Microsoft Wins Viacom Ad Deal From DoubleClick

[engine]

Microsoft and Viacom today announced a multi-year content and advertising partnership. Under the deal, Microsoft will become the exclusive seller of remnant display ads on Viacom's Web sites. ("Remnant" refers to ad space that Viacom cannot sell through its own sales force.) In addition, Microsoft will use technology from aQuantive, which it recently bought, to serve ads on Viacom's Web sites; it will buy ads on Viacom's online and broadcast networks; and it will license Viacom content, on a nonexclusive basis, for use on outlets like MSN and the Xbox 360.

These kinds of online advertising and distribution deals have become important markers, especially when they involve major companies and have large dollar figures attached to them. Microsoft and Viacom are certainly major companies, and while they didn't disclose detailed financial terms, the companies pegged the "base value" of the deal at approximately $500 million over five years.

Microsoft Wins Viacom Ad Deal From DoubleClick [bits.blogs.nytimes.com]

[WiseWebDude]

Oh man, that was Bill kicking Google in their nads right there. Let the war begin, LOL.

[trinorthlighting]

This is not going to pan out well at all with the whole YouTube suit going on.

[drall]

The giant has awoke from his slumber. First Facebook, now this....

[europeforvisitors]

Oh man, that was Bill kicking Google in their nads right there.

I doubt if the kick was too painful. After all, Microsoft just demonstrated what the FTC has already concluded: that there really is competition in the marketplace, and Google's acquisition of DoubleClick doesn't violate antitrust laws.

[WiseWebDude]

That's true, europeforvisitors. I think it was more of a "watch your back, suckers" type of warning to Google. But, like you said, it actually might help Google pass the EU's scrutiny now. I am really surprised that Microsoft hasn't done even more yet...I think that once Microsoft quits sneering at Google and starts to take them serious...the real war will begin as Microsoft still has a lot of resources and reach...

[Harry]

I'm seeing this in more general and long term business view that Microsoft just "stealing" a customer away from Google. This realignment is more than just a business deal. It's also a statement of intent about how some of the powerbrokers see the future of business and their views.

Microsoft and Viacom are both aligned to control the medium as much as possible and bind customers in a reclusive setting where they can't escape from - for example, their respective push and opinions concerning copyrights laws.

Whereas Goggle and many others represent a more laisser faire approach to business where even if they consolidate, they believe that information should flow through without borders - hence organizing the world's information - which is diametrically opposed to how Viacom and Microsoft see the marketplace.

It don't believe this deal is a loss for Google, as a deal with Viacom, besides the weight that this media group carries is a deal with a backward way of handling information and distributing it to the masses.

I'm glad that all the bad guys are on the same side now...

[edited by: Harry at 4:27 am (utc) on Dec. 28, 2007]

[JS_Harris]

Google has little room to grow, Microsoft has a lot of room to grow. The dollars are changing hands, lets see what bill does with more and Google with less. Great stuff.