Microsoft and its videogame ad service Massive are exploring different ways to deliver in-game ads, including during breaks in the game play.  Reported in MediaWeek, the Microsoft is hosting a game ad conference in New York later this week where it s expected to show new partnerships and new methods for in-game ads. One approach the company is touting is combining dynamic in-game banners with advertising through Xbox Live. Car manufacturer Kia recently conducted a campaign where it enlisted Massive to serve dynamic ads into online sessions of Guitar Hero and NBA Live in addition to a branded micro-site within Xbox Live. Microsoft says a study of that campaign revealed that those exposed to in-game and Xbox Live ads were twice as likely to visit a Kia dealership.

MediaWeek says Microsoft is also preparing to show an example of in-game ads that take advantage of existing breaks during game play.  Massive recently struck a deal with Tripwire Interactive to serve ads into the upcoming PC title Killing Floor that takes advantage of the game’s built-in downtime. Read more at MediaWeek.