Product placements in movies have become common and in-game advertising is fast catching up. Products or services are advertised within the storyline of games. As the products being advertised are integrated into the story of the game, the audience does not see the ad as something that hampers the flow, but as a part of the content itself.
For example, Zapak launched a game based on the coaching class IMS (a B School coaching institute for CAT/XAT/MAT”etc). The game, called "Exam Buster" uses the concept of in game avdertising to the point that the game is exclusively designed around IMS.
In the US, the gaming industry is bigger than the Hollywood film industry. Therefore, if properly tapped, in-game product placements can be a big boost of revenue for the industry. Just imagine the number of people reached if all online games had product placements. The games can also be branded around different products. Infact, the recent phenomenon of making online games of the latest movies are more of a marketing effort to market the movie than to earn any revenue from the game itself.