McDonald's, Intel Entering Virtual World for Ads

1 min read
Opinions expressed by Entrepreneur contributors are their own.

San Jose, California--McDonald's and Intel have signed multimillion-dollar advertising deals to place their burgers, fries and chips within the virtual world of the Sims Online, the highly anticipated Internet sequel to Electronic Arts' social engineering game.

"Product placement is corporations tapping into the borrowed equity of entertainment," said Tera Hanks, a partner in Davie-Brown Entertainment, a marketing firm in Los Angeles. Indeed, product placement is now a $1 billion industry, according to the Entertainment Resources & Marketing Association trade group in Santa Monica, California.

But games have been a laggard. Even though interactive entertainment sales of $9.4 billion approach domestic box office receipts for film, advertisers have been reluctant to associate their brands with the violent fare of bestselling titles like "Grand Theft Auto II."

The fast-food restaurant paid an undisclosed seven-figure amount to allow the avatars who populate the Sims Online to open virtual franchises and earn "Simoleans," the game's currency, by selling burgers and fries to other players. -San Jose Mercury News

More from Entrepreneur

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

Whether you are launching or growing a business, we have all the business tools you need to take your business to the next level, in one place.
Enroll Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

It Started As a Joke and Turned Into a Startup That Raised $1 Million in Funding