The move, if it goes ahead, sees Google spread the wings of its advertising operation beyond the web to interactive entertainment – it is expected that those booking advertising through Google's web service could opt to have their ads appear in games.
WSJ points out that the purchase would be another step in the rivalry between the internet search firm and Microsoft, which purchased in-game ad company Massive last year for around $200m.
Although marketing in game worlds is still a new market, it already has a number of other key players, including IGA and Double Fusion.
In the report a Google spokesman declined to comment on Adscape but commented: "We are always considering new ways to extend Google's advertising program to benefit our users, advertisers and publishers. In-game advertising offers one such possible extension among many others."