Microsoft advertising going to digital
Perhaps it’s no surprise that Microsoft, which continues to lose market share to industry rival Google, is moving the bulk of its ad spending to digital media over the next three years.
Company officials said at an advertising conference that by 2010, the majority of Microsoft’s media budget will shift to digital.
Microsoft spent $945 million in US advertising in 2005, according to Advertising Age.
But the company is losing market. “And things aren’t expected to turn around anytime soon,” said c/netnews.com.
Where it once forecast that revenue might grow by as much as 11 percent, the company now sees full-year sales growth in its Internet services business of just 3 to 8%.
“Success continues to elude Microsoft in this market,” Technology Business Research analyst Allan Krans said in an e-mail interview with netnews. He said Microsoft is hardly alone, with other rivals also struggling to keep pace with Google.
“Given Google’s large head start in the market and its ongoing momentum, we think it will be very difficult for Microsoft to have a real impact in the online search market during 2007,” Mr Krans said.
Report by David Wilkening
David
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