What About Microsoft’s Upcoming Contextual Advertising System?

    March 12, 2005

I keep reading all these speculative posts about Yahoo getting into the contextual advertising game …

… being “poised” to compete with AdSense, and so on.

But what surprises me is how little chatter about Microsoft I read. If people really think that MSN Search is Microsoft’s only assault on the cash cow in Mountain View, there’s some really good crack getting smoked.

Maybe it’s time to review Google’s financials and think like like the monoplist that Microsoft is. If you wanted to “pull a Netscape” on Google, would you merely attack them in the algorithmic search market? Or would you go after the real money too?

To quote their filing from last year:

We derive most of our revenues from fees we receive from our advertisers.

Luckily, they haven’t forgotten their roots:

Our original business model consisted of licensing our search engine services to other web sites. In the first quarter of 2000, we introduced our first advertising program…

But I’m betting on a healthy dose of Redmond Greed to make this interesting.

What do you think?

Jeremy Zawodny is the author of the popular Jeremy Zawodny’s blog. Jeremy is part of the Yahoo search team and frequently posts in the Yahoo! Search blog as well.

Visit Jeremy’s blog: Jeremy Zawodny’s blog.