Microsoft hopes that users of it's blogging tool 'MSN spaces' and instant message tool 'MSN Messenger' will make use of new integrated advertising tools as the company looks to increase advertising dollars from free Internet services. The software giant, dreams of users associating themselves with brand themes much like an iPod lover tells his/her friends to go get an iPod. Cult branding is hot, blogs are hot, the right mix of advertising and audience could be successful. This is the beginning of the inevitable monetization of social networking tools," Forrester analyst Charlene Li said. "Microsoft is putting more interactivity in its ads. They are saying to users, 'Come and tell us about your Volvo and how much you like it.'"
Volvo and Adidas are the first advertisers. Li expects such tactics to be successful with brands like Nike Inc. or PepsiCo Inc.'s Mountain Dew.
MSN Spaces allows millions of consumers to share their stories with their friends and family or the entire world. Redmond, Washington-based Microsoft said that the free blogging service had attracted 4.5 million users during its beta phase, which began last December.
Joanne Bradford, vice president and chief media revenue officer for MSN, says, "Deeper brand integration into MSN Messenger and MSN Spaces will enable our advertisers to connect with their target audiences in more creative, spontaneous and unobtrusive ways.
"Integrating great advertising opportunities is core to our product development process, and as consumers connect through these new branded entertainment experiences in the MSN environment, the results for advertisers are higher brand awareness and favorability."
MSN Messenger will give users the option of downloading free "theme packs"- including backgrounds, emoticons and other graphics - built around an advertising campaign.
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.
