Microsoft Introduces TV-style Ads on Xbox Live

Microsoft has launched new services offering TV style ads on X-box Live. As part of the deal Xbox Live subscribers would also receive access to stream Manga Entertainment. Though Xbox subscribers are already grumbling about a service that is littered with ads despite not being free the future remains uncertain as to how gamers are going to receive such advertisements. The offer would be available in 15-30 second spots to run within video and TV applications.

However, for Microsoft it seems Xbox has already evolved to something more than a gaming platform. As it claims on its website on xbox-live-advertising, “Xbox LIVE is no longer just for gamers, with over 40% of all time on Xbox LIVE spent on other activities such as watching movies, browsing content, listening to music, or on social activities such as viewing Facebook, Twitter, messaging friends, and more.”

The service, named NUads TM forwards the following points to consider for advertisers:

• Online gaming provides better performance and consumer perception than traditional TV advertising.
• Combining premium brand advertising with lean-forward casual games results in dramatically increased brand awareness and perception.
• Both in-game and online game advertising encourage users to interact with your brand, driving key brand metrics.
• More screens mean more interaction and more opportunities. Gaming can be part of a multi-screen strategy that brings messages to PCs, mobile devices, and TVs.

According to Microsoft, Xbox LIVE offers advertisers, “the best of both worlds: the interactivity and accountability of the web and the reach and high definition impact of TV.”

Microsoft’s Ross Honey, general manager of Xbox Live Entertainment and Advertising told the media that “With the growth of Xbox Live, advertisers no longer have to choose between digital and TV advertising – we’re offering the impact of TV and the interactivity and addressability of digital in one platform.”

Since 2010, the Xbox LIVE ads platform has experienced 142 percent growth in revenue. According to industry estimates, US Gold subscribers spend an average 84 hours a month logged into Xbox.