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Microsoft Rapidly Eating Larger Share of Pie

IAR: MSN Claims Online Ad Momentum

MSN executives pointed out to analysts that Microsoft is fast gaining advertising market share, even as the market grows. With unaudited advertising revenues of $832 million, the company seems to be in striking distance of AOL and may have already surpassed Yahoo.

Aside from a 350 million-member network and default homepage settings to much of the rest of the world, a Microsoft executive thought that pay-for-clicks deals (note: not paid search) had proved a competitive advantage. Buyers in the market this year will likely have noted that, while Microsoft seemed eager to move to a pay-for-performance model in its general media, the other larger sites considered this model only for the very largest advertisers.

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