Microsoft Ad Revenue Up 23% in Q3
Microsoft said online ad revenue during its just-ended third quarter was up 23% over the same period in 2006.
In a conference call following the release of its Q3 financial results late Thursday, the company said its adCenter network, which places pay-per-click ads next to relevant search results, was performing better than anticipated.
“We are now monetizing more effectively in the U.S. on our own adCenter platform than we had under third-party [ad provider] Overture at this time last year,” chief financial officer Chris Liddell said. Microsoft substituted its own PPC ads for those delivered from Yahoo!’s Overture network last July.
Display ad revenue grew 4% over Q3 2006. “Our display growth was in line with what is a healthy market, driven by an increase in page views,” Liddell said.
The company’s Online Services unit, comprised of search, the adCenter platform and MSN, saw revenue increase 11% over Q3 2006 but also posted a $200 million net operating loss, compared to a loss of $24 million in the same period last year.
Overall, Microsoft’s quarterly profits were up 65% from the same quarter last year to $4.9 billion. Revenue for the quarter was $14.4 billion, up 32% year over year, largely on sales of the new Vista operating system.
