It's official! This morning Microsoft announced the completion of the $6 billion aQuantive deal announced in mid-May of this year. This is a key piece in our online advertising strategy. Microsoft can now roll-out a monetization story around MSN and Windows Live with the solutions gained from Atlas, DrivePM and Avenue A/Razorfish. The combination of Microsoft and aQuantive will bring choice, expanding services and healthy competition to the online market and benefit users, advertisers and publishers. With a single acquisition, Microsoft has gained three critical components:
1. Atlas provides a single-point feature-rich solution for agencies, advertisers and publishers to manage and optimize their campaigns, spend and revenue across the web for display and search advertising as well as rich media (such as video).
2. DrivePM is a top-tier ad network with a large and existing customer-base of top-tier agencies and advertisers.
3. Avenue A/Razorfish is a leading interactive marketing and media firm with talent that understands how to optimize ad campaigns for the online market.
Add to this product line-up the acquisition of AdECN and Microsoft has a powerful offering. A lot of startups have been asking us when Microsoft will expand its advertising services since it is always better for the market when there is not a single source. WIth the close of this announcement, I think you can expect to see Microsoft starting to address these questions. I will follow the developments and blog as they unfold.
The online advertising market is heating up and the next year is going to bring significant change with this announcement and the outcome of Google's DoubleClick acquisition announced in April 2007 still under review by the FTC.
My colleague Don Dodge blogged about the aQuantive deal when it was first announced and the AdECN acquisition announcement.