- Sony is building a program that lets advertisers buy ads in PlayStation games.
- It is testing with ad tech partners to place in-game ads, similar to a move by rival Microsoft.
- The program is expected to start before the end of this year.
Sony is working on a plan to place ads in PlayStation games, similar to Microsoft’s efforts to place ads in Xbox, the sources said.
Sony is testing with ad tech partners to help game developers create in-game ads through the software developer program, three people involved in the program said. The idea, they say, is to encourage developers to continue developing free-to-play games that have soared amid the pandemic, giving them a way to monetize.
PlayStation’s current ad inventory is limited to in-menu ads, such as game publishers promoting their games in console stores, sources said. PlayStation also offers streaming video ads to people streaming through the console through apps like Hulu.
The new program, expected to launch in late 2022, will be advertised within the PlayStation games themselves and sold through the private market, sources said. The goal is to make the ad look like part of a game, like a digital billboard in a stadium. Formats may include ads that reward viewers for viewing ads and promotions for in-game items such as avatar skins.
Sony has yet to decide whether it will cut revenue, the sources said. It is also considering charging developers and publishers for data on consumer activity on the PlayStation, one of the people said.
Sony did not respond to a request for comment.
Sources say Sony started talking about building a PlayStation advertising program about 18 months ago after launching the latest generation of the PS5 console. One of the people said the scrutiny of ad-tech companies was so severe that it ruled out the possibility of collecting personal information such as emails or names.
Dario Raciti, managing director of Zero Code, Omnicom’s gaming and esports division, said advertisers may be interested in the idea of putting ads in front of gamers, who are difficult to reach with traditional advertising. But he was also skeptical that the PlayStation and Xbox ad programs described by Insider could track gamers and measure their actions after seeing an ad. He said it was difficult for ad tech companies to convince developers to let them place ads in popular games, while many advertisers want to avoid appearing in mature or violent games.
“It’s a new thing, and like the metaverse, everyone is scrambling to try it out, but for people who have done games and know the audience of games, we’re going to take a wait-and-see approach,” Raciti said.
