Sony has announced the introduction of dynamic in-game advertising on the PlayStation 3.

The company has partnered with in-game advertising company IGA Worldwide to serve ads in games on the PS3 platform.

Analyst firm Yankee Group reported recently that the worldwide in-game advertising industry is expected to be worth around $971.3m by 2011.

"Ads that are organic to the environment not only benefit developers and advertisers, but create a richer experience for gamers," said Phil Rosenberg, senior vice president of Sony Computer Entertainment America.

Justin Townsend, chief executive at IGA Worldwide, added: "Through this partnership with Sony, IGA can provide advertisers with a large and valuable global user base of 16-35 year-old consumers with disposable income.

"With our standardised awareness-building advertising formats delivered directly into people's living rooms while they play, there are great opportunities for advertisers to engage through an entertainment medium outside the traditional TV spot."

On the same day as Sony's announcement, Microsoft subsidiary Massive released research into the brand impact of dynamic in-game advertising.

The study claims to demonstrate that the gaming audience has a consistently positive opinion of the ads and how they affect the gaming experience.

Around 70 per cent of gamers agreed that dynamic in-game ads 'contributed to realism', 'fit the games' in which they were served and 'looked cool'.

"As the in-game medium matures and establishes its position, advertisers and agencies are eager for insight into creative nuances and best practices for maximising its impact," said Cory Van Arsdale, chief executive at Massive.

"We view this type of guidance as an essential part of our role as an industry leader and innovator."