Google said Thursday it is testing ways to deliver ads in computer games but declined to comment on the Internet buzz that it will be in the market by year's end.
"We think this rich environment is a perfect medium to deliver relevant, targeted advertising that ultimately benefits the user, the video game publisher and the advertiser," the Internet colossus said in a written response to an AFP query.
"We are currently in tests to determine the best approach to in-game advertising."
Google, the undisputed king of Internet search advertising, has been using portions of its wealth to expand its realm into newspaper, radio, "smart" phones, and video games.
Google bought in-game advertising firm AdScape for 23 million dollars in February.
Advertising in video games is considered a powerful marketing tool because messages can be tailored to precise demographic groups and players focus intensely on game scenes, remembering what they see there.
A player of a shooter game could be scouring a virtual cafeteria for enemies and find one hiding behind a vending machine emblazoned with soda or candy brands.
Billboards featured along streets in racing games could bear real advertising geared to car lovers.
As video games are played on consoles or computers linked to the Internet, ads can be routinely updated. It is essential, according to game makers, that ads cause no disruption to play.
"We are working with publishers to help advertisers reach their target audiences while maintaining a high quality, engaging user experience," Google said.
While Google declined to reveal specific in-game ad plans, website GigaOm contends the California firm will launch a version of its ad platform with a computer game next month.
PlayStation video game consoles maker Sony last month created a unit devoted to developing "dynamic" in-game advertising that can be modified via the Internet.
Microsoft bought in-game ad firm Massive last year and sells in-game advertising through the Xbox Live platform that connects online to the US technology firms video game consoles.
Video game console makers Nintendo, Sony, and Microsoft have control over the delivery of advertising to games played on their hardware.
