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Media & Money: 'Hurdles' Before In-Game
Ads Catch On
In-game advertising generates revenue in
the 'tens of millions' for EA
Mike Shields
AdWeek
October 15, 2008
NEW YORK The business of advertising in videogames still
faces significant challenges before it can win a sizable
portion of major brands' ad spending, though the growth
of big-budget, Web-based games should help accelerate
the segment's growth, said the leader of one of the
gaming industry's top players.
During a keynote interview today at the Media & Money
Conference here, Electronic Arts CEO John Riccitiello
cited "a number of hurdles" which need to be cleared
before in-game advertising can grow at a faster clip.
Currently, in-game advertising generates revenue in the
"tens of millions" for EA, which according to
Riccitiello is a $5 billion company.
"I've been more bearish than bullish [on in-game
advertising]," Riccitiello said. While he reported that
major brands are attracted to videogames' demographics
and heavy user engagement, to date the medium has yet to
become a staple tactic. "There are hurdles before we get
there," he said. "Those hurdles are not small."
Among the obstacles that Riccitiello listed were the
game industry's complex relationships, which require
in-game ad programs to be approved and implemented by
publishers and multiple distributors, as well as varied
technology platforms, measurement shortfalls, and the
simple fact that gamers typically spend $50 to $60 on
games. "Those all represent an impediment to rapid
growth," he said.
Still, more games are being created to be played via an
Internet connection, which theoretically allows
advertisers more real-time access than games that are
developed with extensive lead times and little
opportunity for sponsors to jump on board once they are
released. Riccitiello said that 2008 would likely be the
last year that EA would produce games that are built to
live "offline only." He cited the recently released
evolution-themed multiplayer game Spore, which allows
users to create elements of the game that can be used by
thousands of players, as well as games played on social
networks like Facebook as examples of the company's
emerging Web-based focus.
As for Google's recent move to extend it's AdSense ad
platform to video games, Riccitiello said he hadn't yet
held any discussions with the search giant about
delivering ads into any EA titles. But he's open to such
talks. "Of course we would partner with them or anybody
who would cut us a check," he said.
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