Double Fusion acquisition a possibility, says Euro MD
Following Microsoft's Massive deal and Google's Adscape swoop, Double Fusion boss Frank Sagnier has suggested that the in-game ads specialist could also be acquired in the near future.
Newly appointed European MD of Double Fusion, Frank Sagnier, has told GamesIndustry.biz that an acquisition of the in-game advertising specialist may happen in the near future.
Last year Microsoft bought in-game ads firm Massive Inc for USD 400m, and only last month Google finalised the acquisition of start-up Adscape Media.
When asked if an acquisition is also likely for Double Fusion Sagnier replied, "Yes, but I don't know whether it would happen in 12 months, 18 or 24.
"Clearly this is a business that is so prone to growth that big companies - and you've seen it with Microsoft and Google - would be very happy to get their hands on such a growing segment."
Sagnier believes that the market for in-game advertising is only really accessible to large media firms if they buy into a specialist company, rather than building their own division from scratch.
"It's a very difficult market to start in unless you're a specialist who understands the games industry," he offered.
"Bigger companies do not want to spend the resources, time and effort in a niche market until it becomes bigger, and by then it's too late. Therefore they buy."
Sagnier recently worked for Electronic Arts, where he held online publishing and marketing roles looking after key franchises such as The Sims, FIFA and Harry Potter.
"I've spent the last ten years being part of a company that has helped get videogames from a niche to the mass market. Now I want to spend the next couple of years making games credible to the media industry," he said of his new position at Double Fusion.
"That would be a key achievement, to build this absolutely amazing medium that advertisers and brands understand so much better than they do now."
But Sagnier is aware that in-game advertising is an unfamiliar channel for advertisers, and so extra effort will be required to convince leading global brands of its viability.
"It's going to take time and education because it's such a different medium and as we know with in-game advertising, we have to have full brand integration with technology and creativity," he said.
"There's a need for more maturity - like anything that's new, people are nervous of it. Companies don't have any plans for in-game advertising because it's so new to them. When yearly budgets are being decided, in-game advertising isn't part of it. It's going to be a long process."
With its new European division, Double Fusion is confident of building a network of developers and publishers to convince more brands that in-game advertising is a market worth budgeting for.
"We want to secure as much relevant real estate as possible," Sagnier confirmed. "We will build channels, and with those networks we'll be able to offer them to the big brands. The larger the network, the more appealing you are to a brand."