Growth of online advertising and Microsoft | NY Times

Microsoft is, like SAP, rapidly conceding that Web 2.0 and E2 is a worthy model to deploy into their conventional businesses. Took a look at MS Live yesterday, where users can create a www for free (and paid) and plan an advertising model around it. Good idea, now I see that MS is moving rapidly into advertising. I paraphrase from this article:

Steve Ballmer, the chief executive of Microsoft, vowing that the company’s $6 billion plunge into the ad business two months ago was not just an experiment, said today that advertising would become 25 percent of the company’s business within a few years.

That, he said, would be about the same amount of time it would take for all media and marketing to go digital.“Over time, all ad money will go through a digital ad platform,” Mr. Ballmer told a gathering of European ad agencies and clients. “All media goes digital; all advertising goes digital.”

Stephane De Sakutin/AFP/Getty Images

That is the lead-in to the main part of this post, which goes on to give telling stats (my emphases):

Mr. Ballmer’s remarks came the same day that the British online advertising trade group, the Internet Advertising Bureau, reported that Internet marketing had grown 41.3 percent in the first half of 2007 and now accounted for 14.7 percent of the British ad market.

The total British market grew 3.1 percent during the first half of the year, to £9.1 billion ($18.2 billion). Without Internet advertising, however, total media spending would have fallen by 1.9 percent. “Once again the Internet has propped up the U.K. advertising economy and remains the fastest-growing advertising medium,” the group said.

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