Microsoft Looks To Disrupt TV Advertising With Kinect NUads
Microsoft (NASDAQ:MSFT) has been working on ads powered by Kinect’s motion gesture-based technology for almost a year, and the Kinect NUads will finally hit the public this fall. Microsoft has already signed up advertisers like Toyota, Unilever and Samsung for Kinect NUads, which enable viewers to respond to survey questions after their ads are displayed using voice commands or motion gestures on their Xbox 360. ((NUads launch on Xbox LIVE with Toyota and Unilever & Samsung Mobile USA, Technet))
Check out our complete analysis of Microsoft
While it is quite innovative, we’re not sure whether it will actually work once the novelty factor wears off. It does make the TV advertising medium more interactive and engaging, and may be able to attract more ad dollars from advertisers, but there is also a good chance that it may annoy users and cross the thin line between interactive and intrusive.
- Up Nearly 70% Since The Beginning Of 2023, Where Is Microsoft Stock Headed?
- Up 63% Since The Beginning Of 2023, How Will Microsoft Stock Trend After Q2 Earnings?
- Microsoft Stock Is Up 45% YTD And Outperformed The Consensus In Q1
- Microsoft Stock Outperformed The Expectations In Q4
- Microsoft Stock Is Fairly Priced At The Current Levels
- What To Expect From Microsoft Stock In Q3?
In any case, if this new interactive ad format takes off, Microsoft could generate a not-so-insignificant amount of revenue from Kinect NUads in coming years. Television ads haven’t seen much improvement in the last couple of decades. Microsoft may have something really huge on its hands with this format.
We currently have a $40 Trefis price estimate for Microsoft, which stands nearly 30% above its market price. Microsoft competes primarily with Google (NASDAQ:GOOG), Yahoo (NASDAQ:YHOO) and Facebook (NASDAQ:FB) in the advertising space.
Understand How a Company’s Products Impact its Stock Price at Trefis