Google plays new ad games

Seeing a lucrative untapped advertising market in free Flash-based online games, Google publicly launched the beta of its AdSense for Games, a tool that lets advertisers insert ads either within the games themselves or after they've played. So now, rather than missing out on the lucrative Flash gaming market--which boasts roughly 200 million games played each month--Google and its advertisers can target those users, many of whom would rather play an online game than watch TV.

The new tool is based on technology Google snapped up with its $23 million purchase of AdScape in 2007. To keep things simple, Google is initially targeting free Flash-based games, which run in a Web browser and require no downloads. To better explain how it works, Google provides this video of ads placed within the popular Word Challenge game by Playfish.

The tool is available only in the U.S., and participating game developers and publishers include Konami, Playfish, Zynga, Demand Media, games network Mochi Media, as well as beta advertisers such as Esurance, Sprint and Sony Pictures. According to the Google news release announcing the beta: "Advertisers are charged on a cost-per-impression or cost-per-click basis, and ad revenue is split between Google and game developers or publishers."

The new tool promises to be a decent revenue-generator for Google. Online games are among the fastest growing segment of online content, and Google looks like its making a serious ad play for the market.