MSN Advertising Up, More Investment Upcoming

  |  January 27, 2006   |  Comments

The company will continue to pour resources into developing its adCenter platform.

Advertising revenues grew 12 percent year-over-year at MSN in Microsoft's fiscal second quarter amid ongoing investments in the area the company said would continue. Microsoft executives announced MSN's results as part of its earnings report for the quarter, which ended December 31.

While overall ad revenue, including search, was up, display ad dollars saw an even bigger gain, growing 20 percent in the quarter as compared to the year-ago period. Part of that increase came via a hike in advertising rates, said Microsoft CFO Chris Liddell. Microsoft yesterday announced the promotion of Joanne Bradford to oversee a global media sales force.

Total revenues at MSN, which also include subscription dollars, came in at $593 million, resulting in operating income of $58 million. That represented a 2 percent year-over-year decline in revenues, due to investments in MSN and a 33 percent decline in Internet access revenues, which was expected.

"As you know, we're in the middle of a transition," said Liddell, noting that the company is switching from Yahoo Search Marketing ads and will soon solely display its own ads on search engine results pages. "The ramp up of a new ad platform requires significant investment for MicrosoftÂ….We are ramping up deployment by rapidly onboarding advertisers."

Specifically, Liddell said the company would invest in global infrastructure to support the adCenter platform, which is in use in France and Singapore and being tested in the U.S. The company is also hiring customer service people to deal with advertisers, development talent to increase the range of capabilities and geographies served by adCenter. Microsoft recently launched a Beijing-based R&D center, adLab, aimed at driving advertising innovation.

In the search arena, the company said it would continue to invest in making its results more relevant and in introducing new verticals. Part of that strategy may involve making acquisitions, likely of small- to medium-sized firms, said Liddell.

Microsoft as a whole reported revenue of $11.8 billion for the quarter, which was a 9 percent increase over the same period last year. Company executives noted it was the highest quarterly revenue in Microsoft history. Profit for the quarter was $3.7 billion, or $0.34 per share, up 5 percent from the year-ago period.


Pamela Parker

Pamela Parker is a former managing editor of ClickZ News, Features, and Experts. She's been covering interactive advertising and marketing since the boom days of 1999, chronicling the dot-com crash and the subsequent rise of the medium. Before working at ClickZ, Parker was associate editor at @NY, a pioneering Web site and e-mail newsletter covering New York new media start-ups. Parker received a master's degree in journalism, with a concentration in new media, from Columbia University's Graduate School of Journalism.

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.



Featured White Papers

US Consumer Device Preference Report

US Consumer Device Preference Report
Traditionally desktops have shown to convert better than mobile devices however, 2015 might be a tipping point for mobile conversions! Download this report to find why mobile users are more important then ever.

E-Commerce Customer Lifecycle

E-Commerce Customer Lifecycle
Have you ever wondered what factors influence online spending or why shoppers abandon their cart? This data-rich infogram offers actionable insight into creating a more seamless online shopping experience across the multiple devices consumers are using.




  • SEO Specialist
    SEO Specialist (Marcel Digital) - ChicagoSearch Engine Optimization (SEO) Specialist   Marcel Digital is an award winning digital marketing...
  • SEO / SEM Manager
    SEO / SEM Manager (CustomInk) - FairfaxAre you a friendly, motivated, and inquisitive individual? Are you a positive, out-going leader? Are you...
  • SEO Analyst
    SEO Analyst (XO Group) - New YorkSEO Analyst @ XO Group About this Job, You and Our Team: The XO Group SEO Team is looking for you, a passionate...