20/12/2007

Google and Microsoft are trying to be the leader in online advertising by teaming up with innovative new companies that can give them ad revenue using each other's formats.

By investing into new online search advertising platforms that use increasingly advanced techniques to target consumer tastes, the two mega companies are crossing over to new territory, according to lead analyst Aleksandra Bosnjak at StrategyEye Digital Media.

"It is all going to be about advertising revenue in 2008," said Aleksandra.

Companies like Disney and NewsCorp are already showing that traditional media can benefit from digital distribution.

Microsoft's acquisitions include aQuantive, worth $6 billion, which provides targeting tools for internet advertisers and publishers, which will compete with Google's DoubleClick's service of placement of advertising space.

Google meanwhile bought DoubleClick at $3.1 billion which if approved by US and European regulators, will control 83 per cent of the contextual ad market after the deal goes through.