Microsoft Preparing Challenge to Google and Yahoo for Ads
As more and more in-line text-based ads become common, the click-thru rate is going to fall - just like it did for the banner ads - and the companies will be forced to find something different and more intrusive - like Salon ultra-mercial ads - mandatory viewing before content is shown.
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Microsoft Preparing Challenge to Google and Yahoo for Ads
By JOHN MARKOFF
Microsoft is expected to offer a first look today at some features of a new advertising system on the MSN search engine, part of the company's effort to match the success of Google in the paid Internet search business.
The service, called MSN adCenter, is yet to be tested, but executives say it could allow Microsoft to catch up to the top two Web search engines, Google and Yahoo, in search-based advertising by creating a system with broader scope.
The executives said the MSN adCenter software would appeal to advertisers by giving them the ability to fine-tune their purchases based on audience demographics. For example, on a search results page, men might be shown ads different from those shown to women.
Microsoft now relies on the Overture service owned by Yahoo to place text advertisements on the results pages of the MSN search service.
The company says it generates about $1.5 billion annually from Internet advertising, though it does not publicly disclose how much of that revenue comes from paid searches on MSN ...
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