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The key is creating a robust enough advertising business to pay for more expensive content than what has been traditionally offered for free on the Internet. At the center of Microsoft's efforts here is a product called AdCenter. Its initial role is to offer the same kinds of text-based keyword ads as Google serves up though its AdWords, but Microsoft's ambitions for AdCenter go much further.
Executives see AdCenter, which has been known internally by the code name Moonshot, as a way to offer all manner of ads, text, display and video for use both online and offline on a PC, and on other devices, such as the Xbox gaming console or mobile phones.
"It's not just about (ads that run) in your PC with your browser open," Joanne Bradford, Microsoft chief media revenue officer, said in an interview last week. "Today, it's keyword...We believe in the future it will be about display (ads), video and all that is advertising."
Microsoft is clearly looking to forge new ground with AdCenter, said Matt Rosoff, an analyst at Directions on Microsoft. "It's pretty clear that AdCenter is going to be more than a traditional paid search platform," he said. "They are taking the idea of contextual advertising and applying it fairly broadly."
Rosoff said it makes sense for Microsoft to explore which types of products might be supported by ads.
"It doesn't surprise me at all that they are looking at all possibilities, especially given that a lot of people feel Google is going to go this direction," Rosoff said. He notes that Money, for example, is already a hybrid product that has both a desktop software and an online component.
However, he is not convinced that consumers will accept a vast quantity of ads rather than pay for software.
"Are people willing to pay $100 every three or four years not to get bombarded with ads?" Rosoff said. "I think a lot of people will."
Finite market
He also notes that however promising the ad market, it is a finite one that can only support so many products. Today, online advertising is growing as businesses shift from things like yellow pages, print and TV ads, but, Rosoff said: "Eventually that tops out."
Microsoft faces other challenges as well. One problem with inserting ads served over an Internet connection into desktop software is that while broadband access has grown, many computers spend a significant amount of time offline. Also, to pay off, such advertising must be targeted and relevant enough to both generate higher revenue and avoid annoying users.
"It's definitely an idea to pursue, but it's fraught with perils," said Forrester Research analyst Charlene Li.
Li said the move could open up new markets for Microsoft, but notes that it is also a move into largely uncharted waters. "The challenge becomes users aren't necessarily used to having ads on desktop applications."
These concerns could explain why Microsoft held discussions to buy controversial adware maker Claria this summer, though ultimately no deal was announced.
Privacy is another major issue Microsoft expects to face. The paper suggests some options such as offering paid, ad-free upgrades; allowing users to turn off some of the personalization options in favor of more generic ads; and choosing applications to be ad-based in which users are already sharing private data. Even those moves may not be enough, the paper suggests. "Unfortunately, even where consumers are willing to make this trade, privacy advocate and perhaps European regulators are not," the authors wrote.
Li notes that some users might feel comfortable, say, writing a letter about their trip to Costa Rica in a free, ad-sponsored word-processing program and seeing ads for Costa Rica travel, while others may find that crosses a line.
"Everyone has different thresholds for how much their privacy is worth," Li said.
Despite the concerns, though, the researchers argue that Microsoft needs to act."As online advertising increases our competitors will enter many markets with free, ad-supported products," they wrote. "We must have free, ad-supported entries in these same areas."
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Ray Ozzie, desktop software, paper, online advertising, MSN
at that, is just asking for headaches.
Also, It's only a matter of time until someone finds a way to overwrite MS ads with their own, no matter what MS does, there will be someone who finds out how to exploit the built in ads. Even worse, other adware will try and maybe remove the MS Adware, thus rendering Windows inoperable.
This is a great idea, without the ads! Ad-Supported Windows - BS.
What MS Should do is offer a "lifetime" purchase, which basically entitles you to a new version of Windows for life. They should also have "Family Packs" for multiple PCs. I have XP Pro on Three PCs and Home on one. That is ******* EXPENSIVE! I can't wait until a copy of XP can be bought for $50 for a full version.
Brandon Rusnak
http://www.rusnakweb.com
included). I have an OS X family pack that cost only a few dollars
more than the single user license, and I get to install it on FIVE
macs. Why would a household be forced to buy the same piece of
software for every computer it owns?
Would the public be stupid enough to use this? I suppose some would. But I have my doubts that this would be widely adopted, and would likely begin the first steps towards a crumbling Windows empire.
[Note: substitue Sith or Jedi and its almost funny]
--Illuminathan.
Another way is ask the anti-virus software to block all the adware:D
http://mindyou.xffer.com
I do think that they should charge for media player and the other
app.s that are bundled, the IE/Browser for another.
WHen people have to PAY for a product and not get it as the
default
then they compare products on the MERITS. This unfair
bundlling/integrating of monopoly software (Windows, Intenet
explorer, Office) stifles innovation, but also makes writing
software easier. This dicotomy has been the problem. But now
Open Source, Free software is changing, restoring things for the
better IMHO.
I notice that a lot of people have been commenting about OS/2 lately. I went over to IBM and noticed at the end of 2006 they will officially wash their hands of OS/2. I think IBM really did screw up with OS/2. They could have had the best OS around, but like most things IBM does they never put anything behind it.
They aren't the only ones who had something promising to only watch it fade into history. BeOS had lots of promise, but the guy who owned it sold it to Palm and then it just went away. There is a community out their working on a Clone/whatever of BeOS, but Palm owns the code and I don't think they open sourced it.
There has been a lot of software that was really good, but for whatever reason they faded away or became outdated. Maybe IBM could open source some of the OS/2 code, but probably not going to happen.
They didn't make any money for the people involved and people tend to stop doing things they get no return from.
If MS made Money free and got its revenue from ads, I'd be a happy camper.
-Shaam
strategy; it's the most direct but without Open
Sourcing Windows, MS doesn't want to play with
the other children in the sandbox so they don't
get the benefits of other Ad revenue. When you
have such a thin business model (AD strict) set
up it is imperative that you get cooperation from
other companies and organizations like Linux,
Gnome and Konqueror. For instance, a closed
solution not under Shared Source would be very
difficult to interpolate with other software so
Ad revenue would be very limited to MS'
'ecosystem.'
I suggest MS focus on what I call sub-
applications to their prime OS geared toward
their live site so people are inclined, but not
forced, to use their search engine plus tools
like even a desktop tool, like Gnome,
Ad-Supported that can be even used on Linux, BSD,
Solaris ETC.
This would also prove useful in privacy
situations because people would trust MS more by
being able to see the code plus writes would be
more inclined to write code that was very safe
and geared towards people's privacy.
They must break it up to become stronger. This is
where the action is.
to where they will show ads for OpenOffice at the
initial download or just get an ad or two in the
support forum.
I am sure someone will post a response message and say 'Here you go!! take the link'.
I hope someone will create a one single website where people can go and download opensource software. I also hope this website gets branding.
- Still too expensive...
- by Johnny Mnemonic November 15, 2005 10:08 AM PST
- The costs are still too high.
- Like this Reply to this comment
-
-
- still too high
- by Thunder Johny June 19, 2007 8:24 AM PDT
- http://www.analogstereo.com/jeep_owners_manual.htm
- Like this
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