Is Microsoft running out of ads inside Windows 8 apps?

Microsoft has promoted its in-app advertising program to Windows 8 app developers for a while now as a way for those software creators to gain revenues without having to charge for their apps. Now it appears that those developers that depended on that in-app ad money have been seeing their revenues drop to almost zero in the past few weeks.

Comments from from those developers on the Bing Ads message board indicate that for the month of April they have seen little to no banner ads inside their apps. One of the most outspoken developers on this issue is Erkan Deveci, who releases apps under his company Deveci Games. In a article on ITWorld.com he stated that for the first 24 days in April, "We've had 60 million requests with only 160K filled."

In a statement, a spokesperson for Microsoft said that there are always "peaks and valleys" in the online ad business, and April happened to be a valley period as older campaigns ended and new ad campaigns start up. The representative added that Microsoft is "constantly making improvements for developers using our Advertising Platform" to make sure that there are fewer valleys to deal with.

Hopefully Microsoft's ad sellers can show evidence to companies there will be an audience for their ad banners inside Windows 8 apps that support those features. We have already seen an upsurge in new apps posted in the store in the last month, bringing the total number to over 65,000 apps.

Source: ITWorld.com | Image via Microsoft

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48 Comments

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buddy what are you talking about? There are no ads in the OS.

If your referring to ads in apps that are on a desktop computer, hate to break it to you, but have you ever been to a website before?

Nashy said,
Good. Ads in a main OS. Just another thing to add to the hatred of this OS.

Simple : no ads, no profit, no developers, no free apps.

I don't see a problem with not having ****ty Metro apps. But that's a different argument that has been done to death already.

I think they run out a long time ago, as soon as a new campaign starts up, there are so little adverts that everyone get served it, and its gone again, and you have no adverts. I haven't seen an advert on my app for quite some time, it is rather worrying. Being unable to monetize an application makes the platform very off putting, which is a shame, it looked quite promising.

And its true about April was bad, my app got 10x less advert revenue in April compared to March.

*insert comment about how Ballmer needs to be fired and some other own opinion about how to run microsoft as better company*

Guys, developers have not been making money on Windows in AGES. Only stuff like Adobe's CS suite and Stardock's customization stuff make money. At least developers have the opportunity to make money now, even if they don't make money, at least the opportunity is there, and it's possible because of Windows 8.

Retards.

FalseAgent said,
Guys, developers have not been making money on Windows in AGES.

What ?????
Lookup consulting companies, Microsoft partners, contractors, etc.

We the developers want to make money from Windows 8's App store, we want a proper framework (with the correct security permissions, like the one for Metro) so we can develop desktop apps that can be sold directly via the app store, today that is not possible.

The only people left using Windows are enterprises, and they do not like Windows 8, so developers like me complain and look for alternatives at the same time.

That is again Ballmer's ultra-stupidity

FalseAgent said,
*insert comment about how Ballmer needs to be fired and some other own opinion about how to run microsoft as better company*

Guys, developers have not been making money on Windows in AGES. Only stuff like Adobe's

Steam
nuff said.

techbeck said,
Do other platforms have this problem?

Growing pains? sure..

I'm willing to bet it won't be long though until Bing Ads / Microsoft Self Serve advertising is able to publish ads.. That's how they do Mobile advertising..

spudtrooper said,

Growing pains? sure..

Valley periods...what MS called it. Where some months are really good while others are not or where devs are making no money.

How does it compare to Apple's in-house advertising solution? If there's no baseline for this besides "everything went down", it's not a very helpful story.

This reminds me when Live Messengers and Hotmail would just shows ads for the service you were already in and using. Microsoft is a woeful ad company.

They have ad issues in their own apps, too. I've see the same Cadillac ad and one 15 second one with some twits in fur coats in Solitaire, Minesweeper and Mahjongg since Windows 8's release.

I'd prefer an app that I can pay for that's worth it over an ad-supported one anyway.

GreyWolf said,
I'd prefer an app that I can pay for that's worth it over an ad-supported one anyway.

I do as well. If the ads are intrusive, I block them. If I like the app, I will pay for it IF there is a paid version.

Wow, the big Windows 8 “success” is now hitting the third party developers too, who could‘ve foreseen that

I hope Microsoft shows something good in their upcoming developer conference, it took them 2 days to sell it this time, it took them a few minutes last year, and if they don't have anything new, they may never selloff the next developer conference.

Note: Windows 8.1 leaked is nothing new.

Maybe Ballmer should start by firing some stupid managers at Microsoft, the one who brought windows down, or fire himself.

john.smith_2084 said,
Wow, the big Windows 8 “success” is now hitting the third party developers too, who could‘ve foreseen that

I hope Microsoft shows something good in their upcoming developer conference, it took them 2 days to sell it this time, it took them a few minutes last year, and if they don't have anything new, they may never selloff the next developer conference.

Note: Windows 8.1 leaked is nothing new.

Maybe Ballmer should start by firing some stupid managers at Microsoft, the one who brought windows down, or fire himself.


Umm.. this is regarding Microsoft Advertising, not your perception of Windows 8. Get your facts straight buddy. If you understand how the marketing industry works, it's all about campaign management, and April is the 'transition' period typically which is what the article describes.

j2006 said,

Umm.. this is regarding Microsoft Advertising, not your perception of Windows 8. Get your facts straight buddy.

Absolutely, keep believing

Last year's //BUILD was mostly online, and there were only 1000 people who could get tickets. This year it is at the Moscone center. Except for last year's, PDC/BUILD would have between 8000-10000 people attend. If you have a very limited, short supply of tickets (like the fruit company did for this year's conference) then yes, they will sell out in minutes.

SoylentG said,
If you have a very limited, short supply of tickets (like the fruit company did for this year's conference) then yes, they will sell out in minutes.

Last year the fruit company had 5200 attendance, they have about 5000 every year, this year they sold out in 2 min , not sure how many, but I am amusing it did not change much.

Google IO sold out in record time as well, and they usually have 5,000

john.smith_2084 said,

Last year the fruit company had 5200 attendance, they have about 5000 every year, this year they sold out in 2 min , not sure how many, but I am amusing it did not change much.

Google IO sold out in record time as well, and they usually have 5,000

I did the math...Apple had about 6k tickets that were sold this year when they sold out. They also opened up more after that.

john.smith_2084 said,

Last year the fruit company had 5200 attendance, they have about 5000 every year, this year they sold out in 2 min , not sure how many, but I am amusing it did not change much.

Google IO sold out in record time as well, and they usually have 5,000

Your original comment was making fun of Microsoft, that they sold out last year in a couple minutes, and took 2 days to do it this year. The fact is, they had a very limited set of tickets last year in comparison. And when Microsoft conferences have about double the number of attendees vs. Google/Apple conferences, then there is not as big of a rush to reserve that spot.

Also, Microsoft does a lot more to help their developers vs. Apple/Google. Microsoft has a much bigger support system through MSDN than those could ever hope to have. So a chance to get some information, any information from Google/Apple will cause a stampede to get tickets.

SoylentG said,
Your original comment was making fun of Microsoft, that they sold out last year in a couple minutes, and took 2 days to do it this year..

I was not making fun of them, I was angry because they are destroying Windows and even us the developers are losing interest in it.

john.smith_2084 said,

I was not making fun of them, I was angry because they are destroying Windows and even us the developers are losing interest in it.

I am a developer, I have not lost interest, and I do not think they are destroying Windows. On WinRT you cannot run x86 apps, which is expected, but all the old apps still work perfectly fine on x86 processors. The new Metro apps provide another way for developers to distribute their apps, and if developers don't like it they can still distribute their apps the way they have for years. So how is this destroying Windows?

Balmer "developer, developer, developers can kiss my ***!

For developers, it is a REAL issues since they are lossing earning.

For the customers, MS promised 120k applications during the first 3 months however, the apps only reached half of the promised value. And for developers, MS promised profits but some developers earned a crappy sum of $5 during April (even top downloaders). And for advisers, MS asks an insanely amount of money for a campaign while with Google, everyone can start a campaign with $10.

Edited by Brony, May 2 2013, 6:26pm :

First of of the never promised 120k apps during the first three months. It was some loud mouth executive who made that promise and even with that he said 100k not 120k apps.

kinpin said,
First of of the never promised 120k apps during the first three months. It was some loud mouth executive who made that promise and even with that he said 100k not 120k apps.

But still, windows 8 does not reached it (and MS never denied this claim).

So in other words, the media who keep telling us contrary to actual numbers that Win8 is doing poorly, so advertisers did not buy many ads. But people actually are buying Win8, using Metro apps, and the inventory of ads was low, and they were depleted early on. While it is bad for the apps using advertising - I know I spent about a day last week investigating why ads were not showing for me until I found the referenced forum post - it just shows that to the contrary of all the hate Win8 and metro apps are doing well.

People are buying computers with Windows 8, few people except enthusiast are buying a Windows 8 disk or digital copy at full price. Many bought when it was only $14.99. I bought 4 at $14.99 just because.

Care to back that up with actual figures, or are you just using anecdotal evidence and believing that all people think and do the same as you? We saw increased sales by the Windows division from the latest reporting. We see, as in this case with actual numbers backing up the claims, that ads in apps demand is far out stripping supply by a factor of 375:1.

And you may wish to get together with the other haters around here to coordinate your arguments. You are claiming that only enthusiasts are using Win8, but according to people like warwagon et all, the enthusiasts are the people that hate Win8, and it is the people who do not know better who bought a new computer with it forced upon them who are using Win8. If you could have one consistent message of hate, that would be much better. K? Thanks.

SoylentG said,
the inventory of ads was low, and they were depleted early on. [...] it just shows that to the contrary of all the hate Win8 and metro apps are doing well.

No, the article stated that campaigns as a whole are in a lull and you can't deplete from ads that aren't there. There is nothing from this article that can show if metro apps are doing any better or worse than before.

There was not enough ads budgeted by the advertisers. If you were to listen to what some are saying, Win8 is a failure, a disaster, not one single person is using it, Mac computers are flying off the shelves compared to Win8 computers (something that one of the resident trolls said, and can be proven factually incorrect). Now if you keep hearing this over and over, would you budget money for Win8 ads, or would you put your money elsewhere? But we do have proof that those ad placements could have sold, with the 60 million requests as stated in the article. Yes, the advertising market is cyclical, but when there is that much of a disparity between the requested and served, then there is indication that the market vastly underestimated the demand.

Which is good - my app will be sent off this week for approval.

The only point I was trying to make is that you can't base the popularity of metro apps as a whole on the number of ads that aren't being fulfilled for a single app in a small time frame. With nothing else to compare it to the information just isn't there to support (or deny) what you're saying. For all we know there were (these are completely made up) 70 million requests for ads last month and 90% of them were fulfilled just because there were more campaigns to draw from. You would also have to factor in other things like the popularity of the individual app or if the ads are targeted at all or not.

contriver87 said,
The only point I was trying to make is that you can't base the popularity of metro apps as a whole on the number of ads that aren't being fulfilled for a single app in a small time frame. With nothing else to compare it to the information just isn't there to support (or deny) what you're saying. For all we know there were (these are completely made up) 70 million requests for ads last month and 90% of them were fulfilled just because there were more campaigns to draw from. You would also have to factor in other things like the popularity of the individual app or if the ads are targeted at all or not.

No, you can't say that #ads served == #users. However, you can make the link that the more ads served, the more users there are. The article states that one company had requests for 60 million ads. Do you think that there is one person who is trying to view all 60 million of those ads? I have not even heard of this company nor any of their products, but they are still getting 60 million ad requests, so there has to be a large number of people out there using their ads. An ad in a Win8 app can only be refreshed every 30 seconds. That equals 86400 ads max per user in one month (60 min * 2 ads/min * 24 hours * 30 days), and I doubt that is happening.

CSharp. said,

That explains a lot.

That I am smart to try to get my app in there, the first of its genre, on a store that is still in the infancy?

SoylentG said,
I am smart to try to get my app in there, the first of its genre, on a store that is still in the infancy?

I think you know exactly what I'm alluding to. Good luck with your app!

CSharp. said,

I think you know exactly what I'm alluding to. Good luck with your app!

That I am biased in favor of Win8? Because I have written iOS and Android apps also, so I must be biased towards them, also.

"Hopefully Microsoft's ad sellers can show evidence to companies there will be an audience for their ad banners inside Windows 8 apps"

Oh yes, who doesn't love ads inside their programs? …Anyone?…Anyone?…Bueller?

Tigurinn said,
"Hopefully Microsoft's ad sellers can show evidence to companies there will be an audience for their ad banners inside Windows 8 apps"

Oh yes, who doesn't love ads inside their programs? …Anyone?…Anyone?…Bueller?

Considering nobody wants to pay *anything* for their applications and games they better love ads. Developers don't build these things for fun.

I clearly have to add "warning: sarcasm" to most of my posts ...oh, and the last part "anyone? anyone? bueller?" was a reference to the famous movie "Ferris Bueller's Day Off"

Yeah, it's a big problem actually. I'm seeing this too. Seems to have started around April 1st. Unfortunately no other advertising company supports Windows 8, except AdDuplex and they aren't a monetization solution.

Plenty of ads available to serve on Windows Phone, though.

The way ads are displayed in Win8 apps doesn't make sense to me. Unlike WP8 which usually has a text ad at the bottom or top of the screen in all or some sections, Win8 usually places display ads all the way at the end of the app. Few people are likely to scroll all the way to the end of an app. I also have an issue with the way app layout works in Win8. It is inconsistent too, some apps move like pages flipping and other ones scroll like a sideways webpage. I don't like it either way, but the paged setup drives me nuts.

I think you're talking about the page flipping in the news app and New York Times app. that bothered me too at first, then I saw that if you zoom in, even just a little, it lets you scroll part way through a page if you want. the Microsoft news app doesn't allow zooming in articles anymore but other apps do.