Fred

Microsoft has launched two initiatives - rich media and a contest with a huge cash prize - to raise awareness of its new small and midsize business Office Live software packages, reports ClickZ.

Rich media ads, using Rovion's InPerson platform, feature Fred, a guy in a gorilla suit trying to promote his own business, to talk to viewers about the benefits of Office Live. The ads are in response to Microsoft's realization that online ads work best when they are "very interactive and compelling."

Separately, Microsoft is also running an ideaWins: The Ultimate Challenge contest to identify and recognize an innovative business idea. The winning submission will receive $100,000 in business startup money, infrastructure and software, and the use of a Manhattan-area storefront for one year.

"It's not straightforward all the time, reaching small business customers. They are across industries, so it's really hard to have a single message that will resonate with every single one," said Michael Schultz, U.S. business and marketing lead for Microsoft Office Live.