
Gaming giant EA have reportedly signed exclusive advertising deals with IGA and Massive to deliver dynamic advertisements directly into gamers’ virtual environments.
EA are stating that the move is to keep advertisements within games “fresh and relevant for gamers”, although obviously this is about EA getting more money from their games, with game production costs very high. With games for ‘next generation’ consoles costing a lot more than their current-gen peers, with Microsoft particularly needing to reclaim the losses they make on selling the Xbox 360 hardware, EA are obviously looking for some way to get more money into the game development without further pushing up retail prices.
Another issue here is piracy. EA (and its rivals) lose a lot of money to game piracy, but EA will presumably still have in-game advertising revenue as a sort of ‘damage limitation’ with this new deal.
Advertising in video games isn’t new. Product placement occurs already in many popular series. Take Splinter Cell, for example, which is published by Ubisoft (EA aren’t alone in picking up on in-game advertising). The second game in the series Pandora Tomorrow and its sequel Chaos Theory featured obvious product placement - from the Sony Ericcson mobile phones to Airwaves chewing gum appearing in-game and in movie sequences.
What’s different with this move by EA is that the advertising is dynamic - your new EA game will contact IGA and/or Massive via the internet and download new ads and then place them in game. Presumably the ad agencies will get data back from gamers showing which ads have been seen, for how long, and will help advertisers target the market.
Dynamic in-game advertising hasn’t seen a wide take-up until now. One notable exception is SWAT 4, published by Vivendi. A patch for the game introduced ‘dynamic’ advertising from Massive, and there’s an interesting deconstruction of what data passed between the game and the advertisers at this site. Interestingly, the patch only displayed ads for US gamers; the UK version of the game still fed data back to the advertising company, but didn’t display any ads.
There is an enormous untapped advertising market for video games. Games are big business and from SWAT 4’s example, it would be possible to target people in a particular market with different products. It might even happen that gamers become ‘profiled’ and the advertisers then target gamers according to what times they are online, for example.
This is certainly going to be important for the video game market in the future, and with heavyweight EA taking up the offer - it won’t be long before most, if not all, video games feature ‘dynamic’ advertising.