Electronic Arts (EA) the world’s largest game developer will be placing in-game video advertising in Xbox & PC games. The ads will be dynamic and can be changed and updated via internet connection unlike the traditional in-game advertising such as billboards require long lead time and cannot be refreshed.

EA will be placing the dynamic ads from Massive, the in-game ad network bought by Microsoft earlier this year, and from IGA Worldwide, which is ranked the #1 name in In-Game Advertising.

According to Shar VanBoskirk, an analyst in Forrester Research, this addition by EA will expand the ad inventory and offer a potential large audience.

Yankee Group estimated in-game ad revenue of about $55 million in 2005, but expects the category to explode to $730 million by 2010. Ad-network executives from Massive and others such as Double Fusion say that total could go much higher, estimating sales as high as $2 billion by the turn of the decade.

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