Microsoft Aims To Be In "Top Two" Of Web Advertising

Microsoft aims to be one of "top two" in Web advertising, reports a Reuters article.

At the UBS investor conference, Kevin Johnson, Prez of Microsoft's platforms and services division laid down the company's plan to become a leader in the growing online advertising industry with a "10, 20, 30, 40" plan. These are the company's aspirations and these aims include:

• to increase the company's share in Web search,
• to increase page views,
• increase percentage of time on the Internet and
• increase percentage of advertising dollars.

It was when Microsoft bought aQuantive for $6 billion that the company conveyed seriousness about their aspirations. During a Q & A session with UBS analyst Heather Bellini, Johnson also said, "If you look at the landscape of other competitors or other companies in this area, not only do we have the technology, research and development capability to deploy, but (we have) our willingness to invest for the long term."

Some of the highlights of Johnson's Q & A:

• the company's investments in data centers and servers will range between $1.5 billion to $1.7 billion this year.
• Under the "10, 20, 30, 40" plan, Microsoft wants its Web sites like MSN.com and Windows Live e-mail to comprise 10 percent of all Internet page views from about 6 percent now.
• Microsoft's plan is to raise its share in online search to 30 percent. In September, Microsoft's search market share was about 10 percent.
• Microsoft has worked to improve the relevance of its Web search results and how it presents that information, but the company has failed to close the gap on Google and Yahoo
• Finally, Microsoft aims to capture 40 percent of all dollars coming through digital advertising platforms compared with around 6 percent now.

Great aspirations indeed. It will be interesting to see their market share next year and see how they do.

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