If you own an Xbox Live, get ready to see some more advertisements as Microsoft has recently announced that it is going to make significant investment, following the huge success of its first wave of NUads (Natural user-interface ads), which rolled out during Fall 2012, featuring ads from major companies like Subway and Toyota.
The Windows maker reported that 37 percent of viewers engaged in some way with NUads when prompted with the option to vote. Out of this 37 percent, 71 percent actually voted in a poll, while 97 percent of those saw their vote included in a final tally of votes, which sounds really interesting.
“NUads have “redefined the 30-second spot.” He said that though traditional TV’s 30-second spot has not changed much since the 1930s, NUads offer an unprecedented level of consumer engagement,” said Microsoft general manager of Xbox Live entertainment and advertising Ross Honey.
“These results show that NUads is a real breakthrough in TV advertising, and you can expect more investment from us when it comes to this new ad format and video advertising in general,” he added.
The even interesting part is the outcome of this announcement by Microsoft, as this created opportunity for digital advertising agencies. For instance, a Seattle-based digital agency Cypress has introduced CypressX, a new application framework for Xbox Live video apps, to help publishers better monetize their content. The framework offers new forms of advertising and more flexibility to make rapid changes.
“Believe it or not, nobody is working with customers to dynamically manage (Xbox Live video) apps the way we are. We saw an exciting opportunity to help (media companies) increase customer engagement, extend their monetization strategy and ultimately decrease the cost of maintaining these apps,” said Cypress’s CEO Nate Thompson.
SiliconANGLE’s Kyt Dotson believes that Xbox has been positioned extremely well for advertisements and monetization.
“Xbox is almost the de facto console across the United States, and one of the three major players that runs the market between Nintendo and Sony,” Dotson says. “Most importantly, it’s application and video game markets wed almost seamlessly with the rising tide of digital distribution and media presentation in the living room. Users make their own profiles, input their own information, and engage in social activity on their consoles giving Xbox Live a lot of demographic information to target and fit advertisements to appropriate audiences.”