Microsoft writes off aQuantive’s $6.2 Billion value, the 2007 acquisition fails to deliver results – Part 2

Google the king in internet business seems to have mastered the art of handling everything web. The company does not only hold the throne in online search but also is the king of online advertisement. Google purchased DoubleClick, an online advertisement agency, in 2007, a few weeks earlier than Microsoft’s buy out of a Quantive.

Not only was the purchase of DoubleClick worth half the price of aQuantive, $3.1 Billion, but also over a period of five years it has become a money-making machine. DoubleClick has helped Google vault into a leadership position in display advertising. That may grow into its second big business after search advertising.

The aQuative however, does not curtail Microsoft’s business of online advertisement. The major constraint in this regard is that online advertisement is mandatory to the company to survive in the internet-based world. Most of the personal computing now depends on the web, majority of the applications both desktop- and mobile-based are internet dependent. Online adverts are essential to remind the audience that the company is in existence, but that is Marketing 101.

Microsoft’s acquisition of Yahoo, Inc.’s search business in 2008 was a major step in promoting its own search engine Bing. Now MS is after the beleaguering internet-based company’s online advertisement business as well. And Microsoft also said today that revenue per search on its Bing search engine is rising along with its market share, though the latter growth has been slow given Google’s dominance.

Some experts, including Microsoft’s own, are touting the new Windows 8 might open new doors for the company in online advertisements. There are two different divisions now working on the online advertisements, Online Services Division and Windows/Internet Explorer Division.

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Posted by Usman Khalid on Jul 3 2012. Filed under Sci-Tech. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.