New MSN Updates Bring More Ads

By Ed Oswald | Published April 7, 2005, 9:41 AM

While today marks the day that both MSN Spaces and Messenger version 7 are released to the public, it also marks the start of a risky strategy by Redmond to better monetize the two services.

Users will find ads in places they wouldn't have seen them before, including in their personal Spaces and at the beginning of video chats initiated through the Messenger client.

Microsoft says that the new advertising opportunities "will allow marketers to deeply integrate their brands into consumer’s overall communications experience and connect with their target audiences in more creative, spontaneous and unobtrusive ways."

Announced with the Spaces update was the first advertiser for the service: Volvo. The car manufacturer will have its own Space, and will use it to advertise its automobiles in a blog format. Volvo will also begin to advertise itself through what Microsoft calls "unobtrusive" text links and graphics at the top of users personal Spaces.

Redmond officials hope to entice other companies to the service by offering them a similar deal.

Changes to advertising have been made within the Messenger client as well. Aside from the normal half-banner on the buddy list, users will now see advertisements within the conversation window, in the form of text ads. MSN will also open up its Tabs architecture to allow sponsored tabs within the client.

Additionally, Microsoft plans to serve commercials between each session of a new feature called MSN Video Conversation, a full-screen video and audio conferencing service. According to sources, MSN originally planned Video Conversation as a premium service, however internal tests and research found that consumers would not be likely to pay.

To MSN's defense, the same amount of time was spent on researching advertising across the two services, sources told BetaNews, and the company believes that additional advertising will not adversely affect the perception of Spaces and Messenger 7.

A the products are only launching today, it is too soon to know if users will react negatively to the increased presence of advertising. If the past is any guide, however, there is a very fine line between acceptable and unacceptable amounts of advertising in the eyes of the consumer.

Comments

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Obviously a ploy to get their professional users to jump on their LiveMeeting and Communications bandwagon.

Very lame move by MS. The last thing they want to do is encourage their home users to use 3rd party clients which is what I'll be doing. I'd rather buy a license for Trillian than be bombarded with ads.

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There are patches out which get rid of those annoyances.

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I have a much simpler solution:

Don't Upgrade.

I won't be.

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Whats crap!! I love the new MSN messenger - adds - so bloody what. A liitle info is no more a pain than the TV. And complain?? :: == my subscription took me right to here ...
http://www.inklineglobal...sd_autotune.html?mcp=CN
Just another scam...

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They stink. Greed Greed Greed.......why do people need more money? They don't.

Google is the shiznit. The can do all of this very tastefully. If Google comes out with an OS, IM Client, and/or a browser......they will beat Microsoft at their own Game!!!

Microsoft.......you don't have enough money yet?

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i hope this will encourage more ppl to either keep using 6.2 (if possible) or switch to other clients like miranda, gaim or trillian.

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You know that's very funny.

Businesses are in business to make as much money as they can. Is that too complicated?

How would you feel if someone said, OK, you are making $12.00 an hour, that's too much, so we aren't giving you any more. I'm sure that would be fine with you, given your opinions expressed here.

If you don't like it, don't use it.

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Wow, what do you expect out of free software... There giving you a free product and all they ask for is a few minor ads and all you do is complain... It's not free to make a product...

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Why don't they ask for a small fee. Like trillain. So you don't get all the ads. Give people an option. If u can live with the ads, don't pay(MS keeps gettin money from the ads) Or if the ads are wayyyy do much for you, pay a small fee(MS still gets money) .Don't see my MS haven't done this already.

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Because as the nature of software - where there is a will to crack it, it will happen. Then it will be used for free, and no money generated. Microsoft will have to seek out a new way to generate income.
The nature of the game is to make money, and when will people just stop the whole MS bashing. It is childish. The only reason Trillian or any other message program is not serving ads, is because they are old programs. Mark my words, it will only be a matter of time before you see them do it too. This is the way of Internet Business and how to make money. Advertisers have the deep pockets. Though we don't like them and find ways to get them off of our PC's, they will ultimately find their way back. They will always be here.
This is not a MS conspiracy, just business. They are following the time.

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Ahhhhhhh, such naivete.

"The purpose of a business is to make a profit."

That's Business 101.

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Trillian might, though unlikely since they have a proper pay program. Miranda, GAIM, etc are open source, so they won't add ads.

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Don't be fooled by that there are programs called open source if you don't like anything in it you can just edit and compile it, so it's kinda hard to Gaim or amsn to have ads ...

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