How do you monetize a huge volume of users that aren’t in the mood for seeing or interacting with ads? Ask Google. They announced earlier today that they’ll start running ads with flash games. It’s an attempt to copy/past the success of AdSense in a market undervalued by larger players.

What this deal is really about is testing passive and unengaged traffic.  Everyone interacts with web properties hosting games, funny videos and entertainment. But this traffic is not actively seeking information to make a decision. They’re simply screwing around, taking a break, playing with friends or relaxing.  Traffic volumes for passive traffic like this is decent when compared to a high volume news sites like the NY Times:

The big question is how to monetize this traffic. Higher numbers often indicate a higher chance for monetization.  Companies like Digg (valued at $40M) have the investment behind it - but results still need to be proven.  The same can be said for the other web 2.0 models like social networks and photo websites that draw massive amounts of untargeted traffic and investment - but shy away from boosting revenue figures.  These sites are cool, but I won’t believe they are an effective business model until I see the money line in action.

Another issues is how ad placement will be achieved. In the worse case scenario, ads will be placed in a seemingly disruptive way - totally distracting happy flash gamers playing their favorite free games.  Arrington gave us excellent example pointing to the tasteless ad display in movies like Idiocracy and 1990s old school style websites. Let’s hope it won’t be something like this:

Can you imagine ads being implemented in your favorite game - popping out of no where or as, characters, objectives and other in-game tactics!?

I believe there is a business behind passive traffic like flash games and other entertainment sites.  The numbers are there but the engagement is not.  On the bright side this deal will be good for everyone: Google will invest a few zillions to attract, test and monetize.  If and once the results are successful, smaller time media companies have room to move in.

In the mean time I doubt Raft War players are going to bite anytime soon :)

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