Microsoft furthers advertising assault with Navic acquisition

Stephen Withers
Thursday, 19 June 2008 13:36

IT Industry - Strategy

Not content with just bolstering its web advertising operation, Microsoft has acquired Navic Networks, an interactive advertising provider. The move once again signals the seriousness of Microsoft's intention to diversify its operations away from its traditional desktop cash cow businesses.

Navic's technology runs interactive applications on more than 35 million North American digital set-top boxes.

The company provides targeted interactive advertising, media buying services, campaign management, spot measurement and reporting, audience measurement, interactive customer care, and enhanced programming (voting, additional information, competitions, etc).

Navic also operates the Admira media placement service that uses data collected from set-top boxes to allow advertisers to match placements with target audiences.

Microsoft's advertiser and publisher solutions group already includes Atlas Solutions, a provider of advertising systems for on-demand programming. The group also provides web and in-game advertising services.

However, Microsoft has failed to muscle into Google's turf when it comes to search advertising and context-sensitive online advertising. Microsoft's attempt earlier this year to purchase Yahoo! for its advertising reach was rebuffed by Yahoo!'s board. However, the Yahoo! board still faces a proxy battle with a slate led by investor Carl Icahn and favouring the sale of all or part of the business.

So how big is the online advertising market? Please read on to page 2 .