ Microsoft ’since 2006. Its headquarters are in New York, with offices worldwide in San Francisco, Los Angeles, Chicago, Toronto, London, Paris, Cologne and Seoul. (see www.massiveincorporated.com 2009)

Jogo Media, founded in 2006, is headquartered in New York. Offices are located in Orlando, London and Dusseldorf. (see www.iogomedia.com 2009) Double Fusion ’is headquartered in San Francisco. There are also offices in Los Angeles, Chicago, New York, London, Tokyo and Jerusalem (see www.doublefusion.com 2009)

Relevant for the Austrian market and repeatedly cited as a prime example and pioneer for functioning in-game advertising in Austria, the game manufacturer Greentube should not go unmentioned. In 1998 the AG was founded as Durrschmid & Reisinger OEG, and in 2000 it was transferred to Greentube AG. With regard to in-game advertising, the big breakthrough came with the development of the high-quality, advertising-financed free game ORF Ski Challenge. Every year, just in time for the start of the FIS Ski World Cup, a new, more optimized version is becoming increasingly popular. In Germany, this game is managed by ProSieben in Switzerland by the Swiss television broadcaster SF. The focus is on national and international skill games in which players can prove their skills in dealing with the new media. The headquarters of the AG is in Vienna. (see www.greentube.com 2009)

3.6. Target group analysis

The target group for in-game advertising is generally considered to be people who use the medium of computer games (see Chapter 3.1.2 Definition of computer games). These people are hereinafter referred to as computer gamers.

Since there is little media data on computer and video players for the Austrian market in relation to the German market, data that were collected for the German market are used in the course of this work from time to time. Based on the calculations in "Appendix 1 - Comparison of household expenditure DE vs. AT", in which the shopping baskets of Austria and Germany are subjected to a correlation check, it can be said that German and Austrian consumers behave in a similar way. In "Appendix 2 - Comparison of media usage time DE vs. AT" it can also be seen that German and Austrian citizens show very similar media usage time behavior. Together with the knowledge that the advertising and gaming markets in Austria and Germany are developing similarly (see chapter In-Game Advertising Market 3.5, Figure 16), it can be pointed out in principle that the demographic and sociographic consideration of computers - and video players of both nations and a derivation for the Austrian market is possible and authentic.

If one thinks of computer games, the popular opinion is to classify them as a concurrent leisure activity of adolescent mostly male adolescents. The following brief summary of already existing studies aims to present the target group for in-game advertising, ie the stereotype of computer gamers, more correctly.

In truth, however, in the study Typology of Desires, 35.9% of Germans state that they at least rarely play computers. Still, 22.3% play at least occasionally, and 9.7% play regularly and intensively.

3.6.1. Non-player

For a better understanding of the target group it serves to understand the motives of the people not to want to be part of the target group. The market research institute TNS commissioned a cross-country study on behalf of Electronic Arts.

The most common reason respondents give for not playing computer and video games is disinterest. In France, this motive applies to almost 60% of non-players, in Germany it is 39% and in Great Britain the group of those who are not interested is the smallest with 22%. There is also a smaller group who say they don't have enough time to play. In France this is 22%, in Germany 17% and in Great Britain 14%. For none of the non-gamers surveyed, the possible negative consequences of computer and video games are not a decisive argument for their abstinence. To a very limited extent, devaluations of computer and video games are expressed, such as "I have better things to do" or "I don't like it". The rest is spread out with very little frequency on motifs of various kinds.

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Figure 17 Motives for not belonging to the target group

3.6.2. Demographic data

The Entertainment Software Association, or ESA for short, is an American association of the leading game publishers, including Microsoft, Capcom, Electronic Arts, Ubisoft, Warner Bros, Sony, Nintendo, Eidos, etc., whose aim and task is to on behalf of its members to exercise copyright management and to take care of government relations and market analysis. Every year the ESA publishes the so-called ’Essential Facts About the Computer and Video Game Industry’, which summarizes relevant market surveys for the computer games industry.

According to the ESA's 2009 annual report, the average age of a computer player is 35 years. The vast majority of players are between 18 and 49 years of age. A full 40% of computer gamers are female. The most popular genres in computer games are strategy, role-playing games, and family entertainment. (see ESA Essential Facts 2009, p. 2ff)

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Figure 18 Demographic data from the ESA study

The German study ’Typology of Desires’ provides very informative and up-to-date data.This is a representative long-term study that randomly records a total of six thousand characteristics with regard to attitudes, demographics, media use and product use for the German market. The study has been carried out regularly since 1974. The target group of computer gamers can also be identified in the study. The following figure aims to highlight demographic differences between the computer gamers targeted by in-game advertising and the general population.

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Figure 19 Demographic comparison of computer gamers vs. total population

You can immediately see that the data on the gender ratio of computer gamers match the data from the ESA. Thanks to this representation, however, it can also be seen that - in relative terms - more men than women tend to use computer games. If the gender distribution in the total population is still balanced, then men outweigh the computer gamers with 60 percent of the total. In relation to the entire German population, computer gamers are also more likely to be young, but not, as is often anticipated in the vernacular, teenagers. Two-thirds of gamers are middle-aged between 20 and 49 years of age.

Families with children are the largest group of computer gamers at over 50%. Most strikingly, the distribution in relation to the population shows a higher weight in young families with children. It is more people in younger phases of life who play computer games more often. In the later phases of life, the distribution of players is the same in the overall comparison. Older people seem to be less open to computer games, probably due to the young age of the medium (see Chapter 3.2 Developments and Milestones).

Since computer games in no way pay as physiological needs or serve to maintain a generally acceptable minimum standard of living, the freely available net income is the relevant budget pot from which consumers pay for games. It is therefore important to consider the amount of this income and its distribution. The comparative representation in Figure 19 shows a similar pattern on both sides and no significant deviations. It should therefore be noted that computer gamers have a purchasing power similar to that of the rest of the population.

3.6.3. Sociographic Insights

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Figure 20 Accessibility for advertising - computer gamers vs. general population

The study Typology of Desires also shows a very important aspect for this work, because in Figure 20 it can be seen that computer gamers are a bit more open to advertising when asked 'Sometimes I think advertising is really great'. than the general population shows this characteristic.

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Figure 21 Leisure activities among computer gamers

A 2006 study by TNS Emnid Media and Social Research showed that players have a lot of leisure planning. Only 0.6% of gamers named video games as their favorite pastime. Sports (17.7%), television (10.7%), reading (9.6%) or meeting friends (4%) were much more important for players. (cf. Grabowiecki / Halff 2007, p. 24)

3.6.3.1. Player typologies

On the basis of the demographic data on players of computer and video games ascertained in Chapter 3.6.2, it can be stated that people who use this medium tend to be younger, more male and more open to advertising; However, the stereotype of computer gamers generally leads a balanced life. Since none of the characteristics are exorbitant, the target group is generally considered to be heterogeneous. Grouping this target group in terms of a higher degree of homogeneity in sub-groups helps to better understand this target group.

The representative study ’Spielplatz Deutschland’ by the advertising agency Jung von Matt, the game manufacturer Electronic Arts, and the magazine GEE Media & Marketing GmbH attempted to summarize the different types of players in several sub-groups. A distinction is made between five different types:

- the recreational players (54%)
- the habitual players (24%)
- the thinkers (11%)
- the fantasy players (6%)
- the intensive players (5%)

Only people relevant to advertising are taken into account, that is, those in the mouth from the age of 14. However, people under the age of 14 could play a major role in future considerations, as the integration of the computer game medium has always started earlier and more intensively. (see Kabel 2005, p. 12f)

3.6.3.1.1. The recreational player

The recreational player represents the majority of the players. He is in the middle of life, is represented in all age groups, but at 44 years has the highest average age compared to other types of players. In comparison, his household net income is in the middle to upper range, men and women are equally represented. Video games is just one of his many pastimes such as sports, family and friends, reading, watching TV. He often decides spontaneously to play a computer game and avoids more complex or complicated game scenarios. (see Kabel 2005, p. 14f)

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Figure 22 Type of player: recreational player

3.6.3.1.2. The habit gambler

For casual gamers, computer games are part of their media understanding. You grew up with computer games, and now you do not do without this medium as you get older. Video game stars from their childhood like Mario, Pacman and Co are very important to them. Habitual gamers follow developments on the game market continuously and across genres. Their interest in video games is therefore greater than that of recreational players. With a share of 24%, they form the second largest group among computer gamers. Due to the many different hobbies and leisure activities, there is often little time to play, but now and then he takes the time to live out this youth hobby as an adult. Habitual gamers are open-minded and have a lot of experience and up-to-date knowledge of the game market. This enables them to get people who are new to video games enthusiastic about this medium (for example at parties with karaoke or quiz games). A quarter of habitual gamblers are female. (see Kabel 2005, p. 20f)

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Figure 23 Type of gambler Habitual gambler

3.6.3.1.3. The thinking player

With 11 percent, the thinking player makes up the third largest share. In terms of leisure and consumer behavior, he differs little from the recreational player. The most important difference is the average age, which is 6 years lower, as well as the basic intention to play the computer. The thinking player is not interested in fun and sports games, strategy and puzzle games are much more his genre. Although it is also possible in these genres to play online with human opponents, the thinking player prefers to solve puzzles or fight strategic battles alone in front of his PC or console. (see Kabel 2005, p. 32f)

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Figure 24 Type of player thinking player

3.6.3.1.4. The fantasy player

Modern computer games enable shimmering and vast worlds with almost unlimited possibilities. MMORPGs, in which millions of players scour an online world with specially created characters, are beginning to establish themselves (see Chapter 3.2 Developments and Milestones). But even in the offline area, entire fantasy realities with partially photo-realistic graphics are implemented in computer games in role-playing games. In these fantasy worlds, role-players can create a world according to their ideas and achieve things that are often denied them in real life due to socio-cultural constraints. 6% of video gamers count as fantasy gamers who, thanks to the possibilities in modern role-playing games, are only too happy to move into a second reality that they can convey. Role players are family people; almost 75% of role players live in a three-family or multi-family household with a medium to low net household income. (see cable p. 28f)

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Figure 25 Player type Fantasy player

3.6.3.1.5. The intensive player

The stereotype of the intensive gamer comes closest to the classic computer gamer and "gamer" image. With only 5%, however, he represents the smallest proportion of the gamer types. He has a preference for action-heavy games, with 80 percent as a gamer group has the highest proportion of men and is in the early 20s. Intensive gamers are often still in school or are in training. He uses the medium of computer games most frequently among all types of gamers, but rarely alone. Online or in company over a home network with friends is played in various multiplayer modes Despite his intensive use of the computer game medium, his other media usage behavior is on average. Cinema, events, friends and sports do not lag behind his favorite computer game hobby. (Cf. Kabel p. 24f)

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Figure 26 Player type intensive player

3.6.4. Media usage

When it comes to media use, computer gamers are in no way inferior to non-computer gamers. Only in the print area are people who play digital games less well read than the general population. A situation that is more than compensated for by the predominant use of the Internet. The German population as a whole uses the Internet as a medium with 43%. The computer gamers raise this percentage

in any case, because 84% of them use online offers at least occasionally. Movies as a medium are also very popular with video gamers, almost twice as popular as with the rest of the population. The media use of computer players in traditional media such as television or radio is similar to that of the general population. The evaluation shown below provides a precise overview of the use of the relevant media by computer gamers.

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Figure 27 Media use of computer gamers vs. total population

3.6.5. Consumer behavior and attitudes

On the basis of the demographic and sociographic knowledge acquired so far (Chapter 3.6.2 and Chapter 3.6.3) it can be seen that there are definitely different types of computer gamers who always have strong purchasing power. Now it is important to determine how this target group behaves in terms of advertising, but also fundamentally as a consumer.

Here, too, interesting findings can be evaluated on the basis of the basic data from the study Typology of Requests. The exact results of the evaluation can be viewed in ’Appendix 3 - Consumption attitudes among computer gamers’ of this work. In general, it can be seen that computer gamers, compared to the general population, lead a far more modern consumer life than society as a whole. Video gamers generally prefer to indulge in a little luxury than the rest of the population. You place more value on quality in many areas of life (going out, clothing, vacation, car, etc.) and describe yourself as demanding customers. The brand itself is more important to them as a product feature than to the general public. The most striking difference between them and the crowd is their consumption self-control. 25% of the players often spend more money than planned, approx. 18% see shopping as entertainment and also like to buy something spontaneously while strolling. Nevertheless, they consider the economic situation of their own household to be secure. Advertising is generally more openly received by gamers than by the rest of society. Fewer computer gamers have even put the sticker "Please no advertising" on their mailboxes. 57% of video gamers consider it important to set themselves apart from the gray crowd. This is 12 percentage points more than this intention is expressed in the general population .

With regard to the interest in certain product groups, the specific preferences are mostly similar among the group of computer gamers and the general public. However, there are also product groups with significant differences (more than 10 percentage points difference). Computer gamers are much more interested in CDs & music, of course in video games, personal computers and online services / internet, as well as new means of telecommunication (such as photo cell phones or UMTS). A relative disinterest can be seen in the product area relating to health issues. Cars, training and sportswear are less prominent, but still with almost 7 percentage points overhang. There is evidence of a consistent multiple interest in consumption and consumer goods among computer gamers. All named product groups Considered on average, an arithmetic mean of 2.2 percentage points of increased consumer interest - this corresponds to a total of 154 percentage points more - is discernible.

3.7. Advertising effect

For the term advertising effect, as for the rest of the research into effects, it applies that different phenomena of advertising effect exist on different levels and must be separated. (cf. Bonfadelli 2004, p. 134f) Advertising works in different ways.

The most important thing for advertising is its result, i.e. the so-called "responses" achieved by the customer, whereby "answers" must not be understood literally as the customer's reaction (cf. Klein 2009, p . 21).

The AIDA model is an often cited advertising model that has been criticized because of its simple and less complex structure.

The definition of the advertising goals is of fundamental importance for the planning, implementation and continuous improvement of advertising. Operational advertising goals must be determined in advance, then measured and controlled and, if necessary, adjusted. Although economic goals such as turnover and profit are easily measurable and ultimately what matters, in advertising one uses primarily non-economic goals (e.g. attention, first touch, recognition value) to record the effect of an advertisement. In advertising, target persons go through a '' ladder "which leads in their last step to the purchase decision. In this course, the familiar from LEWIS is representative of various of these ladder (for example from Behrens, Colley, Kotler, Seyffert, etc.) Called the AIDA model, it divides the ladder into

- Level I: Attraction (stimulus / attention)
- Level II: Interest
- Level III: Desire (desire / desire to possess)
- Stage IV: Action (act / purchase)

It is therefore important to define before every advertisement what effect the advertisement should achieve based on this step ladder. (see Weis, p. 461f)

3.7.1. Advertising effectiveness model in-game advertising

“In contrast to extra-economic goals (level of awareness, update and image goals), economic goals such as increasing sales and profits when using in-game advertising are not in the foreground, since an impact measurement in this regard is based on the attribution - problem is extremely difficult. "(Klein 2009, p.22)

The real advertising effect of in-game advertising cannot always be found in the purchase of a service or a product. It therefore makes sense to refer again to the different phases of advertising effectiveness.