April 08, 2005

Microsoft hopes customers will help spread advertising word

In a bid to increase advertising dollars from free Internet services, Microsoft has integrated hip advertising into their messenger and MSN spaces. Microsoft hopes to attract users who are so taken by the advertising campaigns that they choose to associate themselves with the brand much like a person might buy a Starbucks Corp. coffee mug. The latest version of Microsoft's instant messaging product, released late Wednesday after several months in test form, will give users the option of downloading free "theme packs"- including backgrounds, emoticons and other graphics - built around an advertising campaign reports Seattle Times

MSN Messenger 7.0 includes PC-to-PC videophone and voice-only services, PC-to-mobile text messaging, available in the spring; and photo-sharing options.

Aanalyst Charlene Li with Forrester Research said Yahoo Inc.'s messaging service has been providing a similar service for some time. She expects such tactics to be successful with brand brands like Nike Inc. or PepsiCo Inc.'s Mountain Dew that people think are cool.

"The fact of the matter is people have very strong affinities for brands," she said.

Microsoft also is releasing the official first version of MSN Spaces, a free personal Web journal system that debuted in test form in December.

Redmond, Washington-based Microsoft said that MSN Spaces had attracted 4.5 million users during its preliminary test phase, which began last December.

Blogs, short for "Web logs," have become a popular way for Web users to publish their opinions, observations and information on the Internet to a wide audience.

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