Spin this: MS earning MILLIONS on ads vs XBL fee

http://penny-arcade.com/report/editorial-article/ads-up-games-down-the-ugly-profitable-truth-about-xbox-live-advertising

"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%."

"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."

"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."

http://thenextweb.com/microsoft/2012/07/13/xbox-lives-lucrative-advertising-system-can-command-cpm-rates-north-of-30/

"That works out to, cue Google?s calculator functions, top tier pricing of CPM rates [...]

Millions of ad impressions per day, with larger viewer tallys on the weekends, at double digit CPM rates means that ads on the Live Home screen are bringing in tens of millions of dollars a year. The total amount could be 9 figures yearly.

However, it is the demographics of Xbox users that drive the high CPM rates. The young male population group is notoriously hard to reach, making these specific ad locations worth more than they might otherwise be, if they were viewed by a mostly different subset of the larger citizenry."

I don't care whether or not these ads are easy to see or not, but paying $60/year when MS is already making millions upon millions of the ads? That's just crazy and I love how people defends this.

Go.

Well, amazing service deserves profits. Will gladly pay for a an online experience thats better than anything else by a lot

This is why I hate Xbox Toll Booth.

by now you should know better than to think that there is something that lems couldn't spin, but it will be funny to see either way.

TOPIC"Spin this..."

ahem...

Well, amazing service deserves profits. Will gladly pay for a an online experience thats better than anything else by a lot

reach3

lol

Get over it. Xbox live costs money, don't want it? Don't buy it. Is it a rip off, hell yea it is. But it's not required. FPSfan1985

I don't support it or pay it no mind so it doesn't bother me.

[QUOTE="FPSfan1985"]Get over it. Xbox live costs money, don't want it? Don't buy it. Is it a rip off, hell yea it is. But it's not required. danish-death

Get over it. Xbox live costs money, don't want it? Don't buy it. Is it a rip off, hell yea it is. But it's not required. FPSfan1985

MS went hollywood on me with the 360 ... so i went PS3 on them ... F them

business is business

MS just takes it that extra mile

[QUOTE="danish-death"][QUOTE="FPSfan1985"]Get over it. Xbox live costs money, don't want it? Don't buy it. Is it a rip off, hell yea it is. But it's not required. FPSfan1985

And just think, they actually had the nerve to raise the price of XBL. Bad.

[QUOTE="FPSfan1985"]Get over it. Xbox live costs money, don't want it? Don't buy it. Is it a rip off, hell yea it is. But it's not required. danish-death

^Lol this, not required so If someone doesn't pay for gold then they can't play a part of their own game that is free everywhere else ? Jesus..I expect Lems to defend this horrible pratice with the most stupid excuses.

[QUOTE="FPSfan1985"]Get over it. Xbox live costs money, don't want it? Don't buy it. Is it a rip off, hell yea it is. But it's not required. OhJayDubya

It's high time microsoft dropped the Gold fee. It's just getting silly now. Ninja-Hippo

[QUOTE="Ninja-Hippo"]It's high time microsoft dropped the Gold fee. It's just getting silly now. KalDurenik

[QUOTE="OhJayDubya"][QUOTE="FPSfan1985"]Get over it. Xbox live costs money, don't want it? Don't buy it. Is it a rip off, hell yea it is. But it's not required. FPSfan1985

[QUOTE="FPSfan1985"]

[QUOTE="OhJayDubya"] Unless you want to play the game outside of the single-player, then Yes it is required. Who buys a game to not experience the full package? Would be like going on holiday and just staying in the hotel room for the entire time.OhJayDubya

[QUOTE="KalDurenik"][QUOTE="Ninja-Hippo"]It's high time microsoft dropped the Gold fee. It's just getting silly now. Stevo_the_gamer

Well, amazing service deserves profits. Will gladly pay for a an online experience thats better than anything else by a lot

reach3

[QUOTE="FPSfan1985"]

[QUOTE="OhJayDubya"] Unless you want to play the game outside of the single-player, then Yes it is required. Who buys a game to not experience the full package? Would be like going on holiday and just staying in the hotel room for the entire time.OhJayDubya

More than 50% of people do not play online. SW constantly overestimates online because the population at this site is not representative of the whole gaming poulation. Moreover, even here in SW if you put up a poll there are quite a few people that are SP gamers only. And there are many genres of games where online is either non-existent or an afterthought.

Not that this is a good excuse for anyone who feels like $60 is a ripoff, burden, whatever. But the fact still remains that over 50% of 360 owners are not playing online. Some portion of those probably would online game, occassionally at least, if it was free. But many are simply not interested. And a bunch are not even connected to the internet.

Well, amazing service deserves profits. Will gladly pay for a an online experience thats better than anything else by a lot

reach3

except steam/skype that are, of course, free.

It's fine if people want to pay M$ high fees for something they already paid for when they bought the game, but I hope we'll still have a choice to do the wise thing next gen.

as seeing the ad's are in very small box off to the corner where it is nearly last thing you get to when moving the stick. idk about other people but all i see is ads about video games.

so ya i dont care about it very much. as long as they stay about video games and stay off in the bottom corner, but that dosn't me i like them.

I don't understand how they can charge people $60 and still litter there service with ads. I understand that gaming is still a business but when you are milking your user base for every dollar/euro/pound that they have, it just shows that Microsoft care nothing for gamers or gaming and all about the money.OhJayDubya

While Sony only cares for gamers, PS3 was only 600$ at launch, Move is only 99$ for a device that not a single good game uses exclusively and the PSN+ to rent games you never own are all amazing stuff and they are not making Sony any money LOL

I don't understand how they can charge people $60 and still litter there service with ads. I understand that gaming is still a business but when you are milking your user base for every dollar/euro/pound that they have, it just shows that Microsoft care nothing for gamers or gaming and all about the money.OhJayDubya

The only company (console manufacturer) in gaming that cares about gaming is Nintendo... don't get me wrong, if there was no money to be made in it, they wouldnt do it either. But they seem to legitimately care about the industry itself, to Sony & MS its just $$$. Though I would say MS is the greediest. There is absolutely no reason.... NO REASON at all that MS couldn't provide the service even at HALF of what they charge for a yearly subs. and still be very profitable.

Unfortunately the suits dont see it like this.... its their job to get as much money out of us as possible... and they know that $60 / year is the sweet spot. I don't even use the service.... but I subscribe to it. I guess I feel like if I can't access XBOX Live then my console isn't whole.

Don't like the live fee. But nothing will stop Microsoft from continuing their business practices. People won't protest against it and people will still continue to buy the console regardless of the price. The only thing that could happen is that Sony or Nintendo step up their online game and just offer way more incentive, in order to make Microsoft at least add more additions to the gold members...

Paying for online and cross chat is stupid, especially when there's no other deals that justify the price. Hope microsoft stops being greedy with the fees.

Call me a skptical but if Xbox live had no ad's what would we have? people still b****ing about xbox live fee's and TC please don't act innocent in the matter nor half the people posted in the thread.

Its the same thing every day one can look at the state of things and imagine based upon past experience what they would be if things were different.
Xbox live ad's? well if they weren't there the same people complaining about ad's right now would still be complaining about the fee's and how horrible it is that you pay them. *mind you these people don't usually have xbox live and are usually charlie sheens*
No games? Even if we don't listen to the morons whom actually make the claims that the 360 has no games *which is a lie* go back 2 years ago when they had no capable way of saying it had no games and they still complained it has no games, those games suck...etc mind you these people would again not usually own a 360 and usually be charlie sheens again.

So there is no real reason to spin it at all. I dislike the ad's which is why I'm not renewing 5/2013 when my gold runs out but lets be realistic the ps3 could have ads and the majority of people would applaud it in this thread...but wait it actually does have ad's there are ad's on the playstation store, ad's in certain areas of the ps3 xmb that are out of the way and you can usually turn that area off but that is just semantics those are still ad's and that is still the ps3 so yes there are ad's on the ps3.

Tomorrow the xbox could get an update delegating all ads to the same small and or hidden areas like the ps3 and you charlie sheens would still complain even though you likely don't own a 360...so color me unimpressed with your words and claims.

I don't understand how they can charge people $60 and still litter there service with ads. I understand that gaming is still a business but when you are milking your user base for every dollar/euro/pound that they have, it just shows that Microsoft care nothing for gamers or gaming and all about the money.OhJayDubya

i get tired of seeing this comment. Do you see "non profit" near their name? do you see"non profit" in any of these game companys? Shoot i dont even see "non profit" in f2p games.

NOT one of these companys is out NOT to get payed. They make enjoy games personaly but not has a business

MS makes money? The shock :o

Lemmings would defend M$ even if they killed their dog. That's why they're lemmings and that's why M$ is cancer.kuraimen

Sure, why not ?

It is the only HD console that had a cost of 300$ at launch, unlike the 600$ of PS3 to actually buy worst hardware that will run all multipltform games worst

What is there not to like in MS ? The fact that is the only one getting real JRPGs like Lost Odyssey, Blue Dragon and Tales of Vesperia, the best JRPGs this generation

Or the fact that they have the best shooters by miles in Halo, Gears

Or the best WRPGs like Witcher 2, Skyrim, Mass Effect 1, Fable 2-3-Journey etc etc

You have to be kidding if you suggest there is no reason to support MS and their game lineup, which also happen to be real games with gameplay and not a series of cut scenes and QTE like Uncharted, MGS4, GOW, HEavy Rain etc

This is why after making a mistake ad buying a 360 this gen I woun't be even thinking about getting a nextbox next gen.

This is why after making a mistake ad buying a 360 this gen I woun't be even thinking about getting a nextbox next gen.

inb4uall

And MS needed that sale so much, it is the one sale they base their whole next gen plans on LOL

[QUOTE="kuraimen"]Lemmings would defend M$ even if they killed their dog. That's why they're lemmings and that's why M$ is cancer.loosingENDS

Sure, why not ?

It is the only HD console that had a cost of 300$ at launch, unlike the 600$ of PS3 to actually buy worst hardware that will run all multipltform games worst

What is there not to like in MS ? The fact that is the only one getting real JRPGs like Lost Odyssey, Blue Dragon and Tales of Vesperia, the best JRPGs this generation

Or the fact that they have the best shooters by miles in Halo, Gears

Or the best WRPGs like Witcher 2, Skyrim, Mass Effect 1, Fable 2-3-Journey etc etc

You have to be kidding if you suggest there is no reason to support MS and their game lineup, which also happen to be real games with gameplay and not a series of cut scenes and QTE like Uncharted, MGS4, GOW, HEavy Rain etc

[QUOTE="inb4uall"]

This is why after making a mistake ad buying a 360 this gen I woun't be even thinking about getting a nextbox next gen.

loosingENDS

And MS needed that sale so much, it is the one sale they base their whole next gen plans on LOL

[QUOTE="OhJayDubya"]I don't understand how they can charge people $60 and still litter there service with ads. I understand that gaming is still a business but when you are milking your user base for every dollar/euro/pound that they have, it just shows that Microsoft care nothing for gamers or gaming and all about the money.loosingENDS

While Sony only cares for gamers, PS3 was only 600$ at launch, Move is only 99$ for a device that not a single good game uses exclusively and the PSN+ to rent games you never own are all amazing stuff and they are not making Sony any money LOL

No matter what, fanboys and corporate apologists will defend this.

All I know is that I'm glad I don't have to put up with being Microsoft's cash cow. With that in mind, Xbox fanboys should really be called Cows from now on.

[QUOTE="loosingENDS"]

[QUOTE="kuraimen"]Lemmings would defend M$ even if they killed their dog. That's why they're lemmings and that's why M$ is cancer.kuraimen

Sure, why not ?

It is the only HD console that had a cost of 300$ at launch, unlike the 600$ of PS3 to actually buy worst hardware that will run all multipltform games worst

What is there not to like in MS ? The fact that is the only one getting real JRPGs like Lost Odyssey, Blue Dragon and Tales of Vesperia, the best JRPGs this generation

Or the fact that they have the best shooters by miles in Halo, Gears

Or the best WRPGs like Witcher 2, Skyrim, Mass Effect 1, Fable 2-3-Journey etc etc

You have to be kidding if you suggest there is no reason to support MS and their game lineup, which also happen to be real games with gameplay and not a series of cut scenes and QTE like Uncharted, MGS4, GOW, HEavy Rain etc

I dont see how TBH

I dont game online, so i actually pay for nothing else but games

They certainly dont rip me off constatly LOL, that is nonsense

Now try to spin PS3 600$ cost

I don't understand how they can charge people $60 and still litter there service with ads. I understand that gaming is still a business but when you are milking your user base for every dollar/euro/pound that they have, it just shows that Microsoft care nothing for gamers or gaming and all about the money.OhJayDubya

pay TV in australia has adverts in it..... why are u still getting adverts in a premium service?

Call me a skptical but if Xbox live had no ad's what would we have? people still b****ing about xbox live fee's and TC please don't act innocent in the matter nor half the people posted in the thread.

Its the same thing every day one can look at the state of things and imagine based upon past experience what they would be if things were different.
Xbox live ad's? well if they weren't there the same people complaining about ad's right now would still be complaining about the fee's and how horrible it is that you pay them. *mind you these people don't usually have xbox live and are usually charlie sheens*
No games? Even if we don't listen to the morons whom actually make the claims that the 360 has no games *which is a lie* go back 2 years ago when they had no capable way of saying it had no games and they still complained it has no games, those games suck...etc mind you these people would again not usually own a 360 and usually be charlie sheens again.

So there is no real reason to spin it at all. I dislike the ad's which is why I'm not renewing 5/2013 when my gold runs out but lets be realistic the ps3 could have ads and the majority of people would applaud it in this thread...but wait it actually does have ad's there are ad's on the playstation store, ad's in certain areas of the ps3 xmb that are out of the way and you can usually turn that area off but that is just semantics those are still ad's and that is still the ps3 so yes there are ad's on the ps3.

Tomorrow the xbox could get an update delegating all ads to the same small and or hidden areas like the ps3 and you charlie sheens would still complain even though you likely don't own a 360...so color me unimpressed with your words and claims.

WilliamRLBaker

There is no way to win this argument. I don't mind ads when they're as easy to ignore as they're with XBL and PSN/XBM. The thing is that MS is making an unreasonable amount of money off of ads and they're still charging people money for Gold Membership, not just that, but some years ago they raised the price of the fee.

Don't misunderstand me - I know that to MS, Nintendo and Sony this business is all about making money and that's it, but let's get real here because the ads alone could easily pay for whatever involvement MS has with putting up the ad(s), XBL as a service and still make a profit of the "Gold" Fee. I seriously doubt that the 60/year is nothing more, but 100% profit to MS.

I'm not saying that the fee itself is expensive, no, but when looking at things it's just one big WTF why?! situation.

And yes, people would still b1tch about the Fee, I have no doubt about that, but the fee + ads combined is just ridiculous.