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I just read this article @ gamasutra; Sony, Activision Skeptical Of In-Game Ad Potential[^]. And I just have make a comment about In-Game Ads(Mostly ranting, not really related to the article;)) …
I have always been pro In-Game ads(dodges the incoming rotten eggs & tomatoes). A lot of peeps don’t really share that view with me. But bear with me..
What I mean with In-Game ads is not ads for “Always Coca-Cola” on the loading screen, or a Huge Ronald McDonald in the background of every splash screen in the game.
My idea of In-Game ads is to incorporate them just like real life ads. On billboards, TVs, public transportation, tagging etc.
I know what most of you will say to this.. “But that don’t fit in my new innovative fantasy game, Lobster of the Kings!!” And I agree… It could work if you were selective with your ads and managed to incorporate some of it into your fantasy world. E.g. In the faraway land of Nike, they make these incredible magic shoes that make you run faster and longer!!
But then you would have to customize your whole game after ads.. It could work for a little while, but then peeps will be very tired of the magical Nike shoes shoving up in ALL fantasy games in the future.
I guess in fantasy the best option is to put it on a flash screen while the game is loading or something.. Or just scrap that Tolkien-clone#999999999999 and make a Sci-Fi or something new instead 
Anyways.. Kybernesis will focus mainly on making Sci-Fi games set in a dystopic Cyberpunk setting. And in this kind of setting, billboards and other kinds of ads are perfect!
Imagine walking around in a Cyberpunk world with huge animated billboards showing ads about Coca-cola or McDonalds. And shortly after you actually see a Coke machine or a McDonalds Restaurant which you can actually interact with. Buying yourself a coke or a burger.
Now that’s what I want with In-Game Ads. And it wouldn’t break any illusions or immersiveness on the players part at all!!
It’s kind of Google AdSense. You can customize the ads so it will fit your website, why not do the same with In-Game ads?
So as I said earlier… I don’t think the In-Game Ads idea should be scrapped, as long as you include into your game cleverly, instead of making it an annoyance!
[...] Original post by Ronny Anderssen [...]
I agree.
The point is in-game sds must be designed for the game.
Certainly, this is most effortlessly done in a modern or scifi setting, but it could be done in a humorous fantasy setting as well. World of Warcraft, had it not been based on an already established setting through the warcraft strategy games, is a world that easily could incorporate the dwarven breweries of Coca Cola potion. Sure, it makes me cringe, but would it really degrade the setting? Or could it add flavour? ho-hum.
If such a company invested enough, it could have its own questgivers, like the brewery master wanting people to find a rare type of coca leaf, per example. …As long as it’s a fun mission and not a grind with random drops. Bah. It has to be rewarding and fun.