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On Monday, AOL showed a number of the value in announcing a deal with Microsoft for Display Ad Business.
Under the agreement, AOL can take over management and sales of display, mobile ads and video ads that appears on Skype and other Microsoft product within Japan, the United States, Canada, Brazil and 5 European countries. The move takes Microsoft for the most part out of the show ad business where as giving AOL access to a number of the web’s most popular destinations.
In turn, Microsoft’s Bing, can power search results and search advertising on AOL websites. The arrangement may carry Bing, long a second fiddle to Google Adsense, that is being displaced because the search engine of selection on AOL sites.
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“For us, it’s another piece of validation for the way we’ve taken Bing in six years, ” said Rik van der Kooi, company vice president at Microsoft.
The deal is the latest of several by Microsoft to specialize in its core product, an effort pushed by it’s CEO, Satya Nadella. Last week, Mr. Satya Nadella released a new mission statement for Microsoft: “Empower every person and each organization on the world to attain more.”
As a part of the deal, AOL said that it’ll extend job offers to about 1, 200 Microsoft staff in marketing, sales, engineering and other different areas. Both corporations insisted there would be no job cuts due to the deal.
While display advertising could be a small slice of Microsoft’s revenue, it’s central to AOL, which is able to gain access to Microsoft’s youngest, most sought-after users.
The two corporations can split money made from ads sold-out on every other’s product, according a revenue-sharing arrangement, the terms of that haven’t been disclosed. The deal will last ten years, the companies said.
Microsoft and AOL are ancient in internet terms and still change their on-line roles in an era once ad bucks are being gobbled up by Google and, a lot of recently, Facebook. However they still have some popular digital destinations, as well as the Microsoft’s MSN portal and also the AOL’s Huffington Post news website.
Subrat Kumar is a writer with expertise in content writing for websites and blogs, press releases, whitepapers and case-studies. He loves web development management and currently freelances from Bangalore. He’s the founder of Cross Zone, undertaking the bulk of articles on technology and gadgets.
