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'Microsoft's After Google's Ad Business'

 4:50 pm on Apr 26, 2007 (gmt 0)

Microsoft may be older and bigger than Google, but it's Microsoft nipping at Google's heels and not the other way around, according to two Gartner analysts who closely follow the moves of the companies.

By offering free Web-based productivity applications, Google is looking for an additional vehicle for advertising revenue and trying to distract Microsoft from focusing on its own core search advertising business rather than hoping to grab Microsoft's big corporate IT dollars, David Smith, a vice president and Gartner Fellow at research firm Gartner, said during a session at the Gartner Symposium ITXPO conference here on Wednesday.

Microsoft's After Google's Ad Business [news.com.com]



 4:57 pm on Apr 26, 2007 (gmt 0)


While Google has been the king of contextual ads, that doesn't mean someone else can't take over one day...

G takes a big chunk of the pie. Giving a higher percentage of the revenue while finding a way to attract huge quantities of advertisers would be the way to break their market share.


 5:53 pm on Apr 26, 2007 (gmt 0)

advertising is easy to lose...all they need to is type msn instead of google. Of course, msft needs to produce results.


 6:27 pm on Apr 26, 2007 (gmt 0)

"The days of the most influence of Microsoft are in the past...they are no longer a company that everyone is afraid of..."

The analyst is underestimating Microsoft's latest patent deals [news.zdnet.com...] and upcoming lawsuits.

The analyst is also underestimating the release of Windows Vista and Internet Explorer 7. Since then, I've seen in my Web statistics Google's usage declining and Yahoo-MSN gaining more.

Analysts should not forget what Bill Gates said in 1991: "You have to know when to hold back. If the takeoff curve in something is very gradual, then the early guys who pay extra money and take extra risk aren't protected."

Was Gates referring to guys like Sergey Brin and Larry Page?


 12:30 am on Apr 27, 2007 (gmt 0)

Microsoft never did anything new, they've always capitalized on other people's ideas. That is the definition of the company. Nothing new here.


 1:00 am on Apr 27, 2007 (gmt 0)

MSFT Fiscal Q3 profit rises 65% [marketwatch.com]

With those kinds of numbers you'd think they were in the search advertising market. Obviously DCLK was easily within reach but MSFT must have seen something better to invest in.


 7:39 am on Apr 27, 2007 (gmt 0)

and Google took text ad the idea from goto.com...so what?


 8:11 am on Apr 27, 2007 (gmt 0)

If MSFT wanted to lock in the user to their Ads they could achieve it overnight.

Why don't they?.....go figure....I would, If I were in their position!

They are obviously playing a more cunning role...I assume.....or maybe they are just stupid!?

They might be scared.....he who owns the browser owns the Internet.....

They might be slow playing their aces.....Poker players will be familiar with this stategy!

The financials might not add up to MSFT......

It worries me a tad...why don't they move....they know something I don't......that has to be scary to any competitor!

If I was a competitor to MSFT right now I would be panicking......why the heck aren't they declaring war? They must have an end game I can't see?


 9:24 am on Apr 27, 2007 (gmt 0)

>> The financials might not add up to MSFT......

first, they need the traffic to deliver the goods. Second, they will take a loss by paying a lot more than G for a year or so.

But then MSFT skipped on deal with aol, doubleclick, myspace so, I am not sure. I mean skipped since they had the cash to outbid google.


 12:07 pm on Apr 27, 2007 (gmt 0)

Microsoft is making a lot of money selling software. They are happy Google exists because now Google is the bad monopoly, and they can continue their business without being seen as the bad guys. MS has the technology, has the same service as Google, and when the time will come, they will put all the resources to fight Google.


 4:45 pm on Apr 27, 2007 (gmt 0)

If Microsoft's further entries into the advertising market are anything like adCenter, then Google doesn't have much to worry about.


 6:17 pm on Apr 27, 2007 (gmt 0)

then Google doesn't have much to worry about.

I seem to recall hearing that statement with different names before.

Lotus 123
Word Perfect
Electric Pencil
Apple (my logs show 4-6%)
Radio Shack (TRSxx)
and list goes on...



 6:34 pm on Apr 30, 2007 (gmt 0)

Microsoft never did anything new, they've always capitalized on other people's ideas. That is the definition of the company. Nothing new here.

Very true. However, as already noted, Google is not much different.
The most of their (childlish) patents are nothing but a particular way to do things (e.g. rankings), which don't have to be superior or ultimate. It's just their way.

The key of their success is the simple trust, which was almost extinct in the corporate world.


 9:02 pm on May 4, 2007 (gmt 0)

...Microsoft nipping at Google's heels ....

Uh, no..... they're scrounging for scraps at Google's dinner table.

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