When players think of in-game ads, they probably imagine something like a billboard—two dimensional, non-interactive and probably unmoving. It can convey a company's message to be sure, but its number of uses in the game environment is limited.

With that in mind, Double Fusion last week formed a strategic alliance with Vykarian. The independent in-game advertising company will leverage the 3D game art production studio to help take their in-game ads into the third dimension. "3D ads put advertisers in the game," said Jonathan Epstein, president and CEO of Double Fusion, in a release. "Until now, most advertisers haven't had direct experience in creating 3D ads. Our partnership with Vykarian creates a turnkey pathway for the smart marketers who want to take advantage of this high-impact approach, supported by the best creative talent in the business."

"3D advertising brings products to life in games," said Vykarian CEO Xin Chung, "but they have to look as good as the games themselves. Producing 3D models that look their best in the new generation of high-definition consoles and PCs requires large-scale technical production capabilities. With Double Fusion we're now able to offer these services to the innovators among in-game advertisers."

GameDaily BIZ caught up with Jonathan Epstein, who explained the deal with Vykarian, how 3D ads blend with a game, and how publishers will benefit.


One of the first questions an outsider to this deal might ask is, "Why Vykarian?" They'd likely follow it up with, "Who is Vykarian?" Vykarian was established in China in 2003 as an outsourcing studio for game art production. They currently produce 3D models and art assets for a majority of the top game publishers, making them a natural choice for this deal with Double Fusion.

"We're been working with Vykarian since E3 on another project, and, based on the quality of their work, have extended the partnership to this broader one," said Epstein. "I've known Vykarian's CEO, Xin Chung, for some years, and am well aware of his previous work in the field. Between his expertise in production outsourcing -- and the creativity that his partner American McGee brings to the mix -- I can think of no better shop to be working with."


Nielsen Interactive recently conducted a study that showed that 3D in-game advertising has far greater recall and impact compared to different formats of advertising. The likely cause of this is that 3D objects can be more readily interacted with when placed in a 3D gaming environment. It's like the difference between a can of Coke you can drink and a can of Coke pictured on the wall.

"People look at 2D objects -- they interact with 3D objects," explained Epstein. "All of the in-game formats offer advertisers tremendous value, and different types of opportunities -- but when you interact with a product, there's just a much higher level of brand communication and impact going down."

"3D ads can be environmental -- in the game world and movable -- and they can also be integrated more directly in the gameplay, combining the product placement and media paradigms," he continued. "For example, all the cars you see parked on the street in a game could be served as ads, and changed with every scene (as, in fact, you might expect the cars to change in real life) to other models or makes. The mobile phone in the protagonist's hands -- which, if sold currently, is fixed for the life of the game -- this phone can now be a different phone, from country to country, or the model can change when the manufacturer releases their new models. 3D ad serving allows inventory items to be advertisements -- really, the creative potential is unlimited."


As outlined by the examples above, 3D ads can greatly expand the possibilities for in-game advertisers. Whereas before, ads might be limited to simple pictures in the background, as 3D objects they can become items in the foreground, interacted with and seamlessly integrated into the gameplay. And with Vykarian's VYKnet system ensuring that the 3D models created meet the approval standards of the game publisher and the advertising agency, it's sure to bring realism in games up another notch.

"Publishers that want the ability to generate the highest revenues from advertisers per unit of ad space in their game [will be attracted to in-game 3D ads]. 3D does more, and is worth more, than other formats," said Epstein. "Of course, it's essential, as with any in-game advertising, that the ads work well within the game design, the game play, and the game environment -- that is always the baseline."

"Products you handle work the best -- the mobile phones, the cars, clothing, MP3 players, and the like -- but the creative applications are boundless," he added.

Finally we asked Epstein about the upcoming Bad Day LA, which is being made by American McGee in partnership with Vykarian and will feature ads by Double Fusion. One would think it would make a natural showcase for 3D in-game ads, but such will apparently not be the case. "We defer to the publisher's decisions in terms of which types of ads to include or not include, and in the case of Bad Day LA, the publisher preferred to stick with 2D signs, which are displayed prominently throughout the game world. Some of our upcoming 2006 sports titles will feature 3D ads, as will most of the titles we will be releasing in 2007. In terms of sponsors, buy the game and see!"