Friday, 16 Feb, 2007 Politics

Google's New Purchase Called Adscape


Adscape Media Inc. is a company that provides in-game advertising. Google has agreed on purchasing the company for $ 23 million. This information was provided by Red Herring, a technology site which cited in a report made on Thursday the sources that are familiar with the matter. However, the spokesman of Google did not leave any comment stating that the current policy of the company is not to respond to "rumor or speculation".

The in-game advertising market is currently on its way up and, as analysts say, if the acquisition will take place it will provide a great boost to this market. Today Adscape has two main competitors: Double Fusion and IGA Worldwide. The two have already made their deals with major publishers. One of the moist important Adscape's competitors is Microsoft's Massive Inc. This in-0game ad company was bought by Microsoft Corp. by $ 200 million. It has already made a deal to place its ads in several on-line games developed by UbiSoft Entertainment SA, THQ Inc. as well as Take-Two Interactive Software Inc.

Although Adscape looks forward to deal with major publishers, its value is still to be based on the team working within the company, a team that places dynamic advertisement on billboards that can be seen in video games. Due to the fact that Goggle had success in creating a Web search advertising business having a huge list of small and large marketers, Adscape is to strike a jackpot if it makes a deal with Google, which currently holds one of the most experiences ad sales staff. Adscape has already received funding from Atlanta's HIG Ventures.

Several large players in the industry of video games starting gaining more interest in in-game advertising, however, they are still cautious about having high expectations. According to the data provided by Park Associates, in-game advertising in 2005 had revenue of $ 80 million and the company forecasts that the revenue is to increase up to $ 605 million.

Today video game publishers say that there's more space available for in-game advertising so investing in the new genre is worth the risk. However, advertisers are still quite unconfident about placing in-game ads. Analysts say that with such giants like Google and Microsoft can motivate marketers to place their ads and convince them that video games represent a viable medium for various advertising.

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