Massive, the Microsoft unit that specializes in inserting ads in video games, took a hit earlier this year when 28 staffers were let go as part of Microsoft's larger restructuring.

But, according to a blog post from J.J. Richards, general manager of the in-game ad business at Microsoft, things are looking pretty good. Despite what Richards called the "worst economic crises of the last century," the Massive ad business actually saw a double digit increase in revenue last fiscal year. And, Richards writes, things are looking even better so far this year.

"We're seeing light at the end of the tunnel and Massive already exceeded first quarter sales targets by more than 100% just one month into our new fiscal year," said Richards. The ad business also recently booked its 1,000th client campaign.

In the post titled "In-Game Advertising Facts are Stubborn Things," Richards goes on to list five facts about why in-game advertising makes sense. Here are the five:

Fact #1: In-game advertising is thriving.

Fact #2: Gaming connects brands to valuable audiences.

Fact #3: In-game advertising works.

Fact #4: In-game advertising is measurable, inexpensive and easy to do.

Fact #5: Gamers like it.

To get more details on each of the "facts," check out Richards' blog post.

VentureBeat, citing research from Screen Digest, reports that in-game ads will hit $1 billion in sales by 2014 in part because people are spending less time watching TV. And Richards even notes that the recession may be helping to some degree.

"While the recession has impacted new game sales, time spent playing games - and seeing dynamically inserted ads - continues to increase," Richards wrote.

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