Advertising battle

 
Video games With "Battlefield - Heroes", video game manufacturer Electronic Arts is testing a new business model: financing via in-game advertising. 
The video games business is booming. Last year, the global market grew from 33 to around 40 billion dollars. Although growth rates are not expected to be as stellar in 2008, they are likely to be well over 10 percent - and if the new business model from Electronic Arts (EA) proves successful, perhaps even more. The leading manufacturer of video games recently presented a potentially groundbreaking business model: the game "Battlefield - Heroes" is no longer purchased as a product in stores, but is downloaded directly from the Internet onto the hard disk - free of charge. It is financed exclusively via advertising in the game and so-called micro-transactions.
"Fifa" was given away EA launched a trial run of this model two years ago in South Korea, the epicenter of online gaming culture, with "Fifa". The game, which is a sales hit in our part of the world year after year, was simply given away in Asia. Before long, over 5 million users had signed up and were generating a monthly turnover of one million dollars. New shoes and smart T-shirts for the team are purchased, but the players' performance can also be increased in monetary terms. According to Gerhard Florin, Executive Vice President Publishing Americas Europe at EA, the majority of users do not invest any money, while a fairly large minority are prepared to spend 15 to 20 dollars a month.
This micro-transaction model is supported by in-game advertising revenue in "Battlefield - Heroes". But unlike "Fifa", where only advertising from licensed partners of the international football association can be implemented virtually, Electronic Arts is free to choose the advertising for the online shooter game, which will be available from the summer. This was developed from scratch by Studio Dice, the same team that programmed the earlier "Battlefield" titles.
Beginners with opportunitiesBut compared to them, the aim is to make it easy for casual players to get started: "We wanted to take Battlefield in a new direction with the cartoon style and beginner-friendly gameplay," says Ben Cousins, Senior Producer at Dice. In addition, the action title has a match-making system that allows players of equal strength to compete against each other and does not degrade beginners to cannon fodder.
Electronic Arts is now trying to capitalize on both the increased popularity of online gaming and the demographic expansion brought about by Nintendo's Wii. "People want to play games in new ways, with convenient access to quick fun," Florin is convinced. Good (marketing) preparation is likely to be crucial for the success of "Battlefield - Heroes", as the awareness of the title must be sufficient beyond the usual gamer community for the advertising and micro-transaction revenues to really add up.    
Marc Bodmer