Imagine playing your favorite game, only to be interrupted by an ad for a product you didn’t ask for—how far is too far when it comes to advertising in games? Electronic Arts (EA), the company behind popular game franchises like Dragon Age and Madden NFL, is considering integrating dynamic ad insertion (DAI) into its AAA games to boost revenue. During a Q4 earnings call, EA CEO Andrew Wilson revealed that these plans are “still early on that front,” and they “have teams internally in the company right now looking at how do we do very thoughtful implementations inside our game experiences.”
What is Dynamic Ad Insertion?
Dynamic ad insertion (DAI) is a technology that allows ads to be integrated into video content in real time. Unlike static ads—embedded into the content and unchangeable—DAI pulls ads from an ad server and can switch them out based on viewer data. These ads are typically personalized, meaning they vary depending on who is watching.
In other forms of media, like sports game broadcasts, a DAI system might show different ads to viewers based on their location or interests. A viewer in New York could see an ad for a local restaurant, while someone in California might get an ad for a new tech gadget. The goal? To make ads more relevant and engaging to the viewer.
In gaming, DAI could take this further. Ads might appear on billboards in a racing game, seamlessly blending into the virtual world. But is this the future gamers want?
EA’s History with In-game Monetization
EA’s consideration of DAI comes on the heels of several monetization controversies. One of the most infamous was the backlash surrounding microtransactions in Star Wars Battlefront II, where players were outraged over the “pay-to-win” mechanics. The outrage was so intense that it forced EA to publicly adjust the game’s monetization model. This history raises the question: Can EA introduce DAI without alienating its audience once again?
The Downside of In-game Advertising
To deliver targeted ads, DAI relies heavily on tracking user data. This data collection isn’t limited to simple demographics; it can extend to in-game behavior, purchase history, and even data from other games. By analyzing and compiling this data, advertisers can build detailed profiles of gamers, allowing them to serve ads that match each player’s preferences.
For example, players who frequently customize their characters might be targeted with ads for clothing brands or cosmetic items, while those racing down virtual tracks could see ads for car manufacturers on loading screens or in-game billboards.
While targeted advertising is designed to enhance relevance, it also raises significant privacy concerns. Gamers may find this level of data tracking intrusive, worrying about the extent to which their personal information is being monitored, compiled, and potentially sold to third parties. According to a 2022 YouGov study, 47% of gamers express concern about their privacy when using the internet.
Privacy Concerns: How Much is Too Much?
The gaming industry has already seen its fair share of data breaches, deepening skepticism around how personal information is handled. For example, in 2022, major game publisher Bandai Namco suffered a data breach, highlighting the ongoing concerns about privacy and security in the gaming industry. The video game industry as a whole loses an estimated $15 billion annually due to piracy and hacking.
As EA relies more heavily on personal data to serve targeted ads, they risk losing player trust if this data isn’t handled with the utmost care. Data transparency and security will be critical for companies like EA, particularly if ad-targeting becomes more common in AAA titles.
Growing Ad Fatigue
EA’s decision to revisit in-game advertising comes at a time when consumers are experiencing severe ad fatigue. Streaming platforms have increased subscription prices while pushing cheaper, ad-supported tiers. Over on Twitch, streamers are inserting ads mid-stream, alongside hosting sponsored content funded by brands or game developers. On top of that, Twitch itself disrupts streams with random ads, frustrating viewers who feel overwhelmed by constant interruptions.
This growing resistance to ad saturation isn’t limited to streaming platforms. According to a 2023 study from Bango Audiences, two-thirds of consumers say the majority of digital ads they see are irrelevant, with 39% describing them as ‘excessive’. The gaming industry risks a similar backlash if in-game ads interrupt immersion. For developers like EA, the challenge lies in balancing the need for additional revenue with a player experience that keeps gamers engaged—not annoyed.
A Call for Player-Centric Solutions
At the end of the day, prioritizing player experience is essential for long-term success. Gamers want to immerse themselves in breathtaking worlds, captivating stories, and intense gameplay—not be bombarded with ads that interrupt the experience.
There are alternative monetization strategies that have proven successful without jeopardizing immersion. Cosmetic microtransactions, well-developed expansions, or player-supported content (such as battle passes) allow developers to generate revenue without undermining gameplay. Some developers in the mobile gaming space have even experimented with offering ad-free versions for a small fee, which might be an option worth considering for AAA studios.
Gamers can also play a part by supporting studios that prioritize player experience and rejecting games riddled with intrusive ads. As the gaming industry evolves, balancing profitability with player satisfaction is key. Developers should consider not just how they can increase revenue, but how they can preserve the integrity of the games that made them successful in the first place.
Whether in-game advertising becomes a staple in the industry or faces massive pushback remains to be seen, but one thing is clear: this conversation is far from over.
