Activision CEO Bobby Kotick

Mr Kotick , CEO of Activision, addresses In-Game advertising in a recent analyst call.

From Vedrashko via Seeking Alpha:

“…We look at the amount of hours that are consumed by consumers and let’s take 18 to 35-year-old males in the U.S. in front of a video game screen. So last year that was roughly 30 billion hours. Then you compare that to television watching which was to the same demographic roughly 30 billion hours. There was $8.5 billion spent on television advertising to 18 to 34-year-old males and there was less than $50 million spent in-game advertising last year. So it’s somewhere between $50 million and $8.5 billion.”

“…What we’ve said all along is the biggest limiter right now in establishing a rate card and generating any kind of reasonable revenues is that you don’t have a big enough installed base of next-generation hardware that you can use for measurement purposes. That will not change until you have 20 or 30 million units of always-on Internet capable next-generation consoles in the installed base. So you won’t start to see it have an impact on our business until, let’s say, two or three years from now.”

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About Daniel Davenport

Daniel is a digital media executive with internet and broadcast experience. Daniel is currently the executive strategy director at THINK Interactive.

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