Top Story

Home >> Digital >> Article

iZone International: In-game advertising on the way out, says EA exec

22-December-2010
Font Size   16
iZone International: In-game advertising on the way out, says EA exec

Electronic Arts (EA), who were originally the pioneers of in-game advertising, displaying billboards by paying advertisers inside their sports videogames, and sometimes, more egregiously, in settings where it wasn’t very appropriate, but today, EA’s General Manager of Free to Play, Ben Cousins, told Edge magazine in an interview that the model was on its way out and that microtransactions were where the money really lay.

Cousins told Edge: “We actually aren’t getting much from ad revenue at all. The in-game advertising business hasn’t grown as fast as people expected it to.”

One of the most successful examples of leveraging microtransactions is the social gaming empire of Zynga, which built a multi-million dollar business from the Facebook game ‘Farmville’, and even today owns seven of the 10 most played games on Facebook. Speaking to exchange4media earlier, Zynga India Country Manager Shan Kadavil had said, “Zynga games are popular with people across multiple platforms, with 320 million people having played Zynga games to date. At any point in the day, four of your friends will be playing a Zynga game.”

While advertising in social media games is an upcoming trend and could help build a lot of attachment to brands and reach out to people in a way that integrates into the overall experience, this is still a reasonably new phenomenon. Zynga’s main revenues still come from people who use real world money to buy in-game money to buy virtual goods. You can do the same things without spending money, but it takes time and effort, while paying costs very little. However, all these microtransactions add up to a very large amount of money.

Though less than 10 per cent of the people playing actually pay anything, the people who pay, in cents instead of dollars, account for millions in revenues, and the total value of virtual goods transactions across different games and platforms for the various companies in the market is now over $7 billion in 2010, according to a study by ResearchandMarkets.com.

Cousins told Edge: “If you think about how fast the virtual goods business has grown in the last year or so, it’s been much quicker and become a much more reliable source of revenue.”

 

Chief Content Officer, Eros Group, on Eros Now's first original comedy series, reception to its short form content and code to crack original content strategy

The new Head of Office for FCB Ulka Bengaluru on her vision for the agency, her role in shaping brands over 16 years, and why it is important to have fun in advertising

Strategy Head, Zirca Digital Solutions listed out key aspects of a good content marketing strategy and performance indicators for successful campaign

Richard Ingleton, Group CEO, Kantar Insights, says it is not right to associate market research with just survey

right
left
ADVERTISING INDUSTRY GATHERS TO HEAR RAJAN ANANDAN AT AAAI SUBHAS GHOSAL MEMORIAL LECTURE BW BUSINESSWORLD MARKETING WHITEBOOK SEES KEY MARKETING LEADERS AT LAUNCH IN BENGALURU MINDSHARE BAGS TOP HONOURS @INDIAN CONTENT MARKETING AWARDS 2018 REALTY+ ORGANISES ITS 10TH CONCLAVE & EXCELLENCE AWARDS WPP CELEBRATES WINNERS OF BRANDZ 75 MOST VALUABLE INDIAN BRANDS IN MUMBAI MATHRUBHUMI LAUNCHES NEW VENTURE WITH MATHRUBHUMI MEDIA SCHOOL MULLEN LOWE LINTAS GROUP, OGILVY DOMINATE IAA AWARDS FOR CREATIVE EXCELLENCE THE AD CLUB RECOGNIZES INDUSTRY-LEADING BRANDS AT MARQUEES 2018 IN MUMBAI VIACOM18 SHOWCASES ITS NEW MULTI-LINGUAL WEBSERIES, THE VOOT ORIGINALS @MUMBAI EXPERTS PICK THE BEST OF CONTENT MARKETING AT JURY MEET FOR ICMA 2018 RAJDEEP SARDESAI LAUNCHES NEW BOOK ‘TRACKING INDIA IN THE MODI ERA’ AT DELHI CHLOROPHYLL ENTERS ITS 20TH YEAR CELEBRATING WITH FRIENDS AND ASSOCIATES INDUSTRY VETERANS ADDRESS ATTENDEES AT THE INMA SOUTH ASIA MEDIA FESTIVAL @DELHI RADIO CITY RECOGNIZES BUSINESS ICONS AT DELHI ICON AWARDS 2018 KARAN THAPAR & SHEKHAR GUPTA DISCUSS JOURNALISTIC ETHICS AT THE PRINT’S ‘OFF THE CUFF’ WOMEN ECONOMIC FORUM AWARDS 2018 RECOGNIZE WOMEN LEADERS OF THE DECADE THE 6TH EDITION OF IAA AWARDS RECOGNIZES THE WORK OF INDUSTRY PROFESSIONALS 11 INDUSTRY EXPERTS PRESENT  THEIR FAVOURITE DIGITAL CASE STUDIES @AD CLUB’S ‘D-CODE BUSINESSWORLD LAUNCHES 14TH EDITION OF MARKETING WHITEBOOK IN MUMBAI INDUSTRY VETERANS CHEER AS ADMAN AMBI PARAMESWARAN LAUNCHES NEW BOOK SPONG

FabAlley digital campaign features fashion influencers proclaiming the bold message of believing in being just fab, irrespective of one’s size, shape, height or weight

The Mirzya fame actor will endorse the entire range comprising Lip, Eye, Face and Nail colours

SBI Life Insurance's ‘Main se Hum’ campaign establishes a sharp focus on the company’s portfolio of protection products