Another big in-game advertising win for IGA Worldwide, which signed an exclusive, multi-year deal to sell in-game ads on Activision’s (ATVI) PS3 games, starting with “Guitar Hero World Tour.” They already had a two-year exclusive deal with EA (ERTS) on the PS3 — which means they’ve wrapped up the two biggest game publishers’ PlayStation games.
This is bad news for rival in-game ad company Double Fusion, which signed a deal to distribute ads on Sony’s (SNE) own PS3 games, and has some smaller publishers on board — but hasn’t been able to attract deals from publishers the size of either EA or Activision.
In-game advertising — like mobile advertising — is seen as a potential growth explosion, but is still mostly hype so far. Worldwide spending for in-game ads is still below $200 million, according to research firm Yankee Group, which expects it to approach $1 billion by 2011. And as AdWeek pointed out earlier this month, that’s a nice number for the video game industry, but still peanuts for the $3 trillion ad industry.