Microsoft Creating Global Ad Network

Microsoft on Wednesday said it had begun to test ads across its Microsoft Office Live, Windows Live Mail and MSN Spaces services with the help of 20 global marketers. The company said the effort is an extension of a strategy first revealed in November of last year.

At that time, Microsoft chairman Bill Gates said the company was moving into an era where services would be supported by advertising and subscriptions. Microsoft said Wednesday that the revenues generated through this new advertising program would follow that pledge.

To be tested are several different ad formats to ascertain which provides the best return on investment for advertisers, and offers the best value to the consumer experience. Among the companies participating are Coca-Cola Brazil, JCPenney and Monster Worldwide.

Testing of the ads would begin on MSN Spaces in Australia and Italy, the company said. In Windows Live Mail, several markets would participate in the tests including Australia, Brazil, Canada, China, France, Germany, Italy, Spain, the United Kingdom and the United States.

Microsoft said tests of the ads on Office Live in the United States have immediately sold out of available inventory. The company plans to eventually spread the test to other Microsoft sites, and is working with advertisers to cater to their needs and look for the best advertising practices for Windows Live.

Testing is expected to continue throughout the year.

"With ad-supported software opportunities, we're able to offer great services at low or no cost for our consumers and a vast ecosystem for advertisers," said Joanne Bradford, corporate vice president for Global Sales and Marketing at Microsoft.