In-Game Media, which Chan joins as CEO, has been set up to address the increasing branding opportunities offered by online games. Backed by mainland gaming giant Shanda Interactive, the company has finalised its management line-up, and has unveiled a proprietary technological system that allows ad-serving within games on a real-time, geographical basis.
“Historically, there has been a primitive form of advertising in gaming,” said Chan, who departs Burnett China after five years in charge (Media, 25 July). “But we can serve ads into the game in real time, and different ads according to different geographies. We can also track how many users are truly exposed to the inserted ads.”
The management line-up sees Chan joined by former ZenithMedia Shanghai GM Alan Yau, who will head media. Johan Wong, founder of Hong Kong interactive agency iThink, joins as strategic planning director, while former Electronic Arts China SVP Huang Wei arrives to oversee operations. “This is not just for Shanda’s games,” said Chan. “We need to develop relationships with every game developer and then we also need to talk to advertisers to increase interest in this medium.”
Chan is also hoping that his new agency will be able to provide more than just gaming services, and is eyeing project sponsorships and off- and online integration as other areas that are ripe for growth.
“Advertisers have already identified this as an exciting and targeted medium, but no one to date has been able to come up with the technological solution that we possess,” said Chan. “We want to combine that with communications planning.”
China’s gaming sector is dominated by Shanda, NetEase and The9, who together account for approximately 60 per cent of the nearly Rmb 6 billion (US$797 million) market. Shanda recaptured top spot in the market this year after switching from a fee-based model to a free-to-play one in late 2005.
The decision to switch to a free model is believed to be linked to an increasing focus on in-game advertising. NetEase and The9, however, continue to charge subscription fees.
