Tuesday, June 28, 2011

Failed Marketing Campaigns: NuAds


It seems that Microsoft advertising team has been scrambling for ways to increase revenue by introducing new forms of advertisements in XBOX and XBOX Kinect.

Called NuAds (Natural User Interface Advertisement), Microsoft is attempting to engage consumers with the advertisement. You can view the video here:




This campaign, judging from the “5,681 dislikes” vs the “185 likes” on Youtube, was an embarrassing failure for Microsoft. 

There are many reasons why this campaign may have failed to resonate with viewers:

  • The advertisers are treating the advertisement as content.

Consumers draw a strong distinction between advertisement and content. Microsoft’s marketing team seems to have forgotten that viewers will opt out of viewing ads whenever they are able, and resent advertisement they are made to watch.

  •          They are assuming viewers want to share ads with their friends

Very few advertisements (aside from viral videos) are interesting enough for viewers to wish to share them with their friends. Furthermore, no one wants to spam their friends Twitter feeds with advertisement, even if that advertisement is entertaining. I know that if my friends were sending me ads through Twitter, I would promptly stop following them. 

  •           Paying subscribers do not want to see more ads- no matter how creative they may be


I believe this reason is what prompted most of the Youtube ‘dislikes’. The campaign model is based upon increasing the amount of advertisement shown to paying subscribers—not the general public. Subscribers to XBOX-Live do not want to view more advertisement, and will resist any attempt to increase it, even if they made it more engaging/interactive. 

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