Massive unveils interactive in-game ads

Massive, which creates advertisements that appear within video games, has announced the formation of a new unit that specializes in interactive product placement. Toyota Motor Sales is the first company to sign onto the new ad system. Its 2007 Yaris will be featured in a series of ads appearing first in Funcom's multiplayer game "Anarchy Online." Eventually, the interactive ads will be integrated into other games that implement advertising from Massive, which has been a Microsoft subsidiary since May.

In-game advertising is a growing phenomenon--in June, a study by Parks Associates estimated that it will be a $400 million market by 2009.