After Microsoft sold majority of its advertising business to AOL last month, many believed Microsoft to be written off the ad market. However, in what is being seen as a strategic move, the internet giant announced a host of new capabilities, on Tuesday, aimed at increasing ad revenue for app developers on the Windows platform.
Microsoft wants to integrate video interstitials to boost app monetization. According to eMarketer, industry-wide, Cost per mille (CPMs) for video ads are significantly higher than standard display. “The Microsoft Universal Ad Client SDK supports video interstitials, which is especially useful for monetizing gaming apps given the opportunity to show video ads between levels,” said Vijay Rajagopalan, Director of Engineering & Product Management for Windows & Developer Monetization at Microsoft in a statement.
“Thousands of apps in the Store today are using Windows ad mediation to increase ad revenue in Windows phone apps. Ad mediation allows you to manage multiple ad SDKs from different providers, including Microsoft Advertising, and get up to 99 per cent fill rate in many cases. Now you can leverage Windows ad mediation on tablet and PC apps, too. And because the Microsoft Universal Ad Client SDK is integrated in Windows ad mediator, integrating the universal ad SDK and taking advantage of mediation is a simple drag-and-drop in Visual Studio. Windows ad mediation serves banner ads; it does not yet serve video interstitials,” he added.
Microsoft is working closely with the Visual Studio team to re-release our SDK as a framework package. “For those adopting this first release of the SDK, note that it still contains redistributable binaries, but you should expect a mandatory upgrade in the next few months to move to the framework code. After that your app will be able to take advantage of upgrades to the advertising runtime without resubmitting to the store,” Microsoft said in a statement.
The ads come from providers like Google AdMob, AdDuplex, and its own Microsoft Advertising. Microsoft says that it gives 70 per cent of the net ad revenue to developers, backed up by its relationship with advertisers.