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That
leads me to ask one thing I was going to get to. How do you figure out how much
people are willing to sit through or tolerate for ads in the games space?
NB: We really don't have a clue right now.
We know that... what we're giving them, there's not a lot of pushback. In fact,
I would say a lot of people are really happy to watch the ads as opposed to
having to download [a game].
So we're clearly not there. We've not gone
past one 30 second spot interstitially, and at the beginning and the end. If
you go to the television model where you're stacking up ten 30 second spots in
between, I don't think we could ever get there, nor do we need to.
What
do you think of advergames, versus in-game advertising?
NB: I think both are very... well, I think
advergames are very, very powerful. They're costly, they're nichey, but I think
they're certainly strong. I think it's harder to weave in your message in an
advergame as much as where you say, "Okay, now here's the message."
Now, we can be consistent on that, instead of pushing it in. Sometimes, the
advergames are a little bit constrained, or a little bit trite, I think. But I
think as they become more important, they'll get better. I don't count them out
at all. I think advergames make sense.
TL: Obviously, the up-front costs and the
commitment is on a much different plane.
And
also they have a tendency to be really, really bad, right now.
NB: (laughter) Exactly! I was going to say
that, but... (laughter) You hit the nail on the head.
TL: Put it this way. I did PR 25 years ago,
and we did Twinkies. David Letterman would've done it if he could jump into a
vat of Twinkies filling. [Our client] said, "No way." You walk much
finer lines with an advergame and what you can do with it, versus the ability
to...you're now talking about the demographic with casual games, and fitting
advertising with a much wider demographic than you are from the other side of
the equation.
Pretty
much every casual game company I've talked to has said that they know their
market is bigger and wider, but they don't know exactly who they are. How do
you target these? It would be great to say, "Okay, the 40 to 50-year-old
women. We're going to sell this product."
NB: We actually do.
TL: You have to keep in mind... think of it
as yes, we've got great technology, and we're combining with the gaming genre,
but this is all taking place on the internet, so you have the benefits of what
the internet provides from a marketing standpoint. So geo coding... somebody
comes in and says, "I only want to reach people in the blank zip code
region." The Bay Area, as an example. You're able to do that. You're also
able to look at the behavioral components from where the people are coming
from, whether it be portal or ISP, in not necessarily tracking technologies,
but in targeting technologies that are out there today.
NB: We need to target by zip code, which
gives us a hell of a lot of knowledge about household income, size of
household, ethnicity... there's a lot of stuff statistically that we know.
TL: Keep in mind, remember that if you take
a 30-minute television show, you've got eight minutes of commercials, but six
of those minutes are national, which means that you might get an ad that that
retailer or manufacturer doesn't even sell within three states. We never have
to worry about that for our advertisers and from an advertising perspective.
Right.
But you can't get age and gender without a credit card or something like that.
NB: No, but there are some ways. We don't
get it now, but we will. At uWink we know exactly who's there, so we really
understand how many people are playing what, because we see them with our own
eyes.
TL: For example, if you go to Yahoo! and
you play a casual game and it's got our ads in it, we're going to know all the
demographic and psychographic information that Yahoo! has in their data
analytics.
Same thing as if somebody came to... let's
just take... Joe's Website, and Joe's Website is targeting 18-34 year old men,
for example. Or Sue's Website, 25 to 54 year old women. We're going to know
what door they're coming through to play that game.
So it's not as big of a stretch or a leap
to say that we don't know the answer, because the answer is that we pretty much
do know who they are, and we'll be testing different things such as... click
what your demographic is before you even go to the download, and be able to
serve up the right ad based on that demographic. So it's not as big of a leap
as one might think, from a targeting standpoint.
Whenever
anyone asks me to choose my age, I always choose the oldest one possible, so
that would yield some interesting ad results.
TL: Might be! (laughter)
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Even if it was impossible to reproduce the whole program and make it not require a license, it is still quite possible to trick the program into thinking it is got a license. One could think of countless ways, at the end of the day, Treacherous computing only limits the box in which the program is running, but it won't really have a way to know the signals it is getting from what it thinks is the server are legit. You could just get a router that fakes the ip/dns giberish from the site.
Even if you truly had a way to 'secure' a system against it, you'll certainly have the graphics, the music, the data, the scripts. Reproducing the engine is actually a doable thing, there are countless of clones out there.
I wonder though, if this madness really gets to work Like Bushnel is predicting, what prevents the Chinese from making their own games? Or their own computers without these issues? I think underestimating them is not a great idea.