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Microsoft Still Several Years Away...

By: Andy Beal
2008-01-25

...from Online Ad Success. If youre an investor in Microsoft (MSFT) then youre no doubt rejoicing at the companys recent quarterly numbers.

Not only is profit up 81% from last year, but the company is so confident about the rest of the year that it raised its earnings guidance!

Now, if you were hoping that MSFTs search and online advertising unit would be a huge chunk of that profit increase, you might want to go back into hibernation"for a few more years!

Microsoft gave credit for its profit increase to its launch of software"mostly Vista"and not much else. In fact, according to MarketWatch, Microsoft lost $245 million from its "online services" unit (although revenue did increase).

OK, but surely MSFTs search efforts are about to kick-in right? Wrong!

Chief Financial Officer Chris Liddell doesnt want you to get your hopes up.

"We see it as a multiyear journey that were going on," he said, adding that Microsoft hopes the unit will "be at a critical mass in several years."

Several years, really? By which time, well all have brain implants and wont be using the web anyway"thats when MSFT will finally crack 10% share!

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About the Author:
Andy Beal is an internet marketing consultant and considered one of the world's most respected and interactive search engine marketing experts. Andy has worked with many Fortune 1000 companies such as Motorola, CitiFinancial, Lowes, Alaska Air, DeWALT, NBC and Experian.

You can read his internet marketing blog at Marketing Pilgrim and reach him at andy.beal@gmail.com.


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