Internet Salsa

Sunday, March 12, 2006

Microsoft is serious about adCenter!!!

It was Amazon.com who waited this long to get started in videos now its Microsoft who is trying to challenge/compete Google and Yahoo.

Based on the article by Daisuke Wakabayashi at Reuters, Microsoft wants to pocket large portion of "15 billion dollar US market for Internet Advertising." Microsoft is going to sell pay-per-click ads similar to that of Yahoo and Google with its new program called "Adcenter." The program was already announced last year but now they are serious about it.

Microsoft is planning to use the ads on Microsoft related sites, and can be beneficial for Microsoft since millions of people are already using its services such as hotmail, and messenger. However, it can be tough to challenge both Yahoo and Google. MSN's search engine is behind Google and Yahoo. MSN generated only $1.4 b compared to that of Google($6B) and Yahoo ($4.6b) in 2005.

Article also mentions that most of the "paid search ads" on Microsoft is handled by Microsoft. I m wondering how that will affect Yahoo when Microsoft wants to go solo.

But it can go in favor of Microsoft also since the online ad market is moving up as Microsoft's Bradford says "The online advertising market is growing at such a rapid pace and we want to participate in some of that, this isn't a winner-take-all proposition."

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