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Why aren't there ads embedded in mobile games?

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Hi! I was wondering why wouldn't popular games embed real ads in their game (such as we have everywhere in real life for general goods - food, furniture etc.). For example, in a 3D endless runner there could be visible billboards with real ads added to the environment . It would reduce the friction created by interstitials and I'm sure the audience reached would be higher than a real billboard placed somewhere on the side of a street (for games that have millions of downloads and an active player base). I read a couple of reasons I found in a few searches on Google, but all of them were speculations and seemed a little far fetched to me. Thank you!

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