Microsoft Debuts New Online Ad Brand

Microsoft plans to announce Monday its latest product to assist advertisers across its multiple platforms and services. Called "Microsoft Digital Advertising Solutions," the company says those using the service could potentially reach 465 million consumers.

"As today's consumers spend more and more time online across various digital devices like mobile phones and video games, advertisers are finding they can no longer reach their entire target audience by advertising on a single medium," Microsoft's chief media revenue officer and corporate vice president of marketing Joanne Bradford said.

Bradford noted that Microsoft is "uniquely positioned" to address the issue due to its broad reach and variety of platforms on which advertisers could use. Ad space would be made available on the MSN, Windows Live, Xbox Live, and Office Online services.

"Microsoft's advertising business is growing quickly and becoming more sophisticated," Bradford added. "It is our responsibility to clearly articulate to advertisers how they can apply our broad set of assets and relationships to reach consumers across the many digital touch points of their day."

As the company continues a migration to an advertising-supported model where its products are given away at little or no cost, increasing ad revenue has become increasingly important for Microsoft. However, Redmond still has considerable ground to make up against Google and Yahoo.

Both rivals have much more mature ad businesses, having spent years on developing their offerings. Still, Microsoft remains optimistic and aims to have its Digital Advertising Solutions service increase sales by fourfold over the next three years.

There is quite a ways to go - while Google had $6.07 billion in ad sales and Yahoo $4.59 billion, Microsoft's MSN division lagged way behind at $1.39 billion. Some analysts say MSN's weaknesses in search have much to do with its advertising woes. The recent launch of Windows Live Search is designed to remedy that problem.