MSN last week began to quietly test a classifieds listings service, Windows Live Expo (aka Fremont), which is integrated with other Microsoft tools, allowing buyers to contact sellers via MSN Messenger and letting sellers publicize listings on MSN Spaces profiles, reports MediaPost. Events, real estate, and other location-based listings will also be displayed on Windows Live Local (the erstwhile Virtual Earth). Monetization, for now, is via Kanoodle contextual ads.

Microsoft is considering charging for certain verticals, such as real estate or jobs. The pilot is for Microsoft employees and alumni and was expanded last week to students and alumni of the University of Washington.

According to Kelsey Group Analyst Greg Sterling, the advantage of Windows Live Expo is its integration with Windows Live Local, allowing Microsoft to become a one-stop shop for both Yellow Pages and classifieds listings.