‘TV-like’ advertising coming to Xbox LIVE

Advertising makes the world go 'round.  And with that Microsoft is set to roll-out TV-like advertising for Xbox LIVE, with 15-30 second spots set to run across the TV and video apps.

"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," said Ross Honey, general manager of Xbox LIVE Entertainment and Advertising at Microsoft. "As more and more industry leaders like ESPN work with us to help monetize their content on Xbox LIVE, TV media buyers win with the ability to extend their standard TV spots to this highly engaged consumer audience."

Since 2010, advertising spending on Xbox LIVE has increased by 142%.  Why?

Because Xbox LIVE Gold members in the U.S. spend 84 hours a month, on average, using Xbox LIVE entertainment apps – more than double the time year over year.  For the first time on Xbox LIVE in the U.S., entertainment app usage has surpassed online multiplayer gaming, the company announced.

"When we began offering ESPN content on Xbox LIVE in 2010, it was an entirely new way for fans to interact with ESPN. These new advertising opportunities will give clients a new way to interact with those fans," said Eric Johnson, ESPN's executive vice president of multimedia sales. "The Xbox LIVE platform offers a TV experience with the accountability and interactivity of the Web — all while reaching the right audience at the right time."

ESPN, CBS, GameSpot, Last.fm, Manga Entertainment, and MUZU.TV are the latest to become advertising partners on Xbox LIVE. Microsoft didn't say when these advertising spots would begin, but I'd venture to guess sooner rather than later.