{"id":19306,"date":"2022-11-28T15:22:31","date_gmt":"2022-11-28T15:22:31","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/11\/28\/microsoft-is-planning-to-double-the-size-of-its-ad-business-to-20-billion\/"},"modified":"2022-11-28T15:22:31","modified_gmt":"2022-11-28T15:22:31","slug":"microsoft-is-planning-to-double-the-size-of-its-ad-business-to-20-billion","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/11\/28\/microsoft-is-planning-to-double-the-size-of-its-ad-business-to-20-billion\/","title":{"rendered":"Microsoft is planning to double the size of its ad business to $20 billion"},"content":{"rendered":"

<\/a>\n<\/p>\n

\n

Microsoft is looking to double its ad business from $10 billion a year to $20 billion in revenue. Leadership didn\u2019t specify a timeframe, but if their goal is reached, it will become the sixth-largest digital ad seller worldwide. <\/p>\n

Microsoft\u2019s multiple ad properties. <\/strong>Microsoft\u2019s ad properties include Bing search, Xbox, MSN and many other websites that use Xandr<\/a> to sell digital ads. Microsoft also introduced vertical ad formats, credit card ads<\/a>, and expanded its audience network into 66 new markets. <\/p>\n

Search and news revenue up 16%.<\/strong> Microsoft reported their FY23 Q1 ad revenue is up 16%. But CFO Amy Hood told analysts during the earnings call that \u201creductions in customer advertising spend, which also weakened later in the quarter, impacted search in advertising and LinkedIn marketing solutions.\u201d<\/p>\n

But the search and advertising bump was \u201cdriven by higher search volume and Xandr.\u201d Nadella says Microsoft has \u201cexpanded the geographies we serve by nearly 4x over the past year.\u201d Microsoft Edge may also be helping out with Bing search and advertising revenues. \u201cEdge is the fastest growing browser on Windows and continues to gain share as people use built-in coupon and price comparison features to save money,\u201d says Nadella.<\/p>\n

Rob Wilk, corporate vice president of Microsoft Advertising said that he intends to make buying ads across assets easier for partners. \u201cWe have a lot of plumbing work to do,\u201d he said in an October interview<\/a>. \u201cMicrosoft also needs to differentiate itself from competitors that have similar properties but have far more mature advertising businesses, like Google. Wilk said Microsoft is more \u201cpartner oriented\u201d than Google.\u201d<\/p>\n

\n

<\/p>\n

\n
\n
\n

Get the daily newsletter search marketers rely on.<\/p>\n<\/p><\/div>\n<\/p><\/div>\n<\/div>\n

<\/p>\n

\n

Netflix.<\/strong> The new Netflix partnership was launched this month and allows advertisers to purchase ads through the demand side platform Xandr. Microsoft will take a reseller fee, and experts predict that the partnership will be a huge revenue driver, easily clearing $10 billion in ad sales or more. <\/p>\n

Gaming. <\/strong>Another great revenue driver for Microsoft is gaming. The acquisition of Activision Blizzard is still pending, but in-game ad revenue could be a unique selling point if the ads can be bought through Xandr. <\/p>\n

Dig deeper. <\/strong>You can read the full article from Business Insider here<\/a>. <\/p>\n

Why we care.<\/strong> As Microsoft’s ad business grows, it means greater opportunities for advertisers who are looking to expand their reach beyond Google and Facebook. Additional options such as in-game ads, Netflix, and the demand-side platform Xandr will open doors for both publishers and brands alike. <\/p>\n\n

\n\t\t\t\t\t\t\tAdd Search Engine Land to your Google News feed.<\/a><\/em>\u00a0\u00a0\u00a0\u00a0\"Google