EA Announces No Plans for In-Game Video Ads in Response to Press Reports (Updated)

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EA Announces No Plans for In-Game Video Ads in Response to Press Reports (Updated)

Update: Axios reports that EA recently signed a deal for an in-game advertising system called playerWON, which EA says is not true. The company told PC Gamer that it does not include advertising in its console games and has no such agreement in place.

"In response to erroneous reports that we are looking to introduce 'TV-style' commercials into our games, we want to clarify that in-game advertising for console games is not something we are currently considering or have signed an agreement to implement," an EA spokesperson said. Creating the best possible player experience remains our top priority."

Our original article on the playerWON system is below, with references to EA removed for now. But the case is not closed: why are we hearing differently? Simulmedia states that "we cannot comment on anything related to EA."

Original article A new advertising platform will allow companies to include video ads, like those seen in mobile games and free-to-air TV, in PC and console games, according to an Axios report, named playerWON, owned by Simulmedia. The technology is based on offering in-game items or currency to players who view the ads and is targeted at free-to-play base games.

And it will probably catch on: according to Axios, Simulmedia has already signed a deal with Hi-Rez and is already running a pilot on Smite. According to the report, players during that pilot were "much more likely" to play the game and spend money if they could earn rewards by viewing ads. Although not explicitly stated in the report, it is possible that players could earn in-game currency by surrendering themselves to a 15- or 30-second ad rather than spending actual cash, turning the free-to-play game into a viable video marketing platform.

The company hopes to target a younger demographic (18-34 years old) that is difficult to reach with traditional video marketing. In order to be "rewarded" for watching an ad, they need to watch the ad all the way through. According to Simulmedia's own research, people are willing to watch up to 10 videos a day for a reward.

Simulmedia's Dave Madden notes that 90% of free-to-play viewers do not purchase in-game items, so this is another way to squeeze cash out of them. The company hopes to implement these ads in "roughly a dozen" games by the end of 2021. It's a grim vision for the future of gaming: volunteering to be marketed in your few leisure hours for virtual rewards. Watch a 15-second ad about Cheetos to unlock a Marvel-themed cape in Fortnite. Where's the exit?

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