Q&A: Double Fusion CEO Geoff Graber

Earlier this week, in-game ad facilitor Double Fusion annouced it had hired Yahoo Games general manager Geoff Graber away from that search-and-content powerhouse to be its new CEO. GameSpot caught up with Graber shortly after the news was announced.

GameSpot: Geoff, just as Yahoo seems to have gone into overdirve with new initiatives, you decide to disengage and align with Double Fusion. What's the lure of going with an unproven startup?

Geoff Graber: The lure of joining Double Fusion was the chance to take the experience that I have developed from my time at Yahoo!, EA, and throughout my career, and bring it to one of the leading companies in an incredibly promising industry. We have only just begun to scratch the surface of the in-game advertising market, and Double Fusion is well positioned to succeed. To have an opportunity to take the helm of a company that will define this market was too tempting to pass up.

GS: As CEO, what do you see as your most pressing mandate?

GG: Double Fusion has been built, not like a 1990s Internet company or like others in our industry, but rather in a way that has made it scalable and sustainable. The technology is cutting-edge, the research has been completed. So my role, plainly said, will be to grow the company. The immediate opportunity here is with US-based game publishers/developers and advertisers, but given my experience in China, a move into the Far East shouldn't be far off.

Advertisers are just beginning to understand the value of in-game advertising. If we are smart, aggressive, and keep on the pressure, this is a good opportunity for growth over the next months and years.

GS: Double Fusion has often ended up in the shadow of other companies intent on owning the in-game ad space. What differentiates the Double Fusion solution from others in the space?

GG: There are two main things that differentiate Double Fusion from its competition. First, our technology is far superior to anything else on the market. The Double Fusion offering was well developed, researched, tested, and proven. Our solution can handle rich media, including 3D objects, which have proven to be much more appealing to gamers than static advertisements. Second, our business model is more sustainable. We work with advertising agencies, not in competition with them. We help bring their clients to the video game market. Double Fusion didn't rush to the market. Instead they built it for the long-term.

GS: There have been plenty of big numbers bandied about as to how big, revenue-wise, the in-game ad space is. Where do you see the business model standing this very moment? How significant of an initiative is it really for publishers today?

GG: Double Fusion's business model is the right one for this industry. As we've seen, publishing-developing costs for new games continue to become more expensive, and finding new, predictable revenue streams is becoming more and more important. On one hand, in-game advertising meets the revenue needs of publishers. On the other, in-game advertising is meeting the needs of advertisers to find alternative venues for marketing to the all-important 18- to 34-year-old male demographic.

Are the predictions of scale and scope of the industry correct? We feel that gaming and associated advertising should grow at least as fast as what the "experts" predict.

GS: Again, picking up chatter among industry players, how do you/Double Fusion address concerns of developers that their games and stories are being co-opted by marketers?

GG: Gamers are looking for the most realistic gaming experience possible. Advertising, correctly inserted and incorporated into the game environment, is how this industry can make sure we don't anger the gamers. Double Fusion won't insert a movie for Deuce Bigelow into a medieval-themed game. It just won't happen with us. We know what gamers want, we know what publishers want, and we know what advertisers want. They really want the right product placements in the right situations. That is what Double Fusion delivers.

It might be somewhat premature to claim that video games have been co-opted by marketers looking to find another avenue to reach would-be consumers, but in reality, that is not the case. As Double Fusion continues to sign up new games, we plan to do so responsibly. The last thing we would want is to have advertisements alienate gamers to the point that they don't want to play the game. When done appropriately, our ads can only enhance the gaming experience, while balancing the needs of advertising partners.

GS: Regarding the $10 million cash infusion... How do you plan on using the additional funding?

GG: We plan to use the new funding to help grow the business, particularly in helping to set up new operations in the United States, add head-count, and to develop our sales and marketing force.

GS: Also, can you briefly comment on the current partner list of Double Fusion? Who are you working with? And on which games?

GG: So far, we have tested and worked with primarily European games/game developers, such as Data Design Interactive, Team6-Games, and Metro 3D Europe. As we continue to grow, we will be announcing future partnerships with larger global game publishers.

GS: Following up on a previous question: How do you see the next year panning out for in-game ad facilitators such as Double Fusion? A year of wild growth, one that will require more evangelizing and sowing of seeds? The breakout year, maybe, for the business model?

GG: With the launch of the next-generation consoles, such as the Xbox 360 and the PS3, it will help the in-game advertising industry take an even more prominent role in the video game publishing business. Double Fusion has the foresight to create an adaptable technology that can be modified for today's PC and consoles games. With more options becoming available for gamers in the next year, and as the industry continues to mature, we feel that the biggest days for in-game advertising are just on the horizon.

GS: Why was San Francisco picked as the new headquarters for the company?

GG: I think few would argue that the capital for the video game industry in the US is the San Francisco Bay Area. For us to grow and expand our partnership roster, it makes sense for us to set up shop in the area of the country with the most innovative companies in the business.

GS: Thanks, Geoff