A Forrester research report on advertising to teens concludes that the best way to reach them is to buy in-game ads or produce "advergames:"
[G]aming presents the best opportunity for marketers who wish to reach this audience. Over 90% own a gaming device, and three-quarters play online and offline games on their PC.
Two main avenues are open for advertising through games: in-game advertising and advergaming. The former is an extension of the product placement common in movies and television, and can range from graphical representation of a product in a game to wholesale sponsorship of a gaming title. With the increase in open-ended gaming that allows a player to wander around a virtual world (such as the Sims or Grand Theft Auto), opportunities for product placement are numerous. Advergaming refers to a game, usually online, that is wholly intended as a promotional device.
I don't know how good or bad this is for gaming, but it's pretty telling when buying ads in a game is smarter than buying ads on TV or product placement in a movie.
(via Wonderland)