Video games are increasingly going the way of being ad supported. The obvious and established examples of ad supported video games are mobile and casual games. Gamers are widely supportive of ads in these games. In both Waves 3 & 4 of GaMeasure, 85% of respondents indicated a preference for casual games that were provided free with advertising over having to pay for casual games without ads. This shows the importance of presenting respondents with real world trade-offs, as when the same respondents were asked about in-game advertising over a third were against them.
The obvious question from the video game industry perspective is, how far can the ad supported model go? Many console games are already ad supported, especially sports games, even though they cost $50 and up to buy. Now these core games are testing the water of dropping the hefty price tag and seeing if ads can support them. EA Dice will release Battlefield Heroes for free later this year. Apparently the game will not have any in-game ads, only around-game ads. EA Dice will place ads on the website promoting the game and on the game's menu, but not in the game itself. Interestingly, Battlefield Heroes will also veer towards a more 'cartoony' style than other Battlefield games. No doubt this is a bow towards the cartoony style of many casual games and an attempt to appeal to casual gamers.
Some questions emerge: 1) how many video games can advertising support?; and more generally 2) how much new media can advertising support? The current business model of the average website is to be ad supported, but with an endless possibility of websites (this blog for instance), the competition for advertising is potentially equally endless. Only a few very popular websites can make much money. The question is how to generate sufficient traffic. Probably core games will continue to be largely supported by consumer purchase. Yet increasing competition could force publishers to find a balance between lower consumer prices and more advertising. Only time will tell?
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Some issues to throw out there:
First, something to consider for ad suported games is that advertisers spend much more of their budget elsewhere. The reach from other media is still higher than in video games and reaches other age markets as well.
Second, respondents would rather play for free rather than to pay, but respondents would defintely prefer to play without advertisements in general. I think that a perfect example of what an ad suported game would look like is on candystand.com, only imagine playing those games on a console. Which is in fact easy to do if you look at a multitude of games that were released by Ford, Chevy, and Dodge that feature their brand in the game exclusively. Those games are in the 4.99 rack, or 2 for 1 at circuit city, right by the printer cartridges... On the other hand, take America's Army, a very sucesssfull game fully endorsed and developed by the Army, but then they do have a massive budget for advertisement to that age group specifically. (Public money mind you)
Lastly, advertisements tarnish games that naturally should not have advertisements like in mmorpg's, fantasy games, and strategy games. "Ad fit" is very important to gamers and they are very aware of the ads-offenders.
Nevertheless, the industry is growing and changing, lets keep our eyes open.
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