An article published in today's MercuryNews.com titled "Hooked On Google" by Elise Ackerman explores whether or not Microsoft still has a fighting chance in todays changing technology/media landscape. When compared to the enormous success the likes of Google has experienced over the last couple years, the picture indeed looks grim. Ackerman points out in his article:
"Microsoft's page views, an approximation of how long visitors spend
at its sites, was down 12 percent in December to 18 billion, according
to the research firm. Google's page views were up 90 percent to 13
billion.
Microsoft has steadily lost ground in search, despite developing its
own search engine in 2004. As of November, Microsoft's share of
Internet searches has fallen to 8 percent. Two years ago, when MSN
search was released in beta, Microsoft share's of U.S. searches stood
at 14 percent, according to Nielsen//NetRatings.
Microsoft's Internet slide is reflected in its online sales. During
the quarter ended Sept. 30, sales for the online business unit were
$539 million, down 5 percent in a year. Google, in cruel comparison,
reported revenue of $2.69 billion, an increase of 70 percent."
In fairness, Ackerman does offer that despite the above situation Microsoft has had a rather active 2006 by introducing a "slew of online offerings":
"In addition to the
widely praised Virtual Earth, an exact 3-D representation of major
cities, there were three new search services, a new portal, online
video, classified ads, mobile e-mail and social networking. And perhaps
most importantly, there was new adCenter software released in May that
was supposed to help Microsoft make more money from its online
offerings."
However, I think this misses a more important point why Microsoft should not be underestimated.
Reason 1: They are the only major operating platform that cuts across desktop PCs (Microsoft OS), Mobile Phones/PDAs (Microsoft Mobile), TV (Microsoft iPTV) which both Verizon and Comcast are deploying across their massive Fiber and Coaxial nets, and Game Consoles (Xbox & Xbox 360).
Reason 2: Due to the reach across their installed platform base detailed above, Microsoft is in an enormously unique position to be one of the first companies to have a viable cross channel digital media offering. From behavioral targeted web, e-mail and search properties, to instant message, in-game (via their purchase of Massive Inc. last May), mobile and interactive TV advertising the folks in Redmond seem to be slowly transforming themselves from a software company to a media company. Even though it does not exist now, it does not take one to imagine Microsoft's plans for using adCenter as the hub of their emerging cross channel media universe.
Reason 3. One word: PASSPORT. Microsoft Passport accounts are central repositories for a person's online
data and can include personal information such as birthdays and credit
card numbers. They can also act as a single key to access many online
accounts.
Microsoft uses Passport authentication for its Hotmail e-mail service, MSN Messenger instant messaging service, XBox Live Service, and Mobile Services. Several online retailers, such as eBay, Canon, Expedia and Starbucks,
also use Passport authentication. Microsoft estimates there are 200 million active Passport accounts.
It does not take a rocket scientist to guess that Microsoft will use this Central Customer Information (CIF) file to help deliver more personalized content/advertising to its opt-in customers as its able to understand their behaviors and activities across digital media platforms.
Its important to note...that I am hardly a fan of Microsoft. Indeed, I have switched my work computer to the Powerbook just a couple of months ago. I am a huge fan of the iPod (with exception to their Nazi DRM platform) and also plan to be one of the first to buy an iPhone when it is released. I also do not proclaim to have a crystal ball that give me any special insight that the points made above will make a lick of difference. All I am doing is agreeing with Gartner analyst, Allen Weiner, when he states at the bottom of Ackerman's article: Don't Underestimate Microsoft.
Jeremi Karnell-President, One to One Interactive
Related to the above analyst report regarding how travel brands are executing successful disaggregated media solutions to engage with their customer, OTOlabs recently launched a new Facebook widget for Vail Resorts called "The Snowfight". Snowfight works like this - the more it snows at Vail, Beaver Creek,
Breckenridge, Keystone and Heavenly ski resorts, the more points you
get. The more points you get, the more snow you get. The more snow you
get, the more you can pelt your friends.
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