Microsoft Earnings: Display Ad Revenues Tank on Lower Prices
Bing launch deemed a success, but demand for display advertising continues to fall.
Bing launch deemed a success, but demand for display advertising continues to fall.
Microsoft’s online ad revenue declined 13 percent during the quarter just ended as display ad prices continued to fall. Execs said the company now expects advertiser demand to remain weak for at least the next quarter, and possibly for the coming year.
Ad revenue came in at $529 million, $86 million less than the year-ago period. The decline might have been worse if not for growth in pag eviews, investor relations GM Bill Koefoed said yesterday during the company’s earnings call.
Overall, Microsoft’s online services business unit, which houses MSN, Bing, and Microsoft’s other online ad-related businesses, saw revenue decline $106 million. Operating loss was much greater than that at $732 million, partly because of increased traffic acquisition costs such as those paid to publishers and other syndication partners.
Microsoft’s biggest online initiative for the quarter hands-down was the launch of its new search brand. According to the company unique monthly audience to Bing.com grew 15 percent during the period. Despite the growth, Koefoed said search revenue was flat. That may be attributable in part to a decline in the number of ads being served on search results pages. Earlier this month search marketer AdGooroo observed a significant decline in first-page ads when Bing replaced Microsoft Live Search at the beginning of June.
“We’ve seen particular strength in the areas of shopping and travel,” said Koefoed. He said visitors to Bing Shopping almost tripled while Bing Travel traffic was up 90 percent in the month after its launch.
More about:
Lucy helps organizations leverage knowledge for in... View Tech Talk
TVSquared is the global leader in cross-platform T... View Tech Talk
Grata is a B2B search engine for discovering small... View Tech Talk
Streaming has become a staple of US media-viewing ... Download Now
Data is the lifeblood of so many companies today. ... Download Now
This report documents the findings of a Fireside c... Download Now
Customers decide fast, influenced by only 2.5 touc... Download Now
Streaming has become a staple of US media-viewing habits. Streaming video, however, still comes with a variety of pesky frustrations that viewers are ...
View resourceData is the lifeblood of so many companies today. You need more of it, all of which at higher quality, and all the meanwhile being compliant with data...
View resourceThis report documents the findings of a Fireside chat held by ClickZ in the first quarter of 2022. It provides expert insight on how companies can ret...
View resourceCustomers decide fast, influenced by only 2.5 touchpoints – globally! Make sure your brand shines in those critical moments. Read More...
View resourceMarketers today need to thoughtfully select visuals that align with their content, boost SEO performance and drive ROI Read More...
View articleHow the sunglasses giant created subconscious brand recall value with music festival-goers through the power of strategic partnerships and experientia...
View articleIn life, as much as on LinkedIn (or Facebook, Twitter, etc.) people and brands who blabber on about themselves become annoying and best avoided, soone...
View articleBuilding trust in your brand is hard enough. Now take a situation where your audience is so cynical of your product offering some of them even call fo...
View articleThere is room for better lead capturing as ABM evolves in a cookieless world Read More...
View articleTop-of-mind action points that will be valuable to challenger brand marketing for the rest of 2021 and 2022 Read More...
View articleOmnichannel marketing presents an opportunity to marketers but requires better use of data Read More...
View articleThe dark horse your business needs to outperform competition and win at search Read More...
View article