Microsoft has announced it is acquiring in-game advertising company, Massive, in a move that will help deliver dynamic, relevant ads across Microsoft's online services, starting with Xbox Live and MSN Games.

Massive's solution depicts brands in various forms within the game including soft-drink cans and pizza boxes where gamers would expect to see them in real life, adding realism to the overall gaming experience.

Financial details of the acquisition were not disclosed.

"Advertisers are having a tough time connecting with the elusive 18- to 34-year-old male demographic because this group continues to spend less time watching TV and more time playing video games", said Joanne Bradford, corporate vice president of Global Sales and Marketing and chief media revenue officer at Microsoft. "Massive and Microsoft can help lead with our shared vision of delivering more targeted, measurable and effective opportunities for advertisers to reach today's youth audience in a largely untapped market."

According to research by Nielsen Interactive Entertainment, the majority of gamers find that relevant advertising enhances the realism of games.