Analyst: Google's games ads 'timely shot in the arm'

Speaking on his blog, industry commentator Nicholas Lovell commented: "Given that video advertising is the sector that is still holding up in these trouble times, this is a timely shot in the arm for the finances of the casual/free games sector."

We details Google's new in-game ad effort here.

Lovell also points out that gamers are likely to appreciate the in-game ads and not find them intrusive.

"My feeling is that not only will this approach generate higher click-through and engagement rates, users will support it. I think that it will feel 'fair' to watch a 15 second ad after 2-4 minutes of high-quality gameplay," he said.

Casual games companies will likewise get a boost, he said.

"Around the industry, I hear that entertainment-led video ads are generating CPMs of anywhere from £10-£30. If a casual games business can maintain ad rates at this high level, the kind of level usually reserved for targeted, aspirational websites, that will change their business very substantially for the better."