Microsoft’s Massive Extends Deal For Ad Space on EA Online Games

The Microsoft Corp. subsidiary will announce it has brokered a landmark multiyear deal with Electronics Arts Inc., the world's largest video game producer, to sell rotating ad space in EA's online games. The move not only provides Massive's network with long-term stability, but legitimizes the in-game advertising industry in the eyes of the marketing world. “This is a great deal for us and a great deal for the industry," said Massive chief executive officer Cory Van Arsdale. Massive's technology allows marketers to stream current and constantly updated ads directly into video games played online, either on the Xbox 360 console or a PC. That means that while playing a hockey game online, the banners on the boards around the rink could display a Ford Motor Co. ad in the first period and a Rogers Communications Inc. graphic in the second period. Gme developers effectively build blank spots into their titles so that Massive can stream ads into those spaces over the Internet. The company also works with marketers to design ads that resonate with gamers inside the virtual worlds of video games. While the market for in-game console advertising was estimated to be worth only about $12-million (U.S.) in North America in 2007, within three years that number is expected to reach nearly $650-million as more gamers go online, said IDC video game market analyst Billy Pidgeon.
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