We got a new clue about Xbox's ad ambitions
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You've just set down your Xbox controller after wiping out the final boss.
Now, time for an ad! The folks at Patentlyze made me aware of a recent patent filing from Microsoft that hints at Xbox's in-game advertising ambitions.
The filing, published earlier this month, outlines a concept for a content management system that would detect appropriate breaks in streaming gameplay — like completing a level — to insert an ad.
Gamers could be rewarded for watching the ad with a credit that offers a set period of uninterrupted gameplay.
The usual patent caveats apply.
Companies like Microsoft file many patents, and they don't always materialize as products or indicate active business priorities.
Still, the filing offers insight into how Xbox thinks the next chapter of its nascent in-game ad business could play out — and includes some funky diagrams.
Vincent Tessier, CMO of the gaming company 52 Entertainment, said the patent indicates Xbox is taking a leaf from mobile gaming apps, where the " rewarded video " format is popular.
Rewarded videos are opt-in ads that offer viewers an incentive for watching, such as extra lives or in-game virtual currency.
They also command higher prices.
The average CPM, or cost per thousand impressions, for a rewarded video ad was around $19.63 on iOS in the US, versus $9.64 for interstitial ads and $1.30 for banners, per a May report from the online gaming platform Playio.
"They're trying to find low-hanging fruit," Tessier said.
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