Dallas - Spending on advertising within video games in the U.S. is projected to grow from $370 million in 2006 to more than $2 billion in 2012, at a faster rate than other media including TV, radio, print and the Internet, according to a report from market research firm Parks Associates.

"Advertising in electronic games had an average monthly household expenditure of less than 50 cents in 2006, while broadcast TV was at $37, meaning advertisers are not using the gaming medium to its full potential," said Yuanzhe (Michael) Cai, director of broadband and gaming at Parks Associates.

The in-game ad format, offered by firms including Microsoft's Massive, IGA Worldwide and Double Fusion, is expected to see the highest growth rate among ad formats, increasing from $55 million in 2006 to $800 million in 2012, when it will account for 84% of the market.

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