It’s no secret that video games represent a potentially powerful marketing channel. The twin consumer trends of skipping TV ads with TiVo and spending more time in 3D virtual worlds have many marketers considering product placement in video games. Studies suggest that well-designed placements in games are more effective than placements on television or in films because, in a game’s immersive environment, players can interact with the products they see.

A version of this article appeared in the December 2006 issue of Harvard Business Review.