Carmakers and Their New Routes to Market

By: Zain Nabi  |   August 24th, 2013   |   Games

Video game fans have played racing games a number of times on their Xbox or Playstation. Racing games are always a source of interest and for developing car games attract younger consumers who are tomorrow’s car buyers.

 

There are many who are not being able to afford cars, for them Volkswagen’s Audi recently sponsored a car game by which the players can win brand loyalty for future. Also, the company is well aware that the racing games are not only for the young generation.

 

“It’s not just about reaching the youth – an Audi in a video game also reaches our core target group. Unlike in a movie where there is a straight narrative, a video game is interactive and the storyline is not defined in advance,” said Kai Mensing, head of International Product Placement at the company, via Reuters.

 

On the other hand, Nissan has launched a new game as a partner in Sony’s rival PlayStation game “Gran Turismo”, by which the gamers can get a chance to drive a real 370Z sports car on Britain’s Silverstone circuit.

 

“We take you all the way through to being a racing driver,” said Gareth Dunsmore, general manager for marketing in Europe, adding that it’s “GT Academy” finalist Lucas Ordonez went on to a real world podium finish at the Le Mans 24 hour race in 2011.

 

Nissan has made huge investment in digital advertising in the last five years and also this year it is expected to remain on top by spending $500 million, which is 25% of the overall advertising expense of the company.

 

“GT Academy is a great way for us to attract the gaming community to the brand. A million people have experienced this year driving an electric vehicle in a game,” Dunsmore said.

 

The $2.8 billion industry worldwide has spent this year on the advertisement of in-game, Consultancy PricewaterhouseCoopers said. Product placement in films is much cheaper than this amount, said carmakers. Also, they need to collect licensing fees so that the game developers can handle over their vehicle specifications.

 

Carmakers need to pay more than a million dollars if the game developers use any of their cars into a storyline of a video game, said Games industry analyst Brian Blau of Gartner, who once worked on licensing deals with carmakers. Advertisement is one of the most important factors in these kinds of immersive technologies, he said and carmakers need to fulfill the demands of younger players.

 

Image: Wallfive