Microsoft launches major advertising push

Microsoft aims to generate significant online advertising revenue in Thailand this year and expects it business here to grow at an annual rate of 30 to 40 per cent. It will introduce a new platform for online advertising - rich media - and will launch two new channels for online ads.

Microsoft Advertising's Southeast Asia sales director Richard Huggins said Thailand was a vital market with huge potential for rapid growth because online advertising currently amounted to only 1.1 to 1.4 per cent of the country's total advertising spending.

At the same time, Thailand was a number one market in terms of MSN audience brand awareness, which was around 74 per cent of online usage in Thailand.

Currently, Microsoft's main online advertising revenue comes from MSN services, including Hotmail and MSN Messenger. To lift its online advertising revenue from Thailand, with expected growth of 30 to 40 per cent by this year, Huggins said the company planned to launch two new channels: iCafe's online Ads and mobile advertising solutions.

iCafe is Microsoft's Internet cafe programme, which currently has about 4,000 Internet cafe members around Thailand, each equipped with at least 20 PCs. The company will launch online advertising solutions into these Internet cafes via iCafe by next month.

Microsoft will also launch mobile phone advertising in Thailand this year.

Along with the new online advertising channels, Microsoft plans to introduce a new-generation format for online advertising called "rich media".

Huggins said rich media was a new online Ad platform offering high returns on investment because it would generate more audience responses than existing online platforms such as banner Ads or click-to-write Ads.

"From now on, the click is nothing," he said. "The trend of online advertising by banner Ads is declining, but the rich media trend is growing."

According to University of Washington, the term rich media was coined to describe a broad range of digital interactive media. Rich media can be downloadable or may be embedded in a webpage. If downloadable, it can be viewed or used offline with media players such as Real Networks' RealPlayer, Microsoft's Media Player, or Apple's QuickTime, among others.

Recently, Microsoft began what it calls "Rich Media Rock", aimed at educating Thai advertising businesses of the potential of rich media and building a wider awareness.

"With this new platform and the launching of two new channels for online advertising, the company will reach its goal of 30- to 40-per-cent revenue growth this year for sure," he said.

Microsoft's online advertising revenue comes mainly from four successful business segments: telecommunications, finance, fast-moving consumer goods and technology. This year, the company plans to expand into automobile and travel advertising, Huggins said.