Microsoft To Introduce Behavioral Online Ad Targeting on a Global Scale

In a bid to compete for a larger share of the online advertising market with leaders Google and Yahoo, Microsoft is launching its behavioral ad targeting campaign globally. Active in the U.S. on a trial basis since September, Microsoft's global head of advertising sales Chris Dobson claims the companies new ad-targeting methods have increased click-throughs by as much as 76%. Combining data provided by Microsoft's 263 million hotmail email users upon signing up for their free accounts, as well as data culled from online searches, the company's database of advertisers is then searched to produce ads that cater to individual hotmail user needs and wants. The company declined to comment on which advertisers it already has lined up.

• Sources: Wall Street Journal, Reuters
• Related commentary: Online Advertising Tops $4 Billion Per Quarter, Small to Medium Enterprises: The Growth Market for Web Advertising, Yahoo Expands Panama Launch to Newcomers, Google’s Branded/Display Advertising Strategy in One Word: YouTube
• Potentially impacted stocks and ETFs: Microsoft (MSFT). Competitors: Google (GOOG), Yahoo (YHOO), IAC/InterActiveCorp (IACI). ETFs: Internet Architecture HOLDRS (IAH), Vanguard Information Technology (VGT), iShares S&P Global Technology Sect. (IXN)

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