Rob Wright: What about the nature of games compared to videos? How do advertisers see the differences between the two?

Dave Williams: I think the interactivity of games is very valuable to advertisers. Adver-games have become very popular, so we know that you can make great games and effective branding experiences at the same time. Redline Rumble is the most popular game on Shockwave.com right now, and that title started as an adver-game for Radio Shack. It's no longer sponsored anymore, but it's the same game.

Rob Wright: Are consumers bothered by the growing presence of ads in the game experience?

Dave Williams: Consumers aren't really bothered by ads; they have to recognize that if they're going to get good content, then it has to be paid for somehow. So the trend is going to continue. Now, not every game is built to carry advertising, and the moment it intrudes on the game experience, you have a serious problem. I think seeing a high level of advertising is natural for people today. We can argue whether that's a good thing or a bad thing for society, but that's the way it is today.

Redline Rumble

Rob Wright: What's the biggest draw right now for Atom?

Dave Williams: Shockwave.com is far and away our biggest site. It pulls in 25 million unique visitors a month, while AddictingGames.com gets about 9 million visitors a month. So games, obviously, are the most popular type of content, but video and short films are growing.

Rob Wright: What do you see happening in the future with online and casual games?

Dave Williams: Well, there are hundreds of people creating online games every day, from college students to major game developers, so there's a flood of content out there. These range from deeper strategy games and longer MMOs to humor games like Dick Cheney's Duck Hunt. I think we'll continue to see a ton of games coming out as more people play online.