Microsoft is looking to develop new digital ad formats and attempt to tap into the digital TV ad market in tandem with Publicis' digital arm, VivaKi. The search deal the pair have signed is the latest move by the software giant to boost its advertising revenue, and will also see Microsoft join with Publicis to create original ad content.
Under the three-part deal, Microsoft will create a customised VivaKi TV ad exchange, designed to let companies to deliver targeted ads to TV viewers. This will be developed using Microsoft's Admira technology, which it acquired when it bought out TV ad firm Navic Networks in June 2008. The Admiral technology, which is set to go live in Q4 2009, runs on digital set-top boxes using anonymised information to discover users' viewing preferences. Microsoft claims that this gives advertisers access to "audience characteristics currently not available on existing TV advertising platforms". It also says that the technology "can continuously optimise ad placements in response to near real-time viewing trends".
Under the deal, VivaKi's ad network subsidiaries, Starcom MediaVest Group, Zenith Optimedia and Digitas will be among the first to use the network, to help their clients plan and buy ads and ad campaigns. The deals mark a growing commitment for the Microsoft TV ad technology. Earlier this month, NBC Universal said it would also use the platform, when it launches later this year, to sell national and local cable TV ad inventory.
As a second part of the Publicis-Microsoft agreement, the two firms will work to develop new ad technologies and digital ad formats in an effort to "enhance engagement, performance and return on investment". Without revealing details, the firms said their first trial ad would be based around online video and would roll out this summer, with a second, short-form video trial to follow. Future ad trials will focus on mobile, advanced TV and social marketing ad formats.
Finally, the third part of the scheme will see Microsoft partner with Publics' digital marketing arm PBJS to help create, produce and distribute new ad content. The deal, which was announced at the Cannes Lions International Advertising Festival, is Microsoft's latest move into the digital ad space. In May, it officially launched its Content Ads contextual network, which allows companies to assign keywords to ads, while the recent launch of search portal, Bing, marks a firm effort to up its share of the search and search ad market.
Microsoft CEO, Steve Ballmer has previously stated that he hopes that 25% of the value derived from Microsoft Business in the future will come from advertising.
StrategyEye's related categories: Advertising Agencies - Full Service, Advertising Agencies - Interactive
