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A fictional example is Pepsi banners lining the inside of a virtual Soccer stadium in a video game made by EA Sports. A final (but weak) example is a regular banner-ad in a free small-time browser strategy game. The actual effectiveness of this method is unknown because it is pretty new.
However, it can be a way to combat costs that the game makers encounter and reduce the cost of the game to the consumer (especially games with monthly fees) while providing an outlet to advertise one's product.

Changing Business Environment & the Need to shift from Traditional Advertising

With TIVO (TIVO is a device that allows TV viewers to skip commercial), tele-zappers, etc., having already made an entry to the market, the tension gripping the marketers is increasing. Already much of hand-wringing and gnashing is going about TIVO but the fact is that TIVO is catching up the sensation and certain to erode marketers of advertisers. Tele-zappers and caller-id are also here to make the companies run for their life for making the consumer watch their commercials. These devices are blocking the most effective communication medium, advertisements, to reach the concerned target audience. In fast paced life no one wants to go through the droll of advertisements after a hard day's work, and therefore, the consumers are moving towards such devices as TIVO and tele-zappers. Therefore, the changing role of the consumer from a passive observer to an active player in the marketing process needs to be explored, in particular, in relation to attracting them to online games, and holding and rewarding them for their attention.

Advantages of Advergaming

Unlike TV advertising, where the consumer has the option of zipping and zapping and also of engaging in other activites, advergaming requires the complete concentration of consumers. Most of the netizens, while engaged in a gaming session, prefer to concentrate on the task at hand and generally do not indulge in chatting online.

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* Contributed by -
Manisha Singh,
PGP - II,
XIM Bhubaneswar.