Microsoft Announces Entry Into the Search Ads Game
It was just a matter of time.
Microsoft announced today that they will be selling contextual ads on the MSN network of sites. Microsoft is late to the game once more, as they have virtually ignored web search. But with Google’s enormous profit margins resulting from AdWords/AdSense in their scopes, the giant is awakening to the possibilities.
Presently, Microsoft’s ads are sold by Yahoo!, but they hope to phase out their competition by spring 2006.
Microsoft intends to match many of Google’s features and add some new twists of their own. Since they have the ability to deliver ads according to demographics and time parts, Microsoft has a definite advantage in targeting.
Imagine this. A woman searching for “books” might be directed to ads for the latest romance novels, while a man searching for the same terms might see ads for books related to sports. The possibilities are mind-boggling, and you can be sure Microsoft is looking at this from every possible angle. How can they best serve the consumer and advertiser by pairing them up on the fly?
Microsoft says they will start using the system on their sites in France and Singpore. The United States will by next, possibly before the year is out.
But what excites me most is their plans to sell ads on sites outside the Microsoft network. Hello MicroSense!
With Yahoo Publisher Network still in Beta and Google currently ruling the roost with AdSense, the battlefield will soon have soldiers from three armies battling it out for their piece of the contextual advertising pie. In the free marketplace, this competition can only bode well for advertisers, publishers and consumers alike.
Bring it on!
