Your Next Media Buy – Xbox?

If there’s one thing I’ve learned in the last few months, it’s the importance of the almighty video.  We all know the impact videos can have in the online space, but now videos are starting to make a more significant presence in game consoles too.  In fact, a recent New York Times article identifies the increase in video and other content supported through gaming consoles like Xbox – enough to potentially set itself up as a serious competitor to the traditional cable buy.

It’s no surprise that Xbox Live, Microsoft’s subscription service for its gaming console, offers its 20 million members the ability to surf Facebook, watch TV episodes and for an extra fee, the opportunity to view videos from Netflix (Netflix also streams their videos to Sony PlayStation and recently Nintendo Wii).  Xbox Live also has a hit interactive game show “1 vs 100” (currently in its 2nd season) and offers :15 and :30 commercial spots.

Microsoft has ambitions to bring even more programming content to Xbox Live’s Marketplace on the Web.  Rumors are swirling that Microsoft and Disney are in talks to stream ESPN videos to the Xbox 360.  This move would make Xbox one step closer to becoming a major outlet for the all around entertainment experience, rather than just a gaming system.

So this brings me to the important question – How does Xbox’s imminent expansion into a mega media portal affect the ways in which we think about our strategic media plans? First things first, how do the stats compare?  Mark Kroese, with Xbox advertising sales, says Xbox advertisers were “very interested in being able to compare the media buy on Xbox to other media buys they do.”

Currently, there is no 3rd party tracking system in place to accurately measure Xbox Live users who are watching videos versus those that are partaking in their favorite game.  However, Microsoft says the user count is more than a million at any given time.  According to the article, this number is comparable to top cable channels like TBS or Cartoon Network.

Through Xbox, advertisers can still reach their audiences in their livings rooms, but now in a whole new way and with endless possibilities of interaction.  A cable TV spot cannot accomplish the level of engagement and interaction that could be possible in this medium.

It’s not yet clear how or if gaming consoles like Xbox will be able to shift media consumption patterns.  But it is clear that streaming video content is finding a home in these systems and so might our desired audiences.

If you have questions about the trends of media buying, contact us today to learn more.

Flickr image courtesy of mastermaq.