Microsoft to trial ad-supported Works

Stephen Withers
Friday, 03 August 2007 02:42

Business IT - Technology

A free, ad-supported version of Microsoft Works will be piloted as part of the software bundle on selected PCs.

Works is a low cost integrated package often included with new PCs. While it is significantly less capable than Office, it provides sufficient functionality for many home users.

The ad-supported version will presumably further reduce the already low price of the OEM version, perhaps to zero. The retail version currently costs $US40.

A 'starter set' of advertisements built into the software will be augmented with fresh ads when the user connects to the Internet and displayed in the lower corners of the screen. They will be delivered by Microsoft's advertising platform, currently used by MSN.com and Live.com.

The ads will be targeted at the demographics of typical Works users, not according to the content of the documents.

The "very small" trial will begin when Works 9.0 ships later this year, and will run until mid-2008. It will allow Microsoft to determine whether the arrangement is acceptable to users, whether the incremental advertising income offsets the licensing revenue forgone, and how effective it is for advertisers.

It also provides Microsoft with a way of competing against free online services such as Google Docs & Spreadsheets.

The ad-supported version (Works 9.0 SE) will be offered alongside the regular version, and users will be given the opportunity to upgrade to the ad-free Works or to Office.

Microsoft recently took steps to become an even bigger player in the web advertising market with the establishment of a new applied research centre and the acquisition of an advertising exchange.