Google has agreed to buy Adscape Media, a developer of in-game advertising, for $23m.

Adscape's technology could help Google place advertisements on virtual billboards in popular online games. The company claims that gamers "consider real-world ads in games as an enhancement to the realism of game play".

Adscape’s website says that it’s been accepted that "video games is a legitimate and growing advertising vehicle", particularly as gamers are receptive to advertising while playing games due to its "engaging" and "interactive" environment.

The companies were rumoured to be in discussions last month. Although the deal has been signed, it is not completely closed and the executive team will remain together until the end of March.

Microsoft also entered the game advertising market when it acquired in-game ad provider, Massive, for between $200m and $400m last year.