More Madden! The interview...

Want to learn exactly how Dave Madden is going to change the console/PC gaming world?

Watch this for 8 minutes!

https://www.beet.tv/2020/08/console-games-are-ripe-for-tv-like-ads-simulmedias-dave-madden.html#.Xy1Vmt51VgI.linkedin

Or read this:

LOS ANGELES – TV-like advertising is starting to find a place in video games that people play on consoles like Sony PlayStation and Microsoft’s Xbox as the entertainment software industry undergoes a massive shift in the way games are distributed.

Pioneering the effort to put commercials into video games is Simulmedia, an advertising technology startup whose financial backers include venture capital funds and AT&T’s WarnerMedia. The company recently began testing video ad inserts in console games — one of the last vestiges of ad-free gaming — in a move that could revolutionize the way marketers reach target audiences who are elusive to other media channels like linear TV.

Dave Madden, who used to oversee in-game advertising and brand partnerships for video game giant EA, this summer joined Simulmedia to lead its push into console gaming advertising. In this conversation with Beet.TV, he describes how a growing number of gamers are willing to trade a few seconds of their time to watch a TV commercial for in-game rewards.

“That’s the big opportunity for video game publishers and advertisers to work together,” he said, describing console games as ripe for a more modernized business model that includes advertising. “Games are maybe the largest media format worldwide right now.”

Advertisers including credit-reporting company Experian, Unilever’s Dollar Shave Club and Turner Broadcasting have tested Simulmedia’s platform to connect with target audiences, The Wall Street Journal reported.

‘Scalable Model’ for Advertisers

Traditionally, console games have been ad-free, with video game publishers making almost all their money from sales of compact discs or downloads. As smartphones become gaming devices, video game publishers started to experiment with different revenue models including “freemium” games that were free to download, but charged money for in-game content.

They also started to experiment with ad formats like rewarded video, which asks players to watch a commercial in exchange for rewards like upgrades, vanity items and virtual currencies to help progress more quickly through the game. Simulmedia is bringing that revenue model to console games that are in millions of households.

“The big opportunity and area for brands to participate is building a scalable model around helping unlock all that valuable added content for free in exchange for engaging with a 15- or 30-second ad,” Madden said. Video ads also look much better on a bigger TV screen than on a smartphone, he said.

More than 214 million Americans play video games, and 73% of them own a game console, according to the Entertainment Software Association, a trade group for the gaming industry. Thirty-eight percent of gamers are ages 18-34, compared with about 23% of the general population, making them a key audience for advertisers.

Increasingly, those gamers are playing “live-service games” like “Fortnite,” the multiplayer battle royale game from Epic Games that has 350 million players worldwide. “Fortnite” has experimented with different kinds of advertising including sneak peaks of movies and an award-winning effort by burger chain Wendy’s, whose ad agency VMLY&R created a branded avatar in the game.

With so many people playing video games on consoles, phones, tablets and personal computers, they’re harder to reach through traditional media channels like linear TV — and that’s where Simulmedia sees opportunity.

Opt-In Audience

Simulmedia is mindful of the sensitivities of gamers who don’t want their gameplay to be interrupted with intrusive ads. That’s why its platform only shows ads to audiences who have opted-in to see them. The company found in a survey that 75% of console gamers would be willing to watch commercials in exchange for content.

“The difference with gaming in terms of an advertising medium is that it has to be permission-based,” he said. “If you were to insert an ad into a video game that was interruptive and the player didn’t expect it, by and large you would expect some pretty big backlash from the playing audience.”

He IS the game...

Congratulations to Dave Madden on becoming the undisputed expert and leader of "in game advertising".  He was just poached from EA Sports to lead all in game ad development for Simulmedia.  Incredible stuff! Announced in a post by Simulmedia Founder & CEO...

https://www.simulmedia.com/blog/2020/07/27/video-game-ads-dave-madden/

Simulmedia to Integrate Premium Video Game Ads, Welcomes EA’s Dave Madden to Lead the Efforts

Dave Morgan

Founder & CEO

JUL 27, 2020

Simulmedia is excited to announce a strategic extension of our business and an exciting new hire to lead it. We are augmenting our linear TV ad platform to include the distribution of permissioned, video ads in premium console-driven video games. Dave Madden, EA’s longtime head of in-game advertising and brand partnerships, has joined Simulmedia as EVP/ Games & OTT.

While we have long led the market in providing advertisers with automated, data-driven buying across all of the top 115 national broadcast and cable TV networks in the US, our advertising clients have urged us to deliver performance and reach beyond the audiences that watch linear television. They also want high-reaching video streaming channels to be available on our platform, and premium video gaming represents an enormous opportunity to do just that.

Playing video games is one of the largest and fastest growing media activities for young adults and teens in almost every major market in the world. We know that integrating high quality video advertising into these environments will take a thoughtful approach, a deep understanding of gamer sentiment, and critical technology developments to ensure uncompromising privacy protection, frequency control and trusted audience measurements.

We have spent the past 10-plus years bringing a digital approach to TV advertising to solve similar challenges, and Dave Madden has more experience than any other executive in the world in introducing successful, gamer-friendly ad formats into premium video game environments.

Dave has been pioneering player friendly models for brands to interact with gamers for two decades, first with WildTangent, the company that invented Brand Boost, the “rewarded ad” for games, and then as the head of Electronic Arts advertising/sponsorship and brand partnerships. His teams have built cutting edge partnerships with global brands such as Coca Cola, Gatorade, McDonalds, Unilever, P&G, Adidas and Nike across games including EA Sports, FIFA, Battlefield and The Sims, as well as establishing industry leading eSports sponsorships, including the first ever virtual stadium in competitive gaming for Pizza Hut in the Madden 20 NFL Championship Series.

We believe that this could be a massive market opportunity. John Frelinghuysen of LEK Consulting projects that ads in premium video games could represent a $3-5 billion market in the US in five years.

So, what are we doing?

First, we are spending a lot of time talking and listening to advertisers, publishers, platforms and, most importantly, gamers to understand how to best accomplish the integration of TV advertising and premium video gaming.

Second, we have begun running pilot tests delivering opt-in, rewarded video ads within premium game environments to better understand how gamers will respond to them.

Third, we are working with Nielsen to incorporate their smart TV viewership data into our new metrics as a way to help advertisers and publishers better understand how video game audiences compare to TV.

And fourth, we have begun significant development efforts to build out the needed infrastructure to deliver high value advertising in premium gaming environments and to insure not only the protection of gamer privacy and publisher proprietary data, but to avoid many of the problems of today’s programmatic digital ad ecosystem, including receiving irrelevant, redundant ads, finding yourself retargeted, and turning over delivery decisions to bidders in an auction.

Here are what some of our clients and collaborators are saying:

“Experian is always interested in reaching more new customers in engaging, fun, premium media environments, especially younger audiences that are harder to reach on TV,” said Steve Hartmann, Head of Integrated Marketing at Experian. “We work with Simulmedia to help deliver our television advertising and are looking forward to supporting its new efforts to extend its platform, measurement and distribution to the enormous audiences playing Triple-A video games.”

“An emerging challenge for many advertisers is understanding how their video game audiences compare to those they reach on linear TV,” said Kelly Abcarian, general manager, Advanced Video Advertising, Nielsen. “With the addition of our smart TV viewership data into Simulmedia’s new premium video game ads metrics, we are helping build transparent and robust metrics for one of the media industry’s fastest-growing new markets. With this latest offering, Simulmedia is serving a specific market need by delivering advertisers a new, unique and verified ad inventory that connects with consumers wherever they are consuming content.”

I expect many of you reading may be asking, “When will this in-game inventory be available?” While we’re eager to scale it, for now we’re completely focused on delivering an experience that’s right for gamers, advertisers, studios, publishers and hardware manufacturers. A handful of them already have been working with us for months to help us build something that will work broadly. We’re so grateful for their support and commitment.

Ski season!

Hardie Jackson and Dave Madden were recently able to get in a few runs together in Sun Valley, ID.  Lookin' good fellas!

Weekend in Idaho

Great to see Hardie, Dave, Taylor and John getting some fresh air in Sun Valley, ID.  More likely candidates for the class hike next summer!

Lax Bros

Taylor Watts was in downtown Denver for a lax tournament so I hustled over to Denver University to connect with him.  Both his sons play for 3d Select teams, who train in a Box / Field Hybrid™ Development System that develops skills in both field and box lacrosse.  The system was developed here in colorado but is now nationwide.  Dave Madden has a son playing it in California and so does Dave's older brother Leigh '81, who lives in Virginia.  Small world...

Mini Reunion

Dave Madden and Taylor Watts had their own mini reunion this weekend at the Denver Shootout Lacrosse Tournament!

Dave Madden is a WorldMaker at CES

What the NY Times can learn from online games | VentureBeat

What the NY Times can learn from online games VentureBeat

(Did you ever believe that Dave Madden would be lecturing to the NYT? Love it! Way to go Dave!!!)

What the NY Times can learn from online games

Dave Madden is executive vice president at game company WildTangent.

You’ve probably heard that the New York Times is planning to put up a pay wall next year that will shut off its content to all but paying subscribers. It’s a move the newspaper feels it has to make in order to stay in business. But it’s a move in the wrong direction. Instead the paper should abandon the notion of metering and instead look to the booming online video game business for its inspiration.

Online gaming companies learned long ago that the best way to make money is to shoot for the largest possible audience by eliminating subscription walls. You make the game completely free, get as many players hooked as possible, and then monetize those players through the sale of virtual goods and advertising revenues from brand advertisers. In Asia, game based virtual goods purchases surpassed $4 billion in 2009. In the US, where the business is more nascent, purchases are expected to hit $1.6 billion in 2010. Examples of runaway successes abound. In the month of January, there were 17 different games that all garnered audiences of over 10 million monthly active users on Facebook. The largest, Farmville, with 75 million, was launched just six months ago.

The huge difference between the NYT metered approach and the “Free to Play” gaming model is that, in gaming, users can decide how many virtual goods they want to buy and how they pay for them. No matter what the volume or the payment method, they’re never turned away. The NYT’s metered model is instead an all or nothing approach — you either pay the full subscription price, regardless of what parts of the site you want access to, or you don’t get in at all. The net result will be that the paper will lose readers it could have kept and monetized by other means.
In the short run, the NYT metering plan may mean an initial burst of subscription revenue. But, over time, its daily unique user count will dwindle as users seek out news from other sources with less friction, leading to a downward spiral in ad revenues that will more than offset the subscription gains. That means fewer resources to produce the paper and the website, rendering the online and print subscriptions less and less valuable over time.

Then again, perhaps the paper could take a lesson from online games and roll out a “Free to Read” model supported by digital currency.

A digital currency option – similar to the online games model — would allow the NYT to monetize the 95-99% of readers who are inevitably not willing or able to buy a monthly or annual online subscription. By deploying a digital currency model and creating a per visit and a per premium article price, the NYT can establish a perceived monetary value for its premium news content. Just like in online games, readers will be able to purchase that digital currency in a variety of ways, including virtual currency cards that are sold in retailers nationwide, along with online purchases via credit card. A digital currency approach would allow the Times to keep the a la carte price of a premium article or feature reasonable to the interested reader.

With the barrier to entry and risk level lower than an all-or-nothing subscription, the percent of readers using real currency would be larger. All told, a standard subscription model combined with a digital currency option would monetize approximately 15 to 20% of the total audience. So what about the remaining 80 to 85% of NYT readers who won’t buy a subscription or pay per article?

Because this currency solution would effectively establish a monetary value for NYT content, a value exchange advertising model could then flourish; just as it is doing now in the online games industry.

Readers would be presented with the option of paying for an individual visit or premium article using their digital currency, or they could choose to “earn” the same NYT content compliments of an advertising sponsor in return for viewing an ad on the way into the story. This perceived exchange of value between the NYT reader and the advertiser would create a means through which all NYT readers could be monetized.

In a digital currency world, the publisher is equally happy to have the user pay with coins or by viewing an ad from a sponsor. The revenue lines are about equal, and most importantly, the publisher is not turning anyone away. Advertisers love this model, as engagement levels are higher and consumers associate the brands with adding value to their media experience.

Dave Madden is executive vice president of games media company WildTangent, which operates a fast-growing online games service and the largest game ad network in the world. He also serves on the board of directors of the IAB and is its Games Committee co-chair. WildTangent is pioneering the move to value exchange advertising in the online games space through its unique BrandBoost™ platform for advertiser sponsored game sessions and virtual goods.

WildTangent Takes on Social Gaming via Madden

WildTangent Takes on Social Gaming

Hopefully the MediaWeek piece today on Dave Madden's employer (with a quote from our man) will link up -here's the text too - Nice work Dave!

WildTangent, which has built a sizable footprint in the casual game space, is making a push into the exploding world of social games with the introduction of BrandBoost, an ad offering via which advertisers can subsidize virtual goods.BrandBoost employs a tactic similar to what WildTangent has used for several years in casual games—where brands often provide free game play to users who are willing to watch a particular ad. In this case, the value exchange is for virtual items that are common to social games—i.e. weapons, power boosts or other virtual items designed to enhance game play. WildTangent has begun rolling out the BrandBoost ad placements on Sony Online Entertainment’s Free Realms games, as well as the sites Outspark.com, and OMGPOP.com. But the company is planning to announce an additional distribution deal with a major social gaming company in the coming weeks, according to Dave Madden, the firm's executive vp. Players, when visiting these games’ built-in virtual goods menus, have the option of paying for select items with real money and can select a "free” advertiser-sponsored item. In exchange, those users (who do not pay) must watch a video ad, such as the trailer for the upcoming adventure movie Percy Jackson & the Olympians: The Lightning Thief, a debut BrandBoost advertiser.Madden called WildTangent’s "ads in exchange for games/goods" tactic as “themost effective in-game ad model in the business,” because users understand up front that they are receiving something of value—and their gaming experience isn’t being interrupted.
And for developers, BrandBoost, this model helps them not only monetize their games, but also get people used to the idea of virtual good—and hopefully convert more players to paying customers. “This is an example of premium content being given out in small doses,” he said. “Game companies can dangle free stuff to get people to become buyers.”WildTangent’s core business remains distributing games on PCs (including 75 million sold globally last year) and on gaming Web properties. With BrandBoost, the hope is to conquer social gaming, which carries massive potential. “The scale of gaming on social sites is enormous,” Madden said.