Those who view ads in videogames have better brand recall, and sometimes are more likely to favorably change their opinion of a brand, than those who view TV product placements, according to a study released today by Nielsen Interactive Entertainment and videogame publisher Activision, reports the Boston Globe. The study suggest that videogames can persuade like no other media, said Michael Dowling, general manager of Nielsen Interactive Entertainment.

Even luxury brands such as TAG Heuer and Bang & Olufsen have now realized that males 18-34 spend hours playing videogames - instead of watching TV - according to the article.

Costs for advertising in videogames have grown exponentially, ranging from $5,000 to $500,000; those prices rival spots in small films, according to some agencies.

But advertisers think the money's worth it, because the average gamer (for example, like those playing Anarchy Online, the free version of which is attracting 2,000 new users around the world every day) is 29, male, college-educated and spends more than 20 hours a week playing videogames.

In-game advertising is expected to grow eightfold, to $562 million in 2009, and is one of the fastest-growing marketing segments according to Michael Goodman, a Yankee Group videogame analyst.