Online advertising trends

“Microsoft’s Online Services division, which includes the online portal MSN and its Internet advertising sales, lost $575 million in the first quarter of 2009, and sales in the division were down 14% from the same quarter a year earlier.”

via Microsoft’s profit sinks 32% – Apr. 23, 2009 .

Did you see the latest numbers from Microsoft Online Advertising Revenues? I still don’t get it. How is it possible that a company like Microsoft cannot come up with a software which is a real rival to Adwords? (knowing that Adwords system is much simpler than most of Microsoft’s software and Adwords has still a lot of areas for improvement)

I am not sure whether Microsoft has the right team to tackle this issue. I believe a healthy competition in this area would be very beneficial for both publishers and advertisers.

On a second thought; the only party which will not benefit from this competition is USA. But we are living in Obama times now, hopefully, we might even see a Microsoft with a good advertising foundation.

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