We have all been wondering how Funcom are going to sustain their free offer. When the press release back in December said “This unique move will allow us to test important new business models” I assumed that they were talking about increasing their total user base and hoping that enough upgraded to a paid scheme for numbers to work out. Looks like either I was wrong and this was always the longer term plan or the numbers didn’t ad up after all.
The new deal is that Funcom will present / bludgeon (delete according to taste) the players with in-game billboard ads. Upgrading to a paid scheme makes them go away (press release below).
It’s a weird type of anarchy if you ask me. And coming fast on the heels of the /pizza story, I don’t mean to be a drama queen, but: is this the end of the virtual world as we know it?
Here is the press release:
Source: www.funcom.com/funcom/news/press_release.2005-02-24
Anarchy Online first game to feature dynamic in-game advertisement billboards
Durham, USA — February 24, 2004 – Funcom, developer and publisher of top video game titles like Anarchy Online and The Longest Journey, has signed an exclusive agreement with Massive Incorporated, creator of the world’s first video game advertising network. In a revolutionary deal all free players of Anarchy Online will see dynamic in-game advertising billboards in central areas of the game. Paying subscribers will not see the advertisements.
Mitch Davis, CEO of Massive Incorporated said "We’re thrilled to add Funcom’s leading titles into our advertising network and broaden our reach with their hundreds of thousands of gamers. We’re excited about changing the game development business model to provide a new source of significant revenues beyond box sales and subscriptions and delivering a powerful new medium to global advertisers."
Last year, TV rating company Nielsen Media reported a fall in the amount of prime-time TV viewing among 18 – 34 year old men. In a report from Ziff Davis Digital Gaming they reckoned that a quarter of gamers had swapped TV watching time for playing time. Seeing that in 2003 US advertisers spent $ 12 billion on TV spots targeting young men while the equivalent figure for in-game ads was just $ 10 million, the US advertising landscape is poised to undergo changes in the years to come. As millions of young men and women change their lifestyle and entertainment habits, advertisers now finds an additional venue to reach the coveted 18 – 34 demographic through the medium of games... and Funcom takes the first step in March 2005.
Trond Aas, CEO of Funcom stated "As opposed to a medium like TV you know that the gamers eyes are always watching the screen while playing games. With official ad measurement methods from Nielsen we are sure advertisers will cherish this revolutionary new opportunity to reach the extremely valuable 18 – 34 demographic. Through our own research we know that most gamers want in-game advertisement to heighten the sense of realism. Seeing that the live billboards in Anarchy Online do not interfere with gameplay I am confident our free players will welcome the permanent continuation of our complimentary subscription in the ultimate sci-fi MMORPG."
Also you should check out the Free Offer page: http://www.anarchy-online.com/free/ad_campaigns/freecampaign.
Can anyone see a reference to in-world advertising here? They don’t seem to be mentioning it in the public landing page for the offer. Though the page does say "Immerse yourself in a world with a fantastic musical score and unique art direction." So, if ad's break immersion, is this a false advertising claim?
I’m loving the get out clause at the end though:
*You can play free of charge until January 15th 2006. Should Funcom deem that a too high-increase in server load or other unforeseen events will lessen the experience for existing players the offer will be terminated at our discretion. The free version does not include access to any of the three expansion packs. Should you wish to upgrade to any of the expansion packs monthly subscription and client fees will be added.
And just to save you using our delighrul TN search facility, yes we’ve been covered in game ad and Massive Inc. before:
Oh great! http://terranova.blogs.com/terra_nova/2004/07/oh_great.html
Ad Deals are Big Deals in Virtual Worlds http://terranova.blogs.com/terra_nova/2004/12/ad_deals_are_bi.html
Advertising and Branding in Virtual Worlds http://terranova.blogs.com/terra_nova/2004/04/advertising_and.html
Lastly, thanks to friend of the show and There Inc.’s very own Mr January Bruce Boston for picking up on this one.
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