April 08, 2005

MSN opens blogs and IM to advertisers

Software giant, Microsoft yesterday announced new opportunities for advertisers to integrate their brands into the latest version of MSN Messenger and MSN Spaces.

Microsoft is looking to capitalize on the cult brand concept, the company hopes that users would associate themselves with a brand much like a person might buy a Starbucks Corp. coffee mug. If that does not register, how about iPod fans who tell friends how great the ipod is ( that is the idea). Volvo and Adidas are the first advertisers. "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.'" reports Zdnet

Li expects such tactics to be successful with brands like Nike Inc. or PepsiCo Inc.'s Mountain Dew.

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.

MSN Spaces allows millions of consumers to share their stories with their friends and family or the entire world. The new campaign from Volvo taps into the power of blogs. Redmond, Washington-based Microsoft said that the free blogging service had attracted 4.5 million users during its beta phase, which began last December.

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