In-game advertising may be a hot topic these days, but branding in video games must be done with caution and foresight, media and gaming experts said today in a panel discussion at Marketing Week.

"It has to be organic and seamless," said Jeffrey Dickstein, digital advertising sales director for video game designer Ubisoft, which integrated a Dyson vacuum into a CSI game, targeting women over 35 who were avid fans of the TV show.

However, Ron Bertram, vice-president and general manager of Nintendo Canada, said his company was "agnostic" about in-game advertising because products would not always mesh with many of the fantasy or sci-fi worlds. The industry is booming with annual revenues approaching $1.8 billion, he said. Nintendo does not need sponsorships from advertisers to develop its products and many branded games are sub-par and receive no attention, he added.

"You have to get value for the content created," he said. "To fill a game with ads to get it out there for free is not the way to go for software publishers. It's a slippery slope."

For the best chance at success, the panel advised marketers to get in on popular gaming franchises early, develop multiple marketing platforms and to consider either dynamic marketing or in-game product placement.

"It's a lottery to buy into a game before it goes to market," said Nick Barbuto, Cossette's director of digital solutions. "Dynamic marketing is cheaper than fixed and allows you to geo-target."

The panelists also discussed how the industry is targeting a wider range of players including women, seniors and traditional non-gamers, which will eventually open up more product placement possibilities.

Marketers could also expect to see new opportunities in web-based games with heavy female-based usage, portable devices, and mobile gaming.