Feeds

Extraordinary popular delusions and the madness of in-game ads analysts

EA chief questions sanity

The Power of One Brief: Top reasons to choose HP BladeSystem

Many video game industry analysts and corporate star-gazers have extravagant hopes for in-game advertising, but a peek into the horse's mouth would indicate otherwise.

According to Electronic Arts chief John Riccitiello, in-game ads currently account for less than one per cent of EA's revenue - and won't become a key source of revenue for some time.

"You can't be as bullish as analysts are on in-game advertising and be sane," Riccitello told Dow Jones Newswire. "In-game ad expectations are wildly high."

This is notable pessimism from a company with a game ad execution sharing the subtlety and tact of your average chainsaw-wielding maniac.

With a flurry of in-game ad start-up purchases in 2006 from notables such as Microsoft, Google and NBC Universal, the sky has become the limit for market ponderers.

Analysts at Yankee Group predicted in-game ad revenue would jump to $971m in three years. Google's game unit predicted a frothingly mad $1bn in as little as two. Perhaps the lowest figure came from Parks Associates, which forecasts $400m revenues in 2009.

But even for EA, the, ah — (how to put this?) painted Jezebel of the industry, in-game ads took in about $30m for the entire year. That's out of $3.1bn in sales during 2007.

Riccitello's solution: the industry needs to make more room to place ads within games. Oh joy.

He also blames the lack of independent auditors that can monitor and verify how many players are exposed to the the punting. But fear not, Riccitello says the industry has moved to rectify this severe lack of monitoring.

Oh Lord, not even tinfoil can save us now. ®

Using blade systems to cut costs and sharpen efficiencies

More from The Register

next story
Report: American tech firms charge Britons a thumping nationality tax
Without representation, too. Time for a Boston (Lincs) Macbook Party?
iPad? More like iFAD: We reveal why Apple ran off to IBM
But never fear fanbois, you're still lapping up iPhones, Macs
Apple gets patent for WRIST-PUTER: iTime for a smartwatch
It does everything a smartwatch should do ... but Apple owns it
Apple orders huge MOUNTAIN of 80 MILLION 'Air' iPhone 6s
Bigger, harder trouser bulges foretold for fanbois
Child diagnosed as allergic to iPad
Apple's fondleslab is the tablet dermatitis sufferers won't want to take
Microsoft takes on Chromebook with low-cost Windows laptops
Redmond's chief salesman: We're taking 'hard' decisions
For Lenovo US, 8-inch Windows tablets are DEAD – long live 8-inch Windows tablets
Reports it's killing off smaller slabs are greatly exaggerated
prev story

Whitepapers

Seven Steps to Software Security
Seven practical steps you can begin to take today to secure your applications and prevent the damages a successful cyber-attack can cause.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Designing a Defense for Mobile Applications
Learn about the various considerations for defending mobile applications - from the application architecture itself to the myriad testing technologies.
Build a business case: developing custom apps
Learn how to maximize the value of custom applications by accelerating and simplifying their development.
Consolidation: the foundation for IT and business transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.