The current study examines how advertising in video games are received by players and spectators. To test how the design of the advertisement affects the player/spectator, respondents were exposed to different types of advertising. The results showed no significant differences between players and spectators, however, the brands with high relevance to the game resulted in a higher ad recognition. It was also found that passive advertising has the greatest effect on the spectator and the active advertising yielded higher ad recognition of the player.

The results of the study give researchers and marketers insight into important consequences, as well as comparative data for future research to explore consumer perceptions of brands in a virtual environment. The study also presents the potential of video games as a marketing and communication tool.