Web analytics, web metrics, and how to use them to track and improve conversions

In-Game Advertising seems to work best when the ads are large and near the center of the viewing area (where gamers are playing) according to a new study by Interpret, commissioned by Double Fusion; I read about the In-Game Advertising from a post titled 81% Of Gamers Exposed in Adotas.

Now that Google is getting ready to start In Game Advertising via AdSense it's becoming more important to understand what what works for In-Game Advertising (and this applies to Advertising in Second Life and other 3D Virtual Worlds, which would have similar dynamics).

According to The Seattlepi.com:

"..The company said publishers will be able to use the Google system to put advertising in their games, and collect revenue. Advertisers, in turn, will be able to work through the Google system to buy ad space within games.

Schaffer said the company will start with ads in Web-based games, with plans to move into PC and console games later.

Google is entering a growing market. A Yankee Group study this month estimated that worldwide spending on in-game advertising will exceed $971 million by 2011, from about $78 million last year. Common types of in-game ads include animations displayed between levels in casual games, or sponsored billboards dotting the digital landscape in more complex games."

So, in the next 4 years In-Game Advertising via In-Game Ads will grow by 1300% from what it was last year - that's phenomenal - and I bet a conservative figure that will be met by the end of 2009.

I also see In-Game Advertising being reported into Google Analytics sometime in the future; in fact, In-Game Advertising for certain companies is already being reported into the AdWords/Adsense Google backend according to Seattlepi.com:

"..Some game companies already use Google's existing AdSense system for Web sites as one means of putting ads in their games. Examples include Seattle-based PopCap Games. But PopCap can do that because of the capabilities of its own advertising infrastructure, said James Gwertzman, PopCap vice president for business development.

The launch of the new Google system, specifically designed for putting ads into video games, will help many smaller developers, which don't have the same infrastructure, Gwertzman said."

I think In-Game Advertising is a hot area to track in the next year or two as competition heats up and more In-Game Ads start showing up all over the place:

"..Google will face competition from existing providers of in-game advertising including IGA Worldwide and Double Fusion.

Xbox 360 maker Microsoft entered the market last year with its acquisition of another in-game advertising company, Massive Inc., focusing initially on advertising in games offered through Microsoft's Xbox Live system and MSN Games site."