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Microsoft to launch new adCentre to compete with Google

Microsoft’s Steve Ballmer is set to outline details of Microsoft’s plans to compete with Google and Yahoo for targeted, sponsored advertising. In the past Microsoft has used the Overture advertising network for most of its pay per click advertising feeds. Overture is now owned by Yahoo.

This form of advertising is paid for by the advertiser on a “pay per click” basis and typically works on a bidding system. The higher the advertiser bids the more likely they are to be the first featured advert in a list of advertisers bidding on the same search phrases.

It was rumoured that Microsoft where considering working with Yahoo to move forward with both advertising networks and search technology but this now seems unlikely after the time and money Microsoft have invested in search technology.

Microsoft have spent the last three years trying to develop a more effective algorithmic search engine so that they can compete more effectively with Yahoo and in particular Google who currently dominate the search engine market. The implementation of their own advertising network is the next step in this process.

It is believed Mr Ballmer will announce that in the USA the Microsoft search engine is to now be feed with adverts from Microsoft own advertiser network.

The main advantage to Microsoft in launching its own adCentre system is the potential to display these adverts outside of the traditional Search Engine environment. Microsoft’s software is present on a wide range of technology from The Xbox to Mobile phones which is something Google or Yahoo are not currently able to compete with.

04/05/06

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