Microsoft sees success in Xbox LIVE’s NUads

Microsoft has plans to invest more into their NUad experience after seeing double-digit engagement results from Xbox LIVE users. These interactive NUads — or ads that engage the viewer through interactive polling — were rolled out earlier in fall of 2012 on Xbox LIVE in the U.S., Canada, and the United Kingdom. The first lineup of advertisers included Subway and Toyota; here's what they found.

A whopping 37% of viewers engaged with NUads when prompted with the option to vote, out of which 71% voted in the pole. A staggering 97% of those participants saw their vote included in the final tally of votes from the consumers who responded. In other words, the first wave of NUads has proven to be a success.

“When we launched NUads, we redefined the 30-second spot,” said Ross Honey, general manager of Xbox LIVE Entertainment and Advertising. “These results show that NUads is a real breakthrough in TV advertising, and you can expect more investment from us when it comes to this new ad format and video advertising in general.”

We are beginning to see the shift of advertising from passive reception to active engagement by consumers. NUads enable natural interactivity using the simplicity of a few spoken words or a wave of the hand. All advertisers need is a standard TV spot and a question in mind, as well as a few creative responses. The aggregated poll results can even inform future product development or ad campaigns. So far, advertisers seem pleased with the system.

“Consumers want a relevant and engaging experience when watching TV,” said Dionne Colvin, national media manager of Toyota Motor Sales, USA, Inc. “NUads was a new format for our advertising, but we saw an opportunity to try something new, and the results exceeded our expectations.”

Kathleen Bell, director of Marketing, Subway Restaurants in Canada said this: “We’re thrilled with the results of our first NUads experience. We’re always looking for new ways to engage with our fans and deliver a customized experience to them. Taking part in this exciting program has given us the ability to further target our audience and get real-time feedback from them through a new and interactive platform.”