Electronic Arts is betting that in-game ads can out-earn CTV

Making money from ads isn’t new to EA — it put billboards in Need for Speed: Underground 2 back in 2004 — but it’s never tried to build a durable business around them. Until now.

“We’ve launched our ad platform, and the ad platform is, you know, our ad server and SDK, and it’s meant to build a scalable offering for us to work with brands to be able to come in much more flexibly, have some of the targeting and capabilities that they’re used to in other ad platforms,” said Dao.

Ad execs have long thought this moment would come. Games command too much attention for the people who make them not to monetize it. True as that was, it didn’t happen as fast as many expected. Games makers and console manufacturers had no reason to push the button. They were making plenty selling games at $70 a pop. That model started to creak as development costs soared, undercutting the economics of one of entertainment’s most enduring mediums. Advertising went from nice-to-have to must-have. 

That’s why EA built its own ad server, rather than rent one off the shelf. Games like FC, Madden, Sims and Battlefield are too varied for ad tech built for other channels, so owning the stack lets EA tailor formats game by game, serving ads dynamically with targeting at launch based on geography and flight date, and impression measurement aligned to IAB standards. It’s live on a handful of titles for now, with the rest of the library to follow. A lot is resting on how that shakes out. Players are already vocal about seeing ads. Bring in the likes of The Trade Desk and Criteo before the experience is right, and the blowback could kill the business before it’s properly up and running. 

“So we’re not working with those partners yet,” said Dao.

But the path there, he added, runs through standardization. If formats proliferate across games the way a 15- to 30-second unskippable pre-roll does in video, EA won’t need to be so hands-on with how its ads are bought and sold. The ecosystem carries the weight instead. Once console ad units are standardized in the same way CTV and display units are, the need for custom-build approach lessens, and third-party demand has a path to flow through. 

“We do see an opportunity in the future on how we actually start to standardize more formats that are designed for console games,” said Dao. “I think one of the unique things about console gaming is that it shows up in the same premium environment as CTV, and because it shows up in that environment, we believe it is a premium experience, but the difference is that it’s much more, the audience is much more interactive, and CTV, it’s a bit more passive.” 

That’s the core of EA’s bet. In-game ads aren’t just comparable to CTV — they’re arguably better. Gamers are engaged with the content, not watching between episodes with one eye on their phone. If that argument holds, that gaming deserves CTV money, EA wants to build the plumbing that makes it stick.

“In-game advertising has been framed as the next big thing for a long time, but development was slow while programmatic and automation could not be reconciled with the need to maintain the integrity of the game experience,” said Claire Holubowskyj, senior research analyst at Enders Analysis. “Sport is a notable exception with strong advertising affinity: by investing in its own platform EA is capitalising on its early-mover advantage and dominant position over premium sports gaming.”

Total game ad spend in the U.S. (excluding ads on esports, gaming video content and creators sponsored content)is forecast to reach $9.21 billion by the end of 2026, rising 5.3% to $9.7 billion by 2027, and another 4.7% to $10.2 billion in 2028, according to data from eMarketer.

So far, the ads business is still in its fledgling phase with targeting limited to geo, flight dates, frequency caps and budget pacing. That said, EA has started to build packages around gameplay behavior patterns, from player engagement spikes before, during and after live sports matches, tournaments and playoffs.

“When somebody’s watching a live match, we typically see player behavior increasing leading up to the match, and then when the match starts, player behavior goes down,” Dao said. “Knowing we’re able to take a look at historical data on what players want and what they do, and then build experiences and packages with brands to be able to come in and be a part of that moment.”