Online advertising inside games is on the rise, but here is a mashup of “consumer generated content” with “Gaming ads”.

Game players of Project Entropia can now create their own ads using a kind of powerpoint editing tool. Project Entropia has 400,000 registered users.

Although the ads have so far been promoting player-organized in-game events like fashion shows and hunting competitions, it’s not hard to imagine brands desperate to reach out to a younger audience getting involved.

The challenge as always will be for them to release control of the content to their fans!

via MSNBC