Microsoft on Advertising

From the much-talked-about Microsoft memos, some tidbits on incorporating advertising (and on the marketing of software):

Bill Gates:

  • Advertising has emerged as a powerful new means by which to directly and indirectly fund the creation and delivery of software and services along with subscriptions and license fees.
  • This next generation of the internet is being shaped by its “grassroots” adoption and popularization model, and the cost-effective “seamless experiences” delivered through the intentional fusion of services, software and sometimes hardware.

Ray Ozzie:

  • Online advertising has emerged as a significant new means by which to directly and indirectly fund the creation and delivery of software and services. In some cases, it may be possible for one to obtain more revenue through the advertising model than through a traditional licensing model. Only in its earliest stages, no one yet knows the limits of what categories of hardware, software and services, in what markets, will ultimately be funded through this model. And no one yet knows how much of the world’s online advertising revenues should or will flow to large software and service providers, medium sized or tail providers, or even users themselves.

[Many thanks to Dave Winer for the complete memo text.]

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