Los Angeles - Google (NASD: GOOG) plans to launch an in-game advertising network later this month, following its acquisition of in-game ad firm AdScape earlier this year, GigaOM reported, citing sources familiar with the plans.

A beta test featuring 15-second video ads will launch on some of casual games publisher Bunchball Games' titles, followed by the release of an ad-supported version of the PC game "Psychonauts," reports GigaOM.

Rival Microsoft also entered the in-game ad sector with its May 2006 acquisition of Massive Inc.; other competition in the space includes Double Fusion, IGA Worldwide and NeoEdge Networks.

Spending on in-game advertising is expected to grow to $732 million by 2010, according to market research firm Yankee Group.

Related Links:
http://gigaom.com/2007/11/07/google-games-adsense

http://www.bunchball.com