Due to advancements in technology, advertising has made its way into the world of video games, through what is known as advergaming. The concept is that, if the game is fun, consumers are more likely to remember not just the brand or product itself, but also associate specific brand attributes with that of the game. This article discusses the concept of advergaming and its potential to promote the products and increase sales. It also throws light on the various other aspects of advergaming.

Gone are those days where companies had to struggle to create and print advertisements. Companies are no longer relying on traditional methods of Internet advertising like banners and pop-ups. Companies have started to realize the essence of ongoing customer relationship management and the profits that can be made by maintaining and strengthening the relationship. Of late, companies are using games, particularly computer games or video games to advertise their products. This technique is called advergaming, a term coined by Anthony Giallourakis in January 2000. Later in the year 2001, the same term was used in the Wied's magazine in the `Jargon Watch' column. Since then, advergaming has become popular and has been applied to various free online games which companies use to advertise their brands. Companies have realized the fact that advertising online is cheaper than using traditional media. Advergames can take advantage of the current trend by targeting different customers based on different or specific demographic groups. The companies believe that advergaming is an effective tool to reach the target audience. If the game is fun, the consumer, not only remembers the brand, but also associates the brand attributes with that of the game. A Nielsen Interactive Entertainment research reveals that "pervasive product integration in video games can be highly effective, leading gamers to not only recall featured brands but also recommend them to friends or rate them highly."

In this form of advergaming, companies provide an interactive game in their website to attract customers and hope that they spend extra time on the website. The games developed by the companies feature its product so as to increase awareness about the product among the potential customers. In the earlier days, games were distributed on floppy disks which were distributed free of cost and often packed with information about the companies' products. The goal behind this was to increase awareness about the product and also convey information about any promotional incentives that the company is offering. American Home Foods, Coca-Cola, Samsung, Reebok, General Mills are some companies that used floppy disk for advergames. Taco Bell, the popular restaurant in the US, distributed games as `Kids' premiums'. Some companies have used CD-ROMs to distribute games. For example, General Mills' All-star Baseball used the first CD-ROM to distribute games. With the spread of broadband Internet, the uses of advergames became even more popular.

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