The ASA told OUT-LAW that the adverts are likely to be
considered product placement and not adverts, and therefore not
subject to ASA rules.
Ofcom, which governs product placement on television, told
OUT-LAW that it does not regulate product placement in computer
games.
Electronic Arts has announced that it will increase the amount
and sophistication of advertising within its games. Though
advertising has appeared in video games for more than two decades,
the EA plan involves the live updating of ads via the internet and
a greater use of space within games for advertising.
The games developer says that it will use new technology to
build ads into hoardings, billboards and vehicles that can be
updated over the internet. It will launch the capability in seven
games, it said.
"The situation described would be product placement rather than
advertising," said an ASA spokeswoman. "Ads would be at the
beginning of the game, and we would regulate them."
"At the moment if you get something like that in a TV programme,
such as a lorry with branding on it seen in Coronation Street, that
is regulated by Ofcom," she said. "But if it was something that you
click on and it plays you an advert in a pop up window, we would
regulate that as advertising. Until we see the games, we would not
know for sure if it was something we would regulate or not."
Television regulator Ofcom said that it would not regulate
games. "Product placement means the prominent display of a
brand name on a product used or talked about by a character," said
an Ofcom spokesman. "If this is what you're referring to then
there's currently no regulation that applies, unlike on TV –
certainly not by Ofcom in any case."
EA's move into sophisticated in-game advertising has long been
expected. Market research firm Yankee Group has said that the
market will grow from the current $56 million a year to $732m a
year by 2010. Some industry estimates claim that advertising can
add between $1 and $2 in profits to a game typically costing
$50.
EA said that it would use technology from Microsoft and from IGA
Worldwide to place ads within games. The increasing trend for
gamers to play via online link-ups means that internet updates to
ads are possible on a large scale for the first time.
Nav Sunner, a solicitor specialising in games at Pinsent Masons,
the law firm behind OUT-LAW.COM, said that
"it is important to remember that whilst
in-game ads may not be regulated by Ofcom at present, the content
of such ads would still be subject to voluntary regulation through
PEGI (the Pan European Game Information System). The PEGI age
rating system was established in 2003 and replaced existing
national age rating systems with a single system that is identical
throughout most countries in Europe. It was designed to ensure that
minors are not exposed to games that are unsuitable for their
particular age group by giving parents appropriate information when
purchasing games. The system is supported by the major console
manufacturers, including Sony, Microsoft and Nintendo, as well as
by publishers and developers of interactive games throughout
Europe."
