EA Gets Ads in the Game

One of the intriguing things about video game publishers is their drive toward becoming more complete media companies. Part of that move includes CDs based on soundtracks of games such as Take-Two Interactive Software's (Nasdaq: TTWO  ) Grand Theft Auto series. Another facet is increasing in-game advertising placements.

Earlier this year, Activision (Nasdaq: ATVI  ) took the initiative, announcing a partnership with Nielsen to develop standard "audience measurement metrics" to help advertisers "assess the impact of in-game ad exposure" (see All for Ads Within Video Games). But it is Electronic Arts (Nasdaq: ERTS  ) -- the biggest independent publisher with the broadest collection of yearly hits -- that has been pushing the trend.

Last week, Reebok (NYSE: RBK  ) announced a multi-title agreement to put its products in EA's games, dubbing the relationship a "sponsorship." Beginning with the arcade-style football game NFL Street 2 -- released yesterday -- Reebok endorsees will be rocking the latest Reebok athletic gear before it is even available to the consumer at retail. The agreement also extends into the next version of NBA Street.

EA's smash hit street racer, Need for Speed Underground 2, which was released last month, also carries multiple sponsorships. In addition to car parts manufacturers such as Unorthodox Racing and Toyo Tires, a cruise through the game's city will yield at least four or five Burger King restaurants and Best Buy (NYSE: BBY  ) stores, as well as several banners touting SBC (NYSE: SBC  ) and Bell South's (NYSE: BLS  ) jointly owned Cingular Wireless.

What's clear is that in-game advertising presents a lucrative opportunity for all of the big-game publishers, and so far Electronic Arts is on top of this game.

Fool contributor Jeff Hwang owns shares of Electronic Arts.