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Video game advertising tops $1 billion

The videogame world has a long way to go to catch up with the television advertising market, but it has hit a notable milestone. For-sale

DFC Intelligence reports U.S. advertisers spent over $1 billion in 2010 on video games, a number that’s expected to double by 2014. Globally, that number hit $3.1 billion, with expectations it will reach $7.2 billion by 2014.

The numbers include a variety of advertising vehicles: in-game ads, around game ads (such as on Web-based titles) and advergames (popular online and in the app store). In-game ads are seen as the weakest of the three areas. By 2016, advergames and around game advertising will account for 78 percent of game advertising revenue.

But DFC maintains the overall spend numbers by advertisers should actually be higher, given the worldwide spend on the gaming industry, which is expected to hit $67 billion this year.

“Video games have reached beyond adolescent males into a mainstream entertainment medium that touches every segment of the population,” said DFC analyst Michael Goodman. “Despite this, advertisers continue to under utilize video games as an advertising vehicle. This is slowly changing as more games go online.”

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