In-game advertising has evolved into a sophisticated marketing channel across console, PC, and online games. As gaming continues to capture significant portions of entertainment time across all demographics, advertisers in Canada are increasingly looking to these platforms to reach audiences. However, when these marketing efforts target or potentially reach children, companies must navigate Canada’s specific legal landscape designed to protect young consumers. This blog explores the various advertising options available across gaming platforms and examines the Canadian legal considerations surrounding marketing to children.
The Evolution of In-Game Advertising
In-game advertising has transformed dramatically from simple banner ads to sophisticated, immersive experiences that blend seamlessly with gameplay. Today’s options include:
Static Advertising
Static ads are fixed elements within game environments, such as billboards in racing games or branded storefronts in open-world adventures. These implementations typically don’t change once the game is released and are programmed directly into the game’s environment.
In EA’s “Need for Speed” series, Canadian brands like Tim Hortons and Rogers have appeared on fixed billboards around racetracks. NHL games feature authentic rink-side advertisements for Canadian brands like Scotiabank and Canadian Tire, mirroring their real-world presence in hockey arenas.
Dynamic Advertising
Dynamic in-game ads can be updated in real-time, allowing for time-sensitive promotions and regional targeting. These placements can exist as billboards, posters, or other environmental elements that change based on user demographics, time of day, or geographic location.
In “NBA 2K” games, courtside advertisements can be updated remotely to show current promotions from Canadian sponsors like Bell or Rogers during playoff seasons. Racing games use platforms like Anzu.io to display time-sensitive advertisements for Canadian retailers during holiday shopping seasons.
Product Placement
Virtual versions of real products integrated into gameplay provide authentic brand experiences. Examples include branded vehicles in racing games, clothing in sports titles, or food and beverage items that characters can consume.
Hockey games feature authentic CCM and Bauer equipment that players can select for their characters. Games like “Death Stranding” included Monster Energy drinks as consumable items that provided in-game benefits to players.
Advergames
These are games specifically designed around a brand or product, where the entire experience serves as a marketing vehicle. These can range from simple mobile games to more complex console experiences.
Tim Hortons Hockey Challenge: A mobile game built entirely around the Tim Hortons brand, offering rewards redeemable at physical locations.
Doritos Crash Course: An Xbox game featuring the Doritos brand throughout an obstacle course experience.
Branded DLC & Cosmetics
Downloadable content featuring branded items, character skins, or environments allows players to interact with brands within their gaming experience. These often generate revenue through direct purchases while serving as advertising vehicles.
EA’s hockey games feature special edition player cards sponsored by Canadian brands like Rogers or Sport Check. Fortnite Brand Collaborations allow characters to wear skins from Canadian entertainment properties or sports teams like the Toronto Raptors.
Platform-Specific Advertising Opportunities
Each gaming platform offers unique advertising possibilities with their own advantages and limitations:
Console Gaming
Console platforms (PlayStation, Xbox, Nintendo) typically offer more controlled environments for advertising, with platform holders having significant oversight. Most advertising on consoles appears as:
- Branded in-game items and downloadable content
- Product placement within AAA titles
- Dashboard advertisements and sponsored content
- Advertising within platform-specific apps and services
PC Gaming
The PC gaming ecosystem offers diverse advertising channels:
In-game advertising through various ad networks
Game launcher and store advertisements
Sponsored content within streaming platforms
Branded mods and user-generated content
Online and Mobile Gaming
Online and mobile games present perhaps the most diverse advertising opportunities:
- Rewarded video ads (watch an ad to receive in-game currency)
- Playable ads that offer mini-game experiences
- Interstitial ads between gaming sessions
- Banner ads within free-to-play games
- Sponsored events and tournaments
- Influencer marketing campaigns
Canadian Legal Framework for Marketing to Children
Canada has distinct laws and regulations governing advertising to children that differ from those in other countries:
The Competition Act
The Competition Act prohibits false or misleading representations in advertising, which applies to all advertising, including that in video games. Advertisers must ensure that in-game promotions do not deceive consumers of any age about:
Performance characteristics of products
- Available Quantities
- Price and terms of purchase
- Testimonials and endorsements
Provincial Legislation: Quebec’s Consumer Protection Act
Quebec has the strictest regulations in Canada regarding advertising to children:
- Section 248 of Quebec’s Consumer Protection Act prohibits commercial advertising directed at children under 13
- This applies to all forms of advertising, including in-game promotions
- Game publishers must ensure that branded content in games available in Quebec complies with these restrictions
PIPEDA and Provincial Privacy Laws
The Personal Information Protection and Electronic Documents Act (PIPEDA) and provincial privacy laws regulate how organizations collect, use, and disclose personal information:
- Requires meaningful consent for collection of personal information
- For children, this often means parental consent is required
- Special considerations apply when collecting data from minors for advertising purposes
- Game developers must implement age verification and appropriate consent mechanisms
Canadian Code of Advertising Standards
The Canadian Code of Advertising Standards, administered by Ad Standards Canada, provides self-regulatory guidelines that include specific provisions for advertising to children:
- Advertisements must not exploit children’s credulity or lack of experience
- Marketing communications must not directly urge children to purchase products
- Advertisers should not put undue pressure on children to ask their parents to make purchases
The Broadcast Code for Advertising to Children
While primarily focused on broadcast media, the principles in this code are increasingly being applied to digital platforms, including games:
- Requires clear separation between advertising and program content
- Prohibits using characters from children’s programs to endorse products
- Limits the use of fantasy elements that could mislead children
Canadian Marketing Association Code of Ethics
The CMA Code of Ethics includes specific provisions for marketing to children that apply to in-game advertising:
- Requires enhanced consent for collecting data from children
- Prohibits targeting advertising for age-restricted products to minors
- Mandates clear disclosure of advertising content
Special Considerations for Canadian In-Game Advertisers
Bilingual Requirements
Canada’s Official Languages Act may impact advertising in games distributed nationwide:
- In some circumstances, advertising must be available in both English and French
- This affects in-game advertising that could be considered government services or communications
- Many major publishers voluntarily provide bilingual content to serve the Canadian market effectively
Food and Beverage Advertising
Health Canada has introduced restrictions on marketing unhealthy food and beverages to children:
- These restrictions apply to all marketing channels, including video games
- Games featuring food product placement or branded content must comply with nutritional guidelines
- Self-regulatory initiatives in this area continue to evolve
Age Verification Systems
Canadian privacy laws require appropriate verification mechanisms:
- Games must implement effective age gates when collecting personal information
- Simple “yes/no” age gates are generally considered insufficient
- More robust verification may be required for games collecting substantial data
Best Practices for Child-Friendly Gaming Advertisements in Canada
To navigate the Canadian regulatory landscape, advertisers should consider these best practices:
- Regional Compliance: Be aware of stricter provincial laws, particularly Quebec’s restrictions on advertising to children under 13.
- Clear Disclosure: Always clearly identify advertising content, especially for younger audiences who may not recognize subtle marketing.
- Age-Appropriate Content: Ensure all advertising content matches the age rating of the game and avoids manipulative tactics.
- Thoughtful Integration: Design advertisements that enhance rather than disrupt the gaming experience.
- Parental Controls: Support parental oversight by ensuring ads respect system-level parental control settings.
- Privacy-First Approach: Implement robust consent mechanisms that comply with PIPEDA and provincial privacy laws.
- Bilingual Support: Consider providing advertising content in both English and French to serve the entire Canadian market.
- Documentation: Maintain records of compliance efforts to demonstrate due diligence in case of a regulatory inquiry.
The Future of In-Game Advertising and Child Protection in Canada
As technology evolves, new challenges and opportunities emerge in the in-game advertising space:
Digital Charter Implementation Act
Proposed updates to Canada’s privacy legislation may introduce enhanced protections for children’s data:
- Higher standards for meaningful consent
- Stronger enforcement mechanisms
- Specific provisions addressing algorithmic decision-making
Cross-Border Considerations
Canadian game publishers and advertisers must navigate multiple regulatory frameworks:
- Compliance with both Canadian and international laws
- Addressing regional differences within Canada
- Managing platform-specific requirements alongside legal obligations
Industry Self-Regulation
The gaming industry in Canada continues to develop self-regulatory frameworks:
- The Entertainment Software Association of Canada provides industry guidance
- Platform-specific policies supplement legal requirements
- Industry standards continue to evolve alongside technology
Conclusion
In-game advertising offers powerful opportunities for brands to connect with audiences across console, PC, and online gaming platforms in Canada. However, when these marketing efforts involve children, advertisers must carefully balance commercial interests with ethical considerations and compliance with Canada’s unique regulatory landscape.
The most successful campaigns will be those that respect both national and provincial regulations, adhere to industry codes of practice, and create genuine value for players of all ages. By prioritizing transparency, age-appropriate content, and privacy protection, advertisers can build positive brand associations while maintaining the trust of both young Canadian gamers and their parents.
As the gaming industry continues to evolve, so too will the regulatory landscape. Staying informed of these changes and adapting marketing strategies accordingly will be essential for anyone looking to leverage gaming platforms as advertising channels in a responsible and compliant manner within Canada.
