Microsoft acquired Massive Inc. to establish a presence in the in-content advertising market
Microsoft announced on Thursday that it will be closing the rumored purchase of New York based pioneer of video game advertising Massive Inc.
Microsoft did not disclose the financial details of the deal, but
analysts have estimated the sale to be worth between $200M USD and $400M USD.
This acquisition
widens Microsoft’s advertising distribution strategy by providing
focused means of reaching the interactive online gaming demographics.
According to Joanne Bradford, corporate vice president of Global Sales
and Marketing and chief media revenue officer at Microsoft “Advertisers
are having a tough time connecting with the elusive 18 to 34-year-old
male demographic because this group continues to spend less time
watching TV and more time playing video games. Massive and Microsoft
can help lead with our shared vision of delivering more targeted,
measurable and effective opportunities for advertisers to reach today’s
youth audience in a largely untapped market.”
Massive’s
technology allows for dynamic advertising to be placed in individual or
group online video games. These ads often appear similar to product
placements used in Movies, TV shows and video games with advertising messages on
billboards, soda cans, background posters as players navigate
through the virtual gaming landscape. This technology will place
relevant ads and have obvious applications in the Xbox 360, Xbox Live
and MSN games environment. Microsoft is also exploring Massive
Technologies applications with online environments such as Windows Live
and MSN.
"If a man really wants to make a million dollars, the best way would be to start his own religion." -- Scientology founder L. Ron. Hubbard
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