The Microsoft adCenter Code Blog

MSN’s has been quiet about contextual advertising, still an early project that is not even yet in beta. They will of course be competing with Yahoo Publisher and Google Adsense but to do so effectively they will first need to builder advertiser volume. I certainly feel that MSN can succeed in the contextual ad space, likely bringing new features to the market as it has done with its beta paid ad program, MSN adCenter.Search marketers and others voiced views on the program, reportedly called ContentAds, which is expected to roll out in beta form sometime this year.

I feel that MSN probally sees contextual advertising as a strategic investment for Microsoft one they will have to make to compete in the search arena. Much like the approach MSN took on the paid search side, they have been doing a lot of due diligence on the state of the [contextual] market they’re reaching out to both publishers and advertisers to see where the shortcomings in existing programs are.

But to gain revenue share versus Google, Yahoo and smaller ad networks including Miva, MSN will need to have a volume of advertisers, differentiate its program and possibly distribute ads across other Microsoft applications. (makes you wonder a bit more about Vista) One way or another contextual ads are becomming more and more important both for publishers and advertisers. I think we may be surprised at the speet that MSN eventualy rolls out.

My gut tells me they are futher along then most people think they are and that it is simply the inventory of advertisors that will be the biggest factor in the final launch date.

~ Jack Spirko