Game-based marketing

Game based marketing is the type of marketing where the marketers will use games to market their product or services. It is relatively a new type of marketing where the marketers will not only use for in-game ads for promotion, but also they use it for selling their products or services i.e. final purchase. Game-based marketing can be implemented in 2D, 3D and 4D video games. Major reasons why marketers use game-based marketing is that they believe that the user engagement is high. In-game advertising in this case, becomes a part of game-based marketing.
Purpose
Game-based marketing is primarily used by marketers to generate awareness and to target a particular group. For example, if the marketer wants to promote sports equipment, then they can advertise in games based on sports like Football, basketball and so on.
In-Game Purchases
The marketers will try to sell their in-game products through their games. For example, the marketers will entice the user to buy a particular 'advanced' product for a given price which will help them to progress in that particular game further or they can use that product to cross the level very easily. This can be in the form of in-app purchases.

Examples
Contests
One of the major forms of game based marketing is contests. Marketers use contests in games to promote their product. For example, if the user wins a game, attractive prizes are given to the user by the marketers.
Freemium and free-to-play
Freemium and free-to-play games are typically playable online and provide a free basic game with options for players to purchase advanced features or additional items. They operate under the theory that a gamer will pay for additional in-game features after investing enough time in the game. In freemium games like Farmville, these transactions are typically one-time payments for specific in-game goods (micro-transactions). Free-to-play games like Age of Conan instead try to induce players to enter into a pay-to-play relationship for premium content. While typically generating income though these other revenue sources, freemium and free-to-play games often feature advertisements as well via splash advertisements or advertiser sponsorships of virtual-good giveaways as additional income.
Pay-to-play
Pay-to-play games charge players to access the game content. Depending on the game environment, some pay-to-play games feature IGA. For example, City of Heroes and Anarchy Online both use dynamic IGA in an urban game setting to mimic real world stimuli. In contrast, fantasy games such as EverQuest II and World of Warcraft may not include IGA when real-world advertisements do not fit contextually. Blizzard has previously remarked that it would not consider using IGA within World of Warcraft; conversely, SOE experimented briefly with an in-game command-line function allowing players to order food delivery from Pizza Hut in EverQuest II.
Virtual worlds and MMORPGs may host persistent online advertisements by allowing marketers to purchase virtual real estate. Aside from establishing a brand presence, companies can use it to test future real-world locations. For example, Starwood Hotels & Resorts Worldwide established the aloft hotels within Second Life prior to the completion of its real-world counterpart.
 
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