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Let the Games Begin Advertising!

Video games are getting down to business.

The practice of using video games as an advertising vehicle is as old as the games industry itself. Early Sega racing games for the Atari 2600 console featured Marlboro display ads on the raceway, and high-profile early-'90s titles such as Zool and the FIFA International series contained ads for Chupa Chups and Adidas, respectively.

But the games are changing. "In-game advertising will evolve in scope and sophistication, offering new platforms for marketers, new business opportunities for technology providers and vital revenue for game developers, who have struggled with the escalating production costs of increasingly complex games," says eMarketer Senior Analyst Paul Verna, the author of the new Video Game Advertising: Getting to the Next Level report. "eMarketer estimates that over the next five years video game advertising will grow at a compound annual growth rate of nearly 23%, reaching nearly $2 billion by 2011."

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