Google Talks AdSense to Games

Earlier this month, we reported that had Google launched "Lively", its own browser-based virtual world. This seems to be the search giants' initial foray into the booming gaming segment, where Google virtually had no presence.

Well, looks like that will change soon, as initial reports indicate that Google has been quietly testing its "AdSense for Games" product for months. This according to sources is an in-game advertising technology that allows it to insert video ads into games. In demos of the technology, a game character can introduce a video ad, saying something like, "And now, a word from our sponsor". Google could launch the technology fairly sometime soon, since testing has been going on for a while now. Given that Google has been working on AdSense for Games since 2007, it's unclear why they haven't yet taken the plunge into the lucrative gaming pool. The gaming pool is occupied by established players like Double Fusion, IGA Worldwide, Microsoft's Massive, MochiMedia and NeoEdge Networks. Perhaps Google is waiting for some really innovative ideas to stir up the competition.

The Yankee Group predicts the gaming ad market will be worth $971.3 million by 2011. Google's top executives know that search advertising may not last forever, and in-game advertising could become a compelling technology over time as both games and in-game ad technology become more and more engaging.