Posted April 26, 2006 2:24 pm by with 0 comments

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If Google can get into Radio ads, Microsoft can get into video game ads. According to Reuters, MSFT plans to pay $200 million to $400 million for Massive Inc., a privately held company that places ads in video games.

Clients of Massive, which uses always-on Internet connections to place real-time ads in games, include Coca-Cola Co. , Honda Motor Co. Ltd. and other advertisers that are boosting spending for ads in video games.

The in-game ad industry is expected to grow to $3 billion by 2010. Neither side is confirming the deal, but I think it’s a great move by Microsoft who can combine this with their Xbox products.

As a search engine, given a choice between a radio ad network of in-game ads, I’d put my money on the video games.

Hat-tip to the ‘shifters.