Yes, but will it keep?

Microsoft spent yesterday showcasing a handful of ad technologies in its pipeline, reports The Seattle Times.

This was part of Microsoft's annual "Demo Fest," hosted by adCenter Labs. Though the event was planned well before Microsoft's bid for rival Yahoo, the pending offer brought heightened drama to the atmosphere.

Microsoft's ad experiments include a system that analyzes respective videos to determine ideal locations for ads. Another projects an interactive screen on bare walls, which can be used for shopping or other purposes.

Microsoft is steadily solidifying its place in the online ad market. Last week it signed an ad deal with the Wall Street Journal digital network. Publicizing its developments may generate excitement among future partners, even if the products are not yet ready for mainstream use.

Last year Microsoft worked with EA to debut an ad platform that enables advertisers to populate PC or Xbox 360-based games with fresh ads.