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MSN Takes on Google AdWords

kevmo writes "CNET News.com reports that Microsoft's MSN unit launched its own paid-search advertising program in France and said it plans to begin testing the system in the United States next month. FTA: "The system competes with Google's AdWords program and will eventually replace a keyword-based advertising program MSN contracts out to Yahoo. It has a simple user interface and is notable for its use of customer profiling, taking advantage of the data MSN gathers from its more than 9 million subscribers.""

43 of 156 comments (clear)

  1. I use AdWords on a few websites... by Iphtashu+Fitz · · Score: 3, Interesting

    What's in it for me to switch to MSN's?

    1. Re:I use AdWords on a few websites... by IAmTheDave · · Score: 2, Funny
      What's in it for me to switch to MSN's?

      Market penetration?

      (before the flaming starts, it's a joke.)

      --
      Excuse my speling.
      Making The Bar Project
    2. Re:I use AdWords on a few websites... by lucabrasi999 · · Score: 5, Funny
      What's in it for me to switch to MSN's?

      Quality and Security.

    3. Re:I use AdWords on a few websites... by ThaFooz · · Score: 5, Informative

      I use AdWords on a few websites... What's in it for me to switch to MSN's?

      Well, I'm unsure if you mean you advertise on a few websites or put ads on your your own websites for revenue. But, I've done a lot of work in the industry so here goes:

      Google and Yahoo have a roughly equal share of the keyword-based advertising market (roughly 45% a piece), and most of the traffic comes from their own search engines, not their content network. The launch of MSN's program will imediatley cut into Yahoo's share (as current MSN ads are contracted to them), not Google's. It's hard to predict just how much though - Microsoft's search engine is less popular with a smaller index (and technicaly inferior IMHO), but Microsfot is pushing it pretty hard, and they own a fair number of hugely popular sites (MSNBC, Hotmail, ect). If you're targeting a specific demographic or website owned by MS, you'll have to consider them. But I don't see the major distributions out there flocking to an unproven system by a fairly new player to the search industry.

      Between Google and Yahoo, I don't see overall differences in advertiser/advertisee ROI, but the two systems work slightly differently and could be quite different to a smaller operation. Where you place in Yahoo is based on how much you're willing to spend, where placement in Google is determined by a combination of the traffic you generate and your bid.

      Bottom line, if you're only toying with AdWords at the moment, I wouldn't bother with MSN until you've experimented with Yahoo.

    4. Re:I use AdWords on a few websites... by mat1t · · Score: 4, Interesting

      Surely you don't want to switch, you want to use both! Thereby increasing the amount of adverts your product has! :)

  2. France? by bugbeak · · Score: 3, Insightful

    Not to try to inflame any French /.tter, and I don't know much about the French, but wouldn't there be a significant difference between how the French or Americans surf? Like the kinds of stuff they look for, etc.

    Just wondering why MS would test-run in France instead of some fixed part of the US.

    1. Re:France? by boaworm · · Score: 2, Insightful

      Why would it be a "significant difference" ?

      Their everyday strolling is probably very much alike (except for the spelling that is)

      --
      Probable impossibilities are to be preferred to improbable possibilities.
      Aristotele
    2. Re:France? by Anonymous Coward · · Score: 4, Funny
      wouldn't there be a significant difference between how the French or Americans surf?
      From my proxy logs: pr0n, ebay, pr0n, holiday travel companies, pr0n, webmails, pr0ns. Oh, and some work-related sites, like journal-officiel.gouv.fr or sante.gouv.fr. About 4% of the traffic. No, I don't think there's that much difference.
    3. Re:France? by Absentminded-Artist · · Score: 4, Insightful

      Didn't Google have high profile legal troubles with France? 1 2 and the famous 3 Perhaps MSFT chose France because it seems the less Google-happy place on earth.

      --
      The Splintered Mind - Overcoming
    4. Re:France? by foniksonik · · Score: 2, Funny

      I would imagine that they probably look up things like Wine, Cheese, syphillis and Kylie Minogue whereas Americans are more prone to Pepsi, cheese, porn and Jessica Alba... ;-p pretty significant difference if you think about the implied cultures.

      OF course we have cheese in common but in France it's capitalized, cause in America cheese is something that comes in a can.

      --
      A fool throws a stone into a well and a thousand sages can not remove it.
    5. Re:France? by Nf1nk · · Score: 2, Funny

      Point of intrest. Mosted canned cheeses (yum) are generaly spelled cheez or some other marketing spelling, because there may be no actual cheese in the can, Just Tasty Goodness.

      --
      I used to have a cool sig, back when I cared
  3. MSN AdCenter by NoInfo · · Score: 4, Informative

    The actual URL to Microsoft's MSN AdCenter:

    adcenter.msn.com

    1. Re:MSN AdCenter by ednopantz · · Score: 4, Informative

      One should note that you need an invitation.

    2. Re:MSN AdCenter by dereference · · Score: 2, Interesting
      Note the un-trusted certificate (at least in Mozilla):

      Issuer:
      CN = Microsoft Secure Server Authority
      DC = redmond
      DC = corp
      DC = microsoft
      DC = com

    3. Re:MSN AdCenter by ednopantz · · Score: 2, Interesting

      None of their developer pages have Verisign certs. I guess they don't want to pay the piper either.

    4. Re:MSN AdCenter by Veinor · · Score: 2, Interesting

      At first, you needed an invite to get GMail, didn't you? And these days, everyone has an invite. Maybe MSN is doing the same sort of thing: making it invite-only in the beginning to make it seem like it's the new cool thing, then giving everyone so many invites that it effectively becomes public. Just my 2 cents, though.

  4. Healthy competition by SumDog · · Score: 3, Interesting

    You know, I am annoyed by the onslaught of Google articles on here, but maybe there are so many articles because they are great innovators. Google doesn't necessarally makes new software, but take an old idea and make it much better, or work in a different way that may or may not be more efficient.

    People complain about Google possibly turning into another Microsoft, but I say that may not be a bad thing. Two giants with totally different ideas about engineering, research and design are now trying to grab a hold onto the same markets. There are similarities too; both companies to a lot of live testing with their consumers.

    My revenue on google Adwords hasn't been all that great, so at least now if I desired, I could try a different option from a major provider. I like this and I'd hope to see more healthy competition between Google and Microsoft.

    1. Re:Healthy competition by sedyn · · Score: 3, Insightful

      The thing I fear most about google is that it may dominate the online services world and gain a monopoly position. Which is why most people fear it becoming like microsoft (as far as I've seen).

      The reason for this fear is two-fold, but both reasons stem from resources.

      In my opinion, a company is too powerful when we have the hypothetical situation that if their "IP" and/or physical assets are taken away, but not the talents of their staff, that they could not hope to compete with their previous work.

      Or to state it simpler, when the hardware/software + "IP-rights" are greater than the employees.

      A good example of this would be when Steve Jobs created Next with some of the best people from Apple. Another would be to imagine microsoft without the rights to the office formats or windows APIs.

      In the case of Google I see two things that would/will qualify them in this category.

      1) Hardware, the hardware to run a search engine is quite expensive.
      2) Ad revenue connections, imagine getting your foot in the door if you are competing against Google.

      The question that I pose now is, "Can an open source project, resembling google, have a chance against google?" As long as the answer to that is yes, I have no problem with them. But it is my fear that in the future, the answer will be no. (I feel that google can still be wiped off the 'net)

      Maybe the creation of a "Free Services Foundation" may be required, assuming one does not already exist. Where hardware and bandwidth is provided (I suppose sourceforge would be a good example, but it is only a start)

      --
      Am I open minded towards open source, or closed minded towards closed source?
  5. Pay-per-click? by BenjyD · · Score: 4, Insightful

    I wonder if better ad-targeting will mean higher pay-per-click for the publishers? Not that anyone will dare discuss their Adsense earnings, for fear of having their account cancelled.

    1. Re:Pay-per-click? by ChrisF79 · · Score: 4, Interesting

      I have Adsense on my small site and what is frustrating for me isn't the earnings but the lack of consistency. Sometimes I'll have one click that pays more than the 15 clicks the day before. It is very hit or miss with Google. I'd love to see MSN provide a more consistent income stream or at least something I can understand. I see how people bid on the ads and so they're clearly going to have different earnings, but the disparity between them really astounds me. Just my $0.02.

      --
      Finance tutorials and more! Understandfinance
    2. Re:Pay-per-click? by harvardian · · Score: 3, Interesting

      I've always wondered why Google's black box approach to AdSense didn't tip off people's evil-meter. That sort of opacity would never in a million years be tolerated from Microsoft, especially when it comes to money.

      It may just be that there's no real competition, so they can take advantage of their mono...uhh...I mean, "reap the benefits of their innovation".

  6. The Matrix... by Stanistani · · Score: 3, Funny

    >taking advantage of the data MSN gathers from its more than 9 million subscribers

    We're not going to be farmed for energy by soulless machines...

    We're going to be farmed for our metadata by soulless corporations!

    I feel so much better now.

  7. Its inevitable by zappepcs · · Score: 4, Insightful

    Despite my normal anti-Microsoft stance on the world in general, this type of information usage is going to happen no matter what we as users want. The worst case is the governments of the world using personally identifying information in similar kinds of ways.

    Since I don't think it can be stopped any easier than spam-email can be stopped altogether, I want to make my online profile seem as non-descript as possible. That is to say that I don't want to be part of a 'demographic'. That probably means I'll get lumped in with people that buy things I don't want or am allergic to. This is all the more reason to not use MSN... to avoid becoming a user in a demographic. We don't allow the government to use racial profiling... this is just cyber profiling in my opinion, and far worse that standard advertisement campaigns.

    Of course the French will have differing demographic and cyber values than people in North America... we won't be looking to buy white flags :)

    Despite the jokes, does anyone know of software or companies that specifically work to help a user maintain anonymity in the face of this type of information usage?

    1. Re:Its inevitable by harvardian · · Score: 2, Interesting

      If you're so averse to anonymous profiling, you should probably stop shopping at Amazon. And your local grocery store. And Wal-Mart. And countless other retailers who collect anonymous usage data or match your credit card number to private databases to find out more about you.

      To be honest, I don't mind demographic targeting as long as it's anonymous. I don't mind getting ads for Playstations instead of Barbies. And I don't mind it when Amazon suggests that I buy things targeted to my shopping profile. We're not all going to be mindless drones in the future, numbed to our corporate overlords. We're just going to be more jaded in the face of ever more sophisticated targeting.

  8. Might be a good option? by seanvaandering · · Score: 3, Interesting

    I have an adwords account as well, one of the possibilities might be that the MSN market would generate more revenue? Consider that the users who use Google might be smarter than the ones on MSN due to the fact that those people who don't know how to change the default homepage after installing windows might be a viable market to advertise to :)

  9. New Company Slogans by lbmouse · · Score: 2, Funny

    Microsoft: Who do you want us to copy today?
    Microsoft: Innovation Through Imitation.
    Microsoft: Developers. Developers. Developers. We are happy with our halfassed developers.
    Microsoft: Screw new ideas, we have a monkey boy.

    1. Re:New Company Slogans by NuttySocrates · · Score: 2, Interesting

      Well as much as MS bashing is warranted at times, the above post is mindless irrational barrage.

  10. Whoa, whoa, hold up now. by Pichu0102 · · Score: 4, Interesting

    It has a simple user interface and is notable for its use of customer profiling, taking advantage of the data MSN gathers from its more than 9 million subscribers.

    Does this mean that people logged into their .NET Passports will have the data taken from the passports in order to serve more relevant ads? If so, does this mean that web site owners will have the ability to look and see what data the .NET Passports hold?

    1. Re:Whoa, whoa, hold up now. by toleraen · · Score: 2, Insightful

      I would imagine it's sorta like Google, where it looks for keywords. Probably the different services you are signed up through in passport as well. I don't use passport/msn at all, so I don't know how extensive it is, but I'm sure that there's plenty of keywords they can match to you when you're logged into MSN.

  11. Innovative by sxmjmae · · Score: 3, Funny



    Good to see Microsoft is still Innovative.
    Surprising for such monolithic company to still have new and fresh ideas.
    You would think a large company, like Microsoft, would use it position to exert pressure to adopt their services.

    --
    My Sig indicates the end of the comment I posted.
  12. The attack continues by Crixus · · Score: 2, Interesting

    MS needs to be put in their place, and to a small degree Google has been doing that. It will be interesting to see for how long Google can withstand MS's onslaught.

    --
    Ignore Alien Orders
  13. Perfect. by Sialagogue · · Score: 3, Funny

    Finally, click fraud victim we can all feel good about. . .

    --
    The only acceptable defense of scientific results is to say that they were the product of the Scientific Method.
    1. Re:Perfect. by krunk4ever · · Score: 3, Insightful

      the victims are the advertisers and Microsoft in this situation would actually be making more money. if they do catch you, MS still has nothing to lose besides helping advertisers gain confidence in MSN click fraud detection.

  14. In other news... by advocate_one · · Score: 2, Insightful
    Yahoo share price collapses...

    Google share price rises ever so slightly

    Microsoft taking on Google... first casualty is Yahoo... meanwhile Google fails to notice any impact... 9 million MSN subscribers is peanuts compared to number of people who use google

    --
    Donald 'Duck' Dunn: We had a band powerful enough to turn goat piss into gasoline.
  15. Re:Sorry M$, you missed the boat! by Iphtashu+Fitz · · Score: 2, Insightful

    Microsoft has had success playing the catch-up game in the past, but I think this time the lag is going to cost them.

    While I do agree with your comments about MS playing catch-up, I do think that if they play their cards right they could succeed in penetrating at least part of Googles ad space. MS isn't shy about throwing money where it thinks it'd do them good in the long run. If they started out with a pay-per-view instead of pay-per-click model, or even paid website owners significantly more per-click then it could help them to get more of a foothold.

    Personally I'd consider displaying both Googles & MSN's ads on my websites as long as one or the other didn't have an exclusivity clause in their agreements. At least until I got a better handle on which one generates more revenue for me. If MSN's ads turned out to generate more revenue for me then I'd probably switch, but it'd be up to MSN to prove to me that that's the case.

  16. Microsoft's Statement on Innovation ... by joelsanda · · Score: 3, Informative

    At Microsoft, we see a future full of potential. We're working to expand the possibilities for computing every day, by continually improving and advancing our current products and embarking on fundamental research that paves the way for tomorrow's breakthroughs. Through partnerships with universities, governments, and other companies, Microsoft is working to push the state of the art forward in ways that benefit everyone.

    http://www.microsoft.com/mscorp/innovation/

    --
    The Luddites were ahead of their time.
  17. Google draws attention to little-known competitors by haruchai · · Score: 2, Interesting

    Maybe I don't pay enough attention to their various projects but it seems to me that Google has been churning out complex projects at, for a large development company, breakneck speed.

    Even if most of those projects are still in Beta, all the ones I've tried are very functional and stable. While there are other companies who have similar products or projects that are more functional or establised, Google's ability and flexibility should have them all scrambling to innovate or to defend their market share.
    Funny thing is, I've only become aware of a lot of these established competitors BECAUSE of Google's projects. If it weren't for Google Desktop search, I may never have heard of Copernic - which is a pretty darned good program.

    --
    Pain is merely failure leaving the body
  18. Re:Sorry M$, you missed the boat! by Sialagogue · · Score: 2, Insightful

    But I'd assert that late entry is exactly their model.

    They have a huge war chest of pure cash, so they let other companies (even large and agressive ones like Google) do their market testing for them. They watch how the market responds, watch what goes right and wrong, and then only after it makes sense do they enter the market using overwhelming amounts of money and market position. If all else fails, they end up buying companies that own technology or experience flat out, but there's never any question that they should be in the market, because someone like Google tested it (and took the risks) on their own dime.

    Being an innovator is cool and it's why we all love Google, but I wouldn't underestimate how much greater is the advantage of an informed and tested market entry over the first-mover advantage, and from the late adoption of the Internet on forward Microsoft has shown that they understand this too.

    --
    The only acceptable defense of scientific results is to say that they were the product of the Scientific Method.
  19. One way that MSN can beat adwords by wackysootroom · · Score: 4, Interesting

    Adwords used to be a great thing for small-time advertisers and that's precisely the reason that myself and many other small advertisers like me used adwords. I could reach thousands on a budget of less than $100 a day.

    Google changed their minimum-bid policy and now I have to end up paying $10 a click for some keywords and no less than $1 to get on the first result page for others. I used to get up near the top for less than .20 on many of my keywords. Not anymore. I can't afford $5-10 a click so I cancelled my adwords campaigns. Judging by some of the angry threads at webmaster world I'm guessing that there's hundreds of others out there like me. Maybe Google just needs something to show for thier inflated stock price.

    If MSN can offer a decent amount of quality traffic for a good CPC I'll jump all over it.

  20. Re:Brutality in China against Falun Gong by BladeMelbourne · · Score: 2, Funny
    American-centric?

    I probably should have read the fine print when signing up to Slashdot. Now all my base belong to... ah screw it.

    (Australian working in the UK, reading Slashdot)

  21. Publicly traded companies are not your friend by shagoth · · Score: 2, Insightful

    "Microsoft is just stealing ideas!" "Google will kick their butt!" "Google is my pal and I'll never use MSN!"

    Whatever, the fundamental fact remains that publicly traded companies are not your friend. They are big companies driven by profit and accountability to shareholders. The concern for the individual is ZERO regardless of what cute corporate motto they might have.

    The darlings of slashdot won't come to your rescue without profit being involved. Google won't save you, and you're fools to want them to. Apple hasn't fixed the fundamental problems of OSX and the move to intel has delayed optimization and improved performance for months to years, they aren't friends either.

    Sure this is a little off topic, but as threads degenerate into flames for on publicly traded monolith and accolades for another, it's important to keep perspective that basically all publicly traded companies are the same.

    Google isn't innovating either. They've acquired Picassa, Keyhole and others. GoogleTalk is just jabber repackaged. This community tends to laude those efforts as though Google continues to be a haven of innovation. That remains to be seen. Their innovation comes in repackaging acquisitions and open standards anymore. MSFT just rebuilds what they see, how is it really that different?

  22. Is it mating season? by miffo.swe · · Score: 2, Funny

    Well i guess copying is the sincerest form of flattering. Microsoft seems to be flattering everything in sight theese days.

    They sure are a flirty company.

    --
    HTTP/1.1 400
  23. Re:Will MSN's ads work by ehudokai · · Score: 2

    Who modded this interesting? this is such a troll!!

    In advertising, why would it make any sense for Microsoft to make ads IE specific? Advertising is about reaching as many people as possible with relevant ads. M$ are money grubbers, not just power-mongers.

    Personally, I hope the parent is right, because the one thing that it is hard for my adblock in firefox to block is the google adwords. If M$ did use active-x that would completely eliminate the problem for me :).

    But it won't happen. If you have been reading /. recently MS has been coming out with new AJAX based technologies that work cross platform/browser. Take a look at their new home page previously referred to here on /. I dare say it is a lot nicer than Googles, feature-wise.

    So maybe Microsoft is waking up and realizing that if they are going to compete with Google, they are going to have to abandone their "Windows is the only OS" model.

    I hope they do, competition is ALWAYS good.

    --
    This is just sig!