Sony, Activision Blizzard doubtful of in-game advertising effectiveness

A lot of people have split opinions on the effectiveness of in-game advertising. However, Sony’s chief executive Howard Stern expressed his doubts on the potential of that particular marketing trend. He wasn’t alone in the idea either; other big names from major companies such as NBC Universal and Activision Blizzard voiced similar sentiments.

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During the World Economic Forum in Davos last week, there were many hopeful techies and ad agencies looking into the new year as one where modern day advertising – in social networks, video games, and mobile phones – may soon become the mainstream marketing trend.

However, Sony’s chief executive Howard Stringer had other opinions in mind. Despite the forum’s positive take on in-game advertisement, he expressed his doubts on the marketing trend’s effectiveness in the medium. Taken from an article in the Financial Times, Stringer was quoted to have said:

The [supposed] solution to everything at the moment in the digital space is ad supported. While advertisers are happy to talk that up, there is a limit to the amount of money available.

Similar sentiments were voiced out by NBC Universal chief executive Jeff Zucker in the field of mobile advertising. Activision Blizzard chief executive Bobby Kotick also echoed Stringer’s sentiments about advertising-funded video games.

However, new forms of advertising were being explored as well. Advertisers were hoping to engage consumers into more interactive models, who are slowly drifting away from the usual radio, print, and television ads.

Researchers proved that many consumers found that advertising in mobile, video games, and social networking to be rather “intrusive”, although many were still willing to put up with it in exchange for free content. While this is especially true with the younger consumers, many business models are already adjusting to growing trend.