TELECOM Digest OnLine - Sorted: Microsoft Starts Selling Paid Search Ads on MSN

Microsoft Starts Selling Paid Search Ads on MSN

Reuters News Wire (
Mon, 26 Sep 2005 17:34:11 -0500

Software maker Microsoft Corp. on Monday said it would start selling
paid search listings, which allow advertisers to purchase advertising
space alongside search results on its MSN Internet site.

The widely expected move comes as Microsoft, the world's largest
software maker, continues to take on Google Inc. in the Web-based
information and services market.

At stake is the lucrative income from online advertising, particularly
ads that are displayed next to search results, the main driver of
search leader Google's revenue.

Microsoft, which previously signed up advertisers via Yahoo Inc.,
launched the paid search service called adCenter in France on Monday
after beginning in Singapore on August 31. U.S. testing of adCenter is
set to begin in October.

Microsoft's paid search system allows advertisers to indicate whom
they want to reach based on criteria such as geographic location,
gender, the subject of their search and helps advertisers estimate the
cost of their ads.

According to research firm JupiterResearch, Internet search
advertising is set to overtake more commonplace online banner
advertising by 2010, as online sales double to $18.9 billion.

Growth in search-based ad reflects both rising advertiser confidence
in the market, as well as the sophistication of software technology.

Copyright 2005 Reuters Limited.

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