PRICE Marketing designed for the
interactive generation Outside the Box
INSIDE THIS ISSUE: Intro ï Guest Column ï Ask The Expert ï The Top 20 Videogames
Joe Cerbo
April, 2005
15 Years And We're Only Just Beginning
It's hard to believe that 15 years ago this month, our CEO, Tracy Price, opened up shop not far from where we are today in downtown Palo Alto.

PRICE was one of the very first agencies to specialize in marketing and design for the video games industry and, 15 years later, we're still here working with many of the same clients with whom we started.

As we continue down the road, we look forward to all of the new marketing and design challenges that come with bringing a product to consumers. Much has changed since 1990. The marketing of games has become much more sophisticated. For that reason, instead of just designing the packaging and print ads like in the early days, PRICE is now positioned to offer full campaign strategy, implementation, and management.

This month, we bring you two talented individuals who are truly on the cutting-edge of game marketing and technology.

Tom Ellsworth, the chief strategy officer for GoTV Networks, lays out a step-by-step plan for helping your company create a better agency relationship. And Nicholas Longano, the chief marketing officer for Massive Incorporated answers the big question "Are in-game ads a viable advertising option?"

We hope you enjoy this month's issue of "Outside The Box!"

Until next time ...

Joe Cerbo
President
PRICE

Jane doe
Help Me Help You
-- By Thomas N. Ellsworth, GoTV Networks
The success of your agency depends on you!

If you want your agency to "get it" -- to understand what it is you're looking for, it's worth taking the time to start off with a pitch of your own. Says Thomas Ellsworth, chief strategy officer of GoTV Networks, don't expect your agency to be a mind reader.

Do you remember the scene in the movie "Jerry Maguire" when sports agent Jerry Maguire (Tom Cruise) stands in the locker room pleading with pro football player Rod Tidwell (Cuba Gooding Jr.)? In order for Jerry to help Rod get a new contract, Jerry needs Rod to cooperate -- and help himself in the process.

There's a lesson there for professional marketers and their agency partners. That's your agency desperately pleading "Help me help you!"

Step back and be brutally honest for a moment. Do you really help your agency (especially new ones) succeed? Or do you expect them to be mind readers? Be careful with your answer.

If you or your team waits until the creative comes in to provide feedback in the form of detailed information about your product, competitors, and distribution partners, then you are expecting the agency to be a mind reader. Hammering the account rep and spewing red ink all over the creative is not how to convey the nuances about the project and get a quality result.

Let me take creative license and edit a very appropriate saying I once heard: "The amount of time spent characterizing a marketing project is inversely related to the amount of time you will spend on the creative revisions."

I learned this lesson early in my career and have worked to help my team avoid making this mistake. I'd rather get three dynamite creative approaches for a given project rather than running out of time and having to "live with" only one. When it goes that way, the client and the agency are usually tired, frustrated, and only moderately happy with the results.

That said, here's my approach to award projects to new marketing agencies or select agencies for a more intricate, ongoing AOR (retainer-based) relationship:

Click here for complete article.

Ask The Expert
Send your marketing-related questions to our experts.

Q: Are in-game ads a viable advertising option -- and why?

A: Nicholas Longano, chief marketing officer at Manhattan-based Massive Inc., a facilitator of in-game advertising, responds: "Absolutely, especially because it is a win-win-win for all parties involved
-- the game publisher/developer, the advertiser, and the gamer.

"Every entertainment medium has multiple revenue streams but, until now, video games have had only one -- retail sales. The limitation and reliance on those first six weeks of retail sales has ironically turned the 'hit-driven' video game business into an industry that's become 'risk averse,' relying almost exclusively on sequels and licenses, in an industry that requires some element of investment in new and innovative ideas.

"I believe that in-game advertising is about to change all that and, ultimately, publishers and developers alike will be able to enjoy the benefits of a significant new source of revenue which will also benefit the gaming consumer.

"In addition, in-game advertising is appreciated by gamers because it adds to the realism of the gameplay experience. It adds authenticity to cityscapes, sporting stadiums, anywhere that you'd expect to see an advertised product in a modern day or futuristic setting. In a recent study on gamer attitudes to in-game advertising, over 90% of gamers reported they did not mind in-game advertising as long as that advertising fit the game and was contextually relevant. Indeed, contextual relevance is key -- we ought not to see a can of a popular beverage in Middle Earth or a poster for a new movie release in a Dungeons & Dragons game.

"For advertisers, in-game advertising represents a new generation of advertising that connects them with the lifestyle of the elusive 18-34-year-old male audience. This demographic is spending less time than ever before on passive entertainment such as television. During primetime, they're spending up to 13 hours a week playing video games versus 6 to 7 hours watching TV, according to Nielsen Entertainment."

NPD
Group
The Top 20 Videogames: February 2005
An Analyst's Thoughts On How Creative Marketing Led To Their Success

Billy Pidgeon, founder and senior analyst with Manhattan-based Go Play Research, weighs in exclusively for "Outside The Box" readers on some of the marketing strategies that shot Gran Turismo 4 right to the top of NPD's Top 20 Videogame List in February, the Sony PS2 racing game's first month of release. At the same time, EA's NBA Street V3, Nintendo's Zelda: The Minish Cap, and Capcom's Resident Evil 4 jumped to spots 2, 5, and 8, respectively.

Long-term coverage and jaw-dropping gameplay footage ratcheted up a frenzy of anticipation for SCEA's PS2 killer app Gran Turismo 4. GT4 hit the road in the final week of February, grabbing top position with over 600,000 units blown out in less than a week. The media blitz of TV ads and spots -- including a marketing challenge from The Donald to contestants on TV's The Apprentice (the episode appeared in GT4's release week) -- as well as online, major retailer circulars, and POP displays, was nearly unnecessary as GT4 had most gamers at "available" or before with presells.

EA's NBA Street V3 hit the two (PS2) and six (Xbox) spots of NPD's Top 20 List with coverage of new features, such as slam-dunk contests, online play, customizable elements, and unlockable celebrity characters, including the Beastie Boys. Top reviews and blanket marketing for the EA Sports BIG label added momentum to the title.

Nintendo and Capcom kept platform exclusives Zelda: The Minish Cap (GBA) and Resident Evil 4 (Game Cube) in the top 10 with TV, print, and online ads supported by outstanding critical reviews.


TOP 20 VIDEO GAME TITLES
RANKED BY TOTAL U.S. UNITS
February, 2005

Last Month Rank Title Platform Publisher Release Date ARP
** 1 GRAN TURISMO 4 PS2 SONY FEB '05 $49
** 2 NBA STREET V3 PS2 ELECTRONIC ARTS FEB '05 $49
2 3 GRAND THEFT AUTO: SAN ANDREAS PS2 TAKE TWO INTERACTIVE OCT '04 $48
** 4 MVP BASEBALL 2005 PS2 ELECTRONIC ARTS FEB '05 $30
3 5 ZELDA: THE MINISH CAP GBA NINTENDO OF AMERICA JAN '05 $30
** 6 NBA STREET V3 XBX ELECTRONIC ARTS FEB '05 $49
5 7 MERCENARIES PS2 LUCASARTS JAN '05 $50
1 8 RESIDENT EVIL 4 GCN CAPCOM USA JAN '05 $50
** 9 CHAMPIONS: RETURN TO ARMS PS2 SONY ONLINE ENT. FEB '05 $49
8 10 MADDEN NFL 2005* PS2 ELECTRONIC ARTS AUG '04 $29
10 11 SUPER MARIO 64 DS NDS NINTENDO OF AMERICA NOV '04 $30
4 12 MERCENARIES XBX LUCASARTS JAN '05 $50
** 13 XENOSAGA EPISODE II PS2 NAMCO FEB '05 $49
12 14 NBA LIVE 2005 PS2 ELECTRONIC ARTS SEP '04 $30
** 15 STAR FOX: ASSAULT GCN NINTENDO OF AMERICA FEB '05 $49
** 16 WARIOWARE: TOUCHED! NDS NINTENDO OF AMERICA FEB '05 $35
** 17 MVP BASEBALL 2005 XBX ELECTRONIC ARTS FEB '05 $30
7 18 HALO 2* XBX MICROSOFT NOV '04 $48
16 19 WORLD CHAMP POKER PS2 CRAVE ENTERTAINMENT NOV '04 $20
6 20 NEED FOR SPEED: UNDERGROUND 2 PS2 ELECTRONIC ARTS NOV '04 $50
* Includes Limited & Collector's Editions
** Not in Top 20 in previous month

Source: The NPD Group / NPD Funworld / Point-of-Sale
David Riley 516-625-2277




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