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Video Game Publisher Electronic Arts Signs Video Game Ad Deals

Electronic Arts (EA) has announced that it has struck deals with two in-game advertising providers, taking its first steps into the online advertising business.

Earlier this year Microsoft acquired New York-based Massive in a deal valued between USD 200 million and USD 400 million, leaving Double Fusion as one of the largest independent in-game ad companies in the field.

EA said that it would include up to four video games. The first of those will be 'Need for Speed: Carbon,' the latest iteration of its popular racing series due in late October.

Privately held IGA Worldwide will also deliver advertising in up to three EA games, starting with 'Battlefield 2142,' a futuristic combat game slated for release in mid-October.

"You'll see more agreements like this with other titles in the future," said Chip Lange, EA's vice president of online commerce, adding that the company plans to negotiate with all providers of online in-game advertising. "It's too early for us to lock into a single solution," Lange said.

In-game marketing has been emerging for some time as a major new revenue source for the USD 10 billion online and video software industry. Analysts project that it will grow from USD 56 million in 2005 to as much as USD 1.5 billion in 2010.

The industry is no longer just about product placements 'hard coded' into video games. The field is quickly centering on so-called dynamic ads, which can insert new ads into games with online capability, such as PC games and newer console games, that link to the Internet.


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