Microsoft today unveiled plans to share a percentage of
in-game advertising revenue from MSN Games
with its casual game developers. Funds will accrue monthly, with developers
sharing a percentage of the gross revenue received from the advertisements
shown during online gameplay for their titles, including ads served during the
loading screens at the start of a game or in between levels, as well as ads
placed in or around the game window during gameplay.
Microsoft estimates that the developers of the
five most popular titles on MSN Games participating in the Ad-Share Program are
likely to share nearly $250,000 annually, based on current in-game advertising
revenue rates.
“Casual game developers traditionally operate on a limited
revenue model, typically receiving a set fee from downloadable titles or a
small royalty associated with game subscriptions,” said Chris Early, studio
manager for Microsoft Casual Games at Microsoft. “Now, by sharing in-game
advertising revenue, we’re allowing a more diversified business model that
gives our partners more resources to create new, innovative titles for the 13
million people we see every month on MSN Games.”
The newly launched program offers casual game developers
advertising revenue incentives at two levels. The first level requires little
to no change in the development and submission process and offers developers 10
percent of the total in-game advertising revenue generated by their titles. The
second level offers developers an increased advertising revenue incentive of 20
percent and requires a few additions to the game development process, such as
localization, ESRB ratings and the creation of a “deluxe” game experience that
offers players at least 10 hours of free Web-based gameplay.
The additional criteria for the second tier aim to encourage
the creation of better games that offer a longer gameplay experience. Longevity
of visits and engrossing content are attractive factors to online advertisers
looking for innovating new methods of reaching their target audiences.