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Forums - Microsoft - That is why you have all those ads on dashboard!!

Lostplanet22 on 13 July 2012


Quote:
Advertisers buy clumps of people who will see their advertisement, and the cost for these ads is measured by what’s called the “CPM.” The acronym means cost per thousand, with the M being the Roman Numeral for 1,000. If a site sells advertising space at a $5 CPM, the advertiser pays $5 for every 1,000 people who see the ad. 

Microsoft sells ads on the Xbox 360 Dashboard at a CPM of between $19 to $23, depending on the ad placement and the type of ad. You’ll pay an extra 20% for animated or video ads, and if you’d like to select specific demographics for those ads, you’ll pay an extra 15% per “targeting criteria,” with the maximum bump being 30%.

Quote:
It gets crazier: The data shared with the Penny Arcade Report shows that Microsoft estimates 16 million impressions for an ad during a holiday, so an ad with a $21.50 CPM would cost you a stunning $344,000 to control that spot for the day. You can also buy half-day increments. Microsoft estimates that ads during a normal weekday in the first part of the year enjoyed 9 million impressions, with 15 million impressions over the weekend. Based on these numbers, Microsoft estimates that it would cost $193,500 to control the entirety of an ad spot for your average Monday with what’s called a “road block” ad. Start layering on the features, however, and that price can begin to rise very quickly.

It would be hard for any company pass up this amount of revenue, and the number of ads being sold is only limited by the amount of ad space Microsoft can fit on your screen; the amount of marketing a design can deliver to the audience may trump both aesthetics and ease of use for gamers. “If you notice the dashboard redesign added in more spots for ads than were on the blades so they have more inventory to sell,” my source explained.

Quote:
I contacted Microsoft and asked how much advertising revenue impacted the profitability of the Xbox 360. “We don’t share this information publicly but we can tell you that, since 2010, the advertising business has grown 142%,” I was told.


 

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Lostplanet22 on 13 July 2012

SOurce penny arcade/ (and stole post from Neogaf).



 

Chandler on 13 July 2012

Good for them I guess that they have been able to build this "particular" fanbase. Savvy entrepreneurship if nothing else.



Ongoing bet with think-man: He wins if MH4 releases in any shape or form on PSV in 2013, I win if it doesn't.

kitler53 on 13 July 2012

well the reason is obvsious, and it is good business. ...i'm just surprised they can command such a premium.



Slimebeast on 13 July 2012

How many of those ad spots fit on one screen?

And what are those ads typically about? New games, or Netflix or can they be entirely different like you see on TV, like for a soda or a car?

It's two years since last time I was online on Xbox Live and I don't remember anymore.



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Lostplanet22 on 13 July 2012
Slimebeast said:
How many of those ad spots fit on one screen?

And what are those ads typically about? New games, or Netflix or can they be entirely different like you see on TV, like for a soda or a car?

It's two years since last time I was online on Xbox Live and I don't remember anymore.


Tabs:

Home =>  Xbox 360 games ads
Video => five movie ads + random advertisement
Games => games ads + random advertisement?
Apps => apss advertisements

But that is for the Benelux.  For UK/USA you can almost double the ads ...=p



 

Slimebeast on 13 July 2012
Lostplanet22 said:
Slimebeast said:
How many of those ad spots fit on one screen?

And what are those ads typically about? New games, or Netflix or can they be entirely different like you see on TV, like for a soda or a car?

It's two years since last time I was online on Xbox Live and I don't remember anymore.


Tabs:

Home =>  Xbox 360 games ads
Video => five movie ads + random advertisement
Games => games ads + random advertisement?
Apps => apss advertisements

But that is for the Benelux.  For UK/USA you can almost double the ads ...=p

So it could mean about $1 million per day by a conservative estimate if you go by the numbers in the OP. That's $365 million per year.

Really nice! I am happy for MS. Somehow it also benefits gamers too in the long run if a console maker has big revenue streams because they'll have more resources invested back into better hardware, better virtual infrastructure etc and perhaps even more games.



Zappykins on 13 July 2012

I honestly don't mind most of the adds, especially if helps make more games, features and a better console. And sometimes they are actually interesting or teach me something cool. (I still miss the Major Nelson/ Xbox 101 stuff.)

But a Flashy add (like a Blizzard one earlier in the year) will make me flip screens and boycott a product. They should allow the user to limit some add - especially the ones that flash and blink like a bad 2004 web champagne that are about as pleasant as 3 screaming children in a a stuffy airplane. No screaming 'Buy me! buy me!' ones please.



 

Really not sure I see any point of Consol over PC's since Kinect, Wii and other alternative ways to play have been abandoned. 

Top 50 'most fun' game list coming soon!

 

Tell me a funny joke!
Lostplanet22 on 13 July 2012
Slimebeast said:
Lostplanet22 said:
Slimebeast said:
How many of those ad spots fit on one screen?

And what are those ads typically about? New games, or Netflix or can they be entirely different like you see on TV, like for a soda or a car?

It's two years since last time I was online on Xbox Live and I don't remember anymore.


Tabs:

Home =>  Xbox 360 games ads
Video => five movie ads + random advertisement
Games => games ads + random advertisement?
Apps => apss advertisements

But that is for the Benelux.  For UK/USA you can almost double the ads ...=p

So it could mean about $1 million per day by a conservative estimate if you go by the numbers in the OP. That's $365 million per year.

Really nice! I am happy for MS. Somehow it also benefits gamers too in the long run if a console maker has big revenue streams because they'll have more resources invested back into better hardware, better virtual infrastructure etc and perhaps even more games.

Honestly like someone said on neogaf  'So much income from their ads and they still charge you for online?' 



 

Farsala on 13 July 2012

I hate ads of any kind :P. Ads on vgchartz are ok since they are not so big. I rarely watch tv mostly because the ads are on for to long.