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."
