Microsoft's adCenter Plans to Beat Google and Yahoo with Contextual Advertising Combined with Demographics

Microsoft has been predicting for a long time that the future of software will be online Web Services where people access the software they need online rather than installing it on their computer.  Microsoft's .Net platform is supposed to provide the development platform to allow such Web Services.

People have speculated equally long as to how Microsoft will then make money from these Web Services.  Would they require subscriptions?  Micropayments per use?  Or what?

A new article on MarketingVOX may hint at Microsoft's plans.  Apparently Microsoft plans to make their money from advertising.  MarketingVOX reports that Microsoft's plans depend on their being able to generate ad revenue via their adCenter service, which is still in beta.

To succeed at their long-term vision, Microsoft must draw advertising dollars away from Google and Yahoo.  According to CNET, Microsoft plans to do this by offering superior targeting of ad content by gender, age, ZIP code, time of ad delivery, etc.  Microsoft plans to combine contextual advertising targeting (what is being read) with demographic details known about the given web surfer.  Their goal is to target ads so well that users view them as relevant content rather than an annoyance.

Yahoo is likely to feel the financial sting first, as they currently supply most of the keyword-related search ads to MSN.  According to MarketingVOX, the goal for the current trial of Microsoft adCenter is to generate up to 25% of MSN search results - and they are apparently nearly there.

Read Microsoft's Online Future Revolves around adCenter at MarketingVOX...