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Xbox Beats Ipad
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Xbox Beats Ipad

by Pace Lattin2012-05-13

MultiChannel News: Microsoft’s Xbox 360 was the top non-PC platform for viewing professional digital video content and ads in the first quarter of 2012 — beating out iPad, iPhone and Android devices — although such gadgets represent only 4% of total online and mobile views, according to ad-management firm FreeWheel.

Xbox captured 28.2% of all non-PC/Mac video viewing in Q1 2012, versus the iPad at 27.1%, FreeWheel found.

Given that the Xbox has higher penetration (26% of all U.S. households, according to Nielsen) than iPads (15%) — and combined with the recent content deals Microsoft has struck with Comcast, HBO, Epix, YouTube and others — “it is likely that Xbox viewing volume will continue to increase,” FreeWheel said in its Video Monetization Report – Q1 2012.

FreeWheel Q1 non-PC video viewing shareMicrosoft last month expanded its advertising program for the Xbox 360, which lets content owners place 15- and 30-second spots in video content on the Xbox Live subscription service, adding ESPN and CBS Interactive’s GameSpot and Last.fm to the network. The new ad features were enabled via an Xbox 360 upgrade in December. The Xbox Live subscription service counts nearly 40 million active members worldwide.

Still, non-PC/Mac viewing now comprises about 4% of all professional digital videos viewed, up from 1% in Q1 2011, according to FreeWheel. Moreover, monetization rates are lower on Xbox, iPad and other devices: Content viewed on PCs had nearly one video ad for each video view across all content lengths, whereas Xbox and iPad are well behind that at 0.31 and 0.40 video ads per video view, respectively.

“Video viewing volume on the Xbox and iPad may be on the rise, but the optimal monetization of these alternative devices still has room to grow,” FreeWheel said.

Meanwhile, overall video ad loads in the first quarter showed no seasonal dip from Q4 2011, which FreeWheel said has historically occurred because of lower volumes of retail advertising and fewer product introductions in market at the beginning of the calendar year.

Another key trend in the first three months of 2012 was that mid-roll ads grew at a much faster clip than pre-roll ads, increasing in Q1 by 115% vs. 45% year-over-year, respectively, FreeWheel said. That indicates that additional long-form content is coming online overall and that publishers are making more mid-roll inventory available, according to the firm.

“The pre-roll was once considered the de-facto standard for digital video, but the increase in advertiser usage of mid-rolls is showing the high value of ads that live within pods between segments of professional content,” FreeWheel said in the report. Mid-rolls now comprise 23% of all video ad views, up four percentage points from Q4 2011.

The data in the report is based on ads FreeWheel served on behalf of its clients. The firm served over 8.7 billion video ads in Q1 2012 and made ad decisions for over 11.6 billion video views. The report is available to download here.

About The Author
Pace Lattin
Pace Lattin is one of the top experts in interactive advertising, affiliate marketing. Pace Lattin is known for his dedication to ethics in marketing, and focus on compliance and fraud in the industry, and has written numerous articles for publications from MediaPost, ClickZ, ADOTAS and his own blogs.
7 Comments
  • 2012-05-13 at 10:20

    interesting that IPAD has only 15% market penetration but was only a percentage point under XBOX for views.

    This could mean that the future is bright for IPAD.

  • 2012-05-13 at 18:38

    I’m a huge Xbox fan, and I can see why they have such a huge chunk of the market. I have both the Xbox and the iPad, but I spend a lot more on Xbox addons than I do on my iPad.

  • 2012-05-13 at 22:43

    I never tried using both gadget, but I am quite impressed about this article, because it talks about that Xbox seems to be enhancing than the i-pad, maybe because about their feature they are not the same.

  • 2012-05-15 at 12:59

    “Video viewing volume on the Xbox and iPad may be on the rise, but the optimal monetization of these alternative devices still has room to grow,” FreeWheel said.

    Yes ,i agree as innovation doesn’t stop

  • 2012-05-16 at 01:29

    Wow is this real that Xbox beat Ipad? for me I dont think so because Xbox those not have a browser for internet, xbox only have a internet game connection..

  • 2012-05-18 at 07:40

    8.7 billion video ads sounds very impressive and says a lot about its usefulness

  • 2012-08-31 at 08:21

    Ever since the Dashboard update i cant get anything M rated… even tho all my settings have everything allowed it wont work so i can download it can anyone help me out??

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