Internal, External Ad Networks Merged

The consolidation of two advertising networks gives advertisers a single system for buying low-cost advertisements on Microsoft-owned Web sites, partner sites (such as Digg and Facebook), and sites formerly served by the DRIVEpm network, which Microsoft gained in the 2007 acquisition of aQuantive. The combined network, known as the Microsoft Media Network, will reach an estimated 75% of the Internet population, helping the company compete against advertising networks owned by AOL, Google, and Yahoo. The single network is also an important step toward better integrating aQuantive with Microsoft’s other online businesses.

Combines Direct Response, DRIVEpm

Microsoft offers a wide array of programs for placing advertisements on Microsoft sites and services (such as MSN, Windows Live, Office Live, and the Xbox Live dashboard) and on sites operated by its advertising partners (such as Digg and Facebook).

At the high end, the company’s advertising sales force works with large clients and agencies to create branding campaigns that span multiple sites and services. Certain premium advertising space, such as the MSN home page, can be purchased only through these programs and may command tens or hundreds of thousands of dollars. However, Microsoft also offers many services for customers with lower budgets, such as adCenter, which lets customers buy keywords on Live Search and contextual text-based ads (known as Content Ads) across Microsoft and partner sites; and Email Solutions, which lets advertisers send e-mail messages to Hotmail customers and MSN newsletter subscribers who have opted to receive such messages.