Microsoft may introduce ads to free-to-play Xbox games

Microsoft is developing an ads program that will allow brands to display ads in free-to-play Xbox games, according to a report in Business Insider. The program aims to expand Xbox’s limited ad inventory by adding games capable of hosting ads. This will allow developers to offer advertising space on the Xbox platform. One way that advertisements may appear in these games may as billboards that are digitally rendered in racing games.

Microsoft coming with ads for the Xbox games

Then, a company spokesperson told Business Insider, “We are always looking for ways to improve the experience for players and developers but we don’t have anything further to share.”

Insider has reported the fact that Microsoft is aware that the introduction of ads in games could cause a lot of bothersome to players. And that’s why it is taking a cautious approach to the idea. It is planning to establish an exclusive marketplace in which only a select group of brands will be able to purchase ad space and show ads in a way that doesn’t interfere with the game.

Also, according to the sources, Microsoft isn’t planning to take the revenue from ads and instead is concentrated on expanding the Xbox advertising network. One of the sources suggested one reason Microsoft isn’t keen on taking the revenue from ads is that it wants to provide developers of free-to-play games more chances to earn profits.

If the program is launched, Microsoft will get an advantage in its digital advertising program. In December, Microsoft purchased Xandr the AT&T’s advanced advertising platform, for around $1 billion. The aim of the purchase was to bring together Xandr’s huge database of data analytics with Microsoft’s vast advertising customers.

Microsoft is constructing its ad-tech infrastructure to rival the likes of Google, Amazon, and Facebook According to Shiv Gupta who is the managing partner of U of Digital, an online marketing education site for digital platforms.

He said: “In-game advertising on Xbox is a very unique way to get onto the most valuable advertising real estate in the household, the large screen TV, and it is meaningfully differentiated from the competitive ‘pre-roll around streaming content’ play that the Googles, Amazons, and Rokus of the world are making.”