Thursday, May 04, 2006

Microsoft unveils more details about AdCenter and how they plan to battle Google

Microsoft today unveils more details about AdCenter, their new targeted ad system, and how they plan to battle Google in the war for online advertising dollars. And it looks like one of their core differentiators will be inserting the targeted advertising generated by the AdCenter system into a range of digital services beyond internet search.

So AdCenter will drive online ads across PC's, games consoles (the Xbox) and mobile phones presumably carrrying Windows Mobile. This could prove a canny differentiator even though ad revenues on devices other than PC's is paltry and Google should be able to follow suit reasonably soon.

But, Microsoft have now got their Google me-too infrastructure in place. They have the portal (MSN), they have Live!'s search technolgy which is performing well and spreading fast and now they have their advertising system called AdCenter.

And all of them are being stress tested and show cased at MSN. Lets now see what Microsoft can do with their Google copycat infrastructure, but if I was Google or Yahoo I would move like lightning to both innovate ahead of Microsoft and take them on at their own game - i.e. launch consumer software which is free, ad suppported and challenges Microsoft's core franchises such as Office and Outlook.

Let's see, but the battle for search, online advertising and portals has just got another mean player. And we all know what happens when Micrisoft enters a market in a big way (the EU tries to stuff them! - na, just kidding!). Beware everyone!

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