Have you recently noticed a few dynamic in-game advertisements while playing a video game? If not, you may not be paying close enough attention... ;)

CBS news linkage (http://www.cbsnews.com/stories/2005/07/15/tech/gamecore/main709467.shtml)
In-game ads gone too far? (http://arstechnica.com/journals/thumbs.ars/2006/8/15/4983)

More game companies are even signing deals regarding in-game ads (http://www.dailytech.com/article.aspx?newsid=8175).

The topic even has its own Wikipedia page (http://en.wikipedia.org/wiki/In-game_advertising)! :)

A bit more reading material:
Electronic Gaming in the Digital Home: Game Advertising paints a complete picture of the fledging game advertising industry (http://www.researchandmarkets.com/product/66dbbc/electronic_gaming_in_the_digital_home_game). The report includes analysis and forecast for different game advertising models, including SIGA, DIGA, display, advergames, game tournament, and virtual worlds. It also provides profiles of 26 key players in the game advertising industry and comprehensive consumer perspectives.

With an average monthly household expenditure of less than half a dollar in 2006, compared to $37 for broadcast TV, electronic gaming represents a seriously under-leveraged advertising medium, said Yuanzhe (Michael) Cai, Director of Broadband and Gaming at Parks Associates. Nevertheless, if executed in the right way, game advertising can provide a win-win solution for advertisers, game developers and publishers, console manufacturers, game portals, and even gamers.

As for my personal opinion on dynamic in-game ads in video games, I honestly don't mind too much - especially if the advertisement fits into the game. You know how it is... I don't want to see a hamburger sign in the middle of a Martian landscape. But if ATI or Intel wants to throw up an ad for a LAN party or something, and if it fits, why not?

With the extremely high cost of game development, expect this type of thing to happen more in the future IMO.

Cheers!

Maikeru Hatamoto

Here's one of our recent stories on the topic, especifically on EA's partnership with an in-game ads provider for some of its sports game franchises:
http://www.techspot.com/news/26298-microsoft-partners-with-ea-sports-for-dynamic-ingame-ads.html

BTW, between you and Rilla927 there is a new surge of great up to date news on this board. Keep up the great work! Maybe we can bring some more members to voice an opinion and keep the fresh stories coming here as well! :)

Additional linkage:

In-game advertising... works? (http://blogs.mercurynews.com/aei/2007/08/massive_and_nielsen_report_on_in-game_advertising_it_works.html)

Double Fusion Japan digs it (http://www.dmwmedia.com/news/2007/08/09/in-game-ad-network-double-fusions-japanese-unit-raises-funds).

In-game ads misunderstood? (http://www.next-gen.biz/index.php?option=com_content&task=view&id=6654&Itemid=2)

Julio, glad to be of assistance! :)

I think I remeber reading about it in a EGM magazine once (i think it was egm, probaly was...) they do it to bring down the costs of game development and pass the savings on to you... right :suspiciou

The only game I could see advertising real world products in would be The Matrix, Sims Online, Second Life or any "rea"l world simulation. I'd not like seeing ads in Everquest, WoW, UO or any purely fantasy simulation. I'd really like ads to stay out of game.

Stick'o ram: Considering the already high cost of creating and developing a video game, I am surprised to hear how many gamers are not very forgiving towards in-game ads.

Cinders: I hope gamers will not have to deal with ads in any game that they already have to pay per month to play. ;)