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Microsoft’s Unique Position In Online Advertising: We’re Desperate

Well, it didn’t exactly say that, but almost. In an internal e-mail by Kevin Johnson, president of the company’s Platforms & Services Division, right before its Advance 08 conference, the company says Brian McAndrews will “highlight our unique position in the advertising industry.” If by “unique” they mean willing to do and say anything, well..

Among its “four pillars” going ahead:
1. Consolidate ad platform and win in display
2. Innovate and disrupt in search
3. Deliver end-to-end user experiences across PC, phone, and web
4. Reinvent portal and social media experiences

This part finally acknowledges one part of the mess: “Fix our online branding – Our brands are fragmented and confusing today, and we recognize a need to clarify and align our online branding. We are now driving forward to address this opportunity.” The company is also looking at further smaller acquisitions in the online advertising space.

As for what will actually be announced at Advance 08: “On Wednesday, we will be announcing a major new initiative that our search teams have been driving. We are getting better and better with our core algorithmic search, and at the same time, we are investing to differentiate in vertical experiences and to disrupt the current model.”

It also mentions that MSFT is in talks with Yahoo (NSDQ: YHOO) again, on an alternative transaction.

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May 18, 2008 8:09 PM ET
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Posted In: Advertising, Companies, Microsoft, Yahoo

  • Microsoft's properties are indeed scattered and confusing, but the properties are high quality. The challenge Microsoft faces, like man other publicly traded companies, is that they must continue to "increase shareholder value" which has cause MS to lose focus in some areas. My advice, for what it is worth, is to rapidly web-enable the office suite in its entirety and offer it for free online. This would be an ad supported platform but would leap ahead of Google Docs and other competitors in the space. They would definitely make more money per seat than they do now. In addition I would recommend a very light version of Windows built exclusively for web access. Then "bundle" it with rich integration with web apps like office and complimenting solutions like Flickr.

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