Blog Post

Microsoft’s Ad-Supported Pitch

News.com has a good analysis pitch on Micrsoft’s recent retooling of its online efforts, based on free, ad-supported services, including MSN and Live.com.

of course, the business model: it’s betting on personalization as the way to boost its online ad sales. The centerpiece of the strategy on AdCenter–a tool that Microsoft has been developing for more than a year as a way to serve up ads tailor made for the user that is receiving them.

Microsoft is hoping it can leapfrog its rivals Yahoo and Google by combining that information with demographic details on who is doing the searching. For now, ti is text-based, but Joanne Bradford, Microsoft’s chief media revenue officer said: “We believe in the future it will be about display (ads), video and all that is advertising.”

The next goal for AdCenter will be to serve up display ads for Windows Live and Office Live. From there, Microsoft has its eyes set on sending ads to mobile devices and Xboxes.