Transcript In(Game) Advertising: The European Perspective

(In)Game Advertising:
The European Perspective
Felix Hofer
Hofer Lösch Torricelli
Florence
[email protected]
www.hltlaw.it
Talking about a niche area?
• Parks Association Industry Report (US
data)
– Game Ad Spend 2006: USD 370 million
– Forecast 2012: USD 2,051 million
• EU Commission on-line content sales by
2010 global value (=4 x 2005 value): 8,3
bln euro
Who’s out there?
• Mediascope Europe for EIAA:
– Internet most popular communication tool
among 16-24,
– 82% on-line 5 days/week (entertainment &
information),
– 46% prefer Internet over (and uses it more
than) TV
Where does (and will) consumers’
money go?
• Game consoles 2007 Xmas: 80 million worldwide (=
9.8 billion Euro)
• France: Gaming Sector surpassed Entertainment
Industry in revenues
• Digital platforms come-back for popular past-time
games
• New playing venues (e.g. sports arenas, shopping
centers),
• New events (“disc burn” sessions) attractive for
gamers
Sexy to the Ad Industry, ‘cause:
• Gaming is no longer just for kids
• Gamers are NOT bothered by ads, they are
perceived as contextual and realistic, in the UK for
86% OK, when determining price
• Rise of dynamic in-game vs. static ads
– 2006 - 40% of global spending
– 2007 - approx. 55%
• German forecast: dynamic ad spending soon to
double static ad investment (USD 122 per 1,000
views likely)
Also appealing ‘cause:
• Game Play Metrics = better idea on effectiveness & details
(angle/distance of ad views, game pauses, position changes),
• Demographic targeting (different dynamic ads for different
audiences) + real time placement & consumer engagement,
• Great product placement/cross marketing opportunity
(Smartphone in “Splinter Cell: Double Agent”),
• Games within on-line ads (Vigorsol chewing gum advergame)
• Profiling potential for SEs (in-game behaviour
evaluation/categorizing: “dishonest/unfair”, “brave/daring”,
“non-competitive/confrontational”)
What’s the law(yer)’s play in this
exciting game?
(i) Promoting/advertising the game?
• Beware of:
– Misleading/comparative advertising (Dir. 114 of
2006),
– Unfair commercial practices (Dir. 29 of 2005),
– New provisions on Audiovisual Services (Dir. 65 of
2007, to be implemented by 2009) setting ad
regulations for all media,
– Countries' rules on State Monopoly (re: games of
chance + entry fees & money prizes).
(ii) Selling the game through on-line
order system?
• RECALL:
– Rules on Distance Sales
• Dir. 7 of 1997
(iii) Selling the game by on-line
downloads?
• THINK OF:
– E-commerce regulations
• Dir. 31 of 2000
– obligations as to sales promotions,
– (unsolicited) commercial communication restricted.
(iv) Side thoughts about product
placement / cross marketing?
Or even Reverse Product Placement!
Those Europeans!
• Until now NOT specifically regulated in
the EU
• TVWF Directive (552/1989):
– All advertising: readily recognizable &
separated from other program parts,
– Surreptitious advertising: strictly banned.
Some examples:
• Austrian Administrative Court finds
unacceptable product placement in
headlines crediting fashion houses for
clothing supply of TV hosts/moderators.
• Independent Ad Watchdog nails Swiss
Public TV & Broadcast for showing one
of its moderators commenting on
America's Cup victory with winner’s logo
on the mike.
AVMS Directive, while...
• Allows product placement (MS may rule
differently):
– in movies & TV films/serials, sports &
entertainment, or
– when resulting in free supply of products/services,
• Provided it does not:
–
–
–
–
exercise undue influence on content / programming,
directly push products/services’ purchase,
excessively high lighten product/service,
lack of appropriate identification (beginning & end).
What’s a poor ad guy to expect
from such a legal masterpiece?
• AVMS Directive:
– originally meant (UK pressure) to ease
product placement as crucial financial
resource,
– final text “watered down” (Germany & other
countries),
– likely to loose further effectiveness within
national implementation (German
Journalists' Association strongly objected
to PP in TV programs)
Any clues about who was involved in this?
Official statements: no money changed hands, only
“cross marketing” occurred.
Don’t worry too much!
• PQ Media Research:
– PP on constant rise in ad spending
– 37% increase in 2006 (up to 3.6 bln. USD)
– Steady rise of PP spending (2008-2010)
predicted.
(v) Are you by chance thinking of a
little profiling?
• Did new platforms & tech
tools/applications (revealed at CES
2008) steer your imagination?
Don’t even dream of it!
The b----y Europeans again!
• Rules on 'personal data handling' (Dir. 46 of
1995):
– Data subjects' informed consent & rights,
– In-advance notification (sometimes) with PDC.
• Provisions on electronic communication (Dir.
58 of 2002):
– Opt-in system for unsolicited commercial
communication,
– Location data's use: consent/anonymity,
– Easy opt-out mechanism (“killer bottom”).
What about the game industry
targeting Europe?
• Cons:
– No easy task,
– As in US, to consider
• Federal ( = EU Directives),
• State Law (= national implementing provisions),
• Local Regulations (at Regional or Municipal
level),
What about the game industry
targeting Europe?
• Pros:
– 500+ mln. consumers market,
– EU Commission:
• aware of the sector’s economic importance,
• heading towards “single market” for on-line
content,
• planning harmonized regulation, aimed at:
– facilitating broad consumer on-line access,
– increasing offer of on-line content,
– granting authors' appropriate
protection/remuneration.
When and How?
• Issue to be addressed in 2008,
• Action plan focused on:
–
–
–
–
Incentives for content creators,
Multi national content licensing,
Harmonized on-line DRM system,
Ethic Codes involving all stakeholders
(authors/creators - providers/retailers consumers)
(In)Game Advertising:
The European Perspective
Felix Hofer
Hofer Lösch Torricelli
Florence
[email protected]
www.hltlaw.it