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Roman Sandoval
January 6, 2019
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The True Cost of Product Placement

We are constantly asked about the cost of product placement in the world of video games, but product placement and in-game advertising cannot be measured with traditional engagement metrics like CPM because the engagement with the user is very different. This is why we use a time-based model and our clients pay for hours of engagement measured in Cost Per Hour (CPH). This tells you how much your firm is paying per hour of engagement with the designated audience. The higher the CPH, the more your firm will be paying for engagement with the consumer. Traditional CPH in the industry ranges from $0.60 to $11.00.

Next we are going to analyze the CPH for different marketing channels (from cheapest to most expensive):

1) Product Placement in Video Games: Immersely is the leader in this space, and the average campaign cost is around $0.30/hour/user.

2) European TV: Using the latest MediaSet pricing document, we can see that an average 30 second commercial in prime time costs $25,000. The average viewership of primetime is 2,597,000 people (source here). Overall, that gives a price per hour per user during primetime TV of $1.15/hour/user. During non-prime time, we can see that the number is reduced by 50% to $0.58/hour/user.

3) US TV: Using data from adAge and Nielsen, we can see that a 30-sec commercial during the 5th season of “The Walking Dead” cost $400,000 with an average viewership of 16M. This means the average CPH is $3/hour/user(2x European Price); The “Big Bang’s Theory” was $2.5/hour/user making the average cost in US TV $2/hour/user (source Statista).

4) Youtube: Assuming CPV (cost per view) of $0.044 (source here) for a 30-second ad that translates to an average of $5.28/hour/user per hour of brand engagement per customer. This number is similar to the General Video ads using the proper IAB definition.

5) General Video: The IAB declares something an impression if it has been viewed for at least 2 seconds on at least in 50% of the screen. Assuming an average CPM of $3 the cost per hour of engagement per user is $5.40/hour/user

6) Facebook: Facebook considers an impression as content just being on the screen regardless of how long it is there. Assuming the ad is on the screen for 1 second and an average CPM of $3, the cost per hour of engagement per user is $10.80.

Therefore, we can see the cheapest form of brand engagement is video games, while the most expensive is Facebook ads, which are 36x more expensive than Immersely in terms of the time of brand engagement per user.

How do you track viewability?

Our technology measures the impact of any object in a game every microsecond. For instance, in this case, we are measuring the impact of a billboard (2D) and a car (3D).

 

 

On the left, we can see how the user sees the game and on the right screen, we can see how our system looks at the game. We are able to capture 2D objects like Flags or Billboards and 3D objects like cars. We measure this impact factor every microsecond, and we report this back to the brand. We can also analyze this number based on different user profiles (GDPR compliant), to tell the brand which types of users have had a higher brand impact.

If you want to learn more, send me an email at roman@immersely.io and I will be happy to talk to you.

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