Microsoft
has spent a good part of the last few years first ignoring and then making extremely tentative moves into the online
advertising world. Now the software giant is getting in the game and is
hoping adCenter is going to be big. With its demographic and daypart targeting capabilities, Microsoft is confident
adCenter will be a hit with advertisers. Despite having no doubts as to the attractiveness, the company is warning that
the investment they've made in the platform will negatively impact revenue for the rest of this year as well as in 2007.
One of the biggest hurdles it has to overcome is that for a long time now they've relied on technology from others for
search and ad delivery. The best hope Microsoft has is that, because of the targeting capabilities, advertisers will
view it as more of a surgical tool to achieve specific results.Microsoft's playing catch-up in online ad world
Microsoft
has spent a good part of the last few years first ignoring and then making extremely tentative moves into the online
advertising world. Now the software giant is getting in the game and is
hoping adCenter is going to be big. With its demographic and daypart targeting capabilities, Microsoft is confident
adCenter will be a hit with advertisers. Despite having no doubts as to the attractiveness, the company is warning that
the investment they've made in the platform will negatively impact revenue for the rest of this year as well as in 2007.
One of the biggest hurdles it has to overcome is that for a long time now they've relied on technology from others for
search and ad delivery. The best hope Microsoft has is that, because of the targeting capabilities, advertisers will
view it as more of a surgical tool to achieve specific results.Reader Comments
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1. Microsoft should learn from the success of Google Adsense. Google adsense is contributing good revenue for Gogle and more than that now the words Adsense or Adword have become buzz words in the Internet world. Microsoft will surely have to work very hard to do well in this market. However, with Hotmail, MSN and My space they have already a huge platform.
Posted at 6:17AM on May 4th 2006 by Razib Ahmed