Companies should focus on making in-game advertising appear 'diegetic' as opposed to the low hanging fruit of inserting it like a sore thumb.

Had Ubisoft scattered a number of graffiti or town criers in Odyssey's cities talking about visiting a foreign land for less money the next few days only, where the art direction looked and felt perfectly at home in the world itself and interacting with the hooks alerted users to the promotion details, this would have been way less disgusting to players.

You didn't have players revolting when Cyberpunk's 2.0 update suddenly had characters talking about Dogtown which then hooked into trying to upsell the DLC. It fit the world and was something that could be ignored or engaged with as desired.

GTA: Online's phone calls hooking into paid or new content are another example of doing it better (though their frequency is tuned really poorly).

The problem is most publishers don't want to spend the extra time and money to fit ads into the worlds players are in. Which is dumb, as testing a really terrible UX that players will revolt on and press will cover negatively is going to shoot in the foot an initiative that would have gone much smoother with a bit of elbow grease and respect for the players.

Especially with the increase in in-game commerce I expect that we will see a spike in in-game advertising over the next few years, and with advances in generative AI that might even end up being tailored to the in game world as well much more often.

But the reactivity of the audience here means that the publishers who do a good job on limiting the degree to which moving in that direction abuses the playerbase are going to end up much better off than the ones that think dumb shit like a popup ad in the game UI during play is a good idea.