by Matt Asay

Microsoft + advertising may help it to drop the proprietary ball-and-chain

analysis
May 18, 20071 min

So, Microsoft is buying aQuantive (formerly known as AvenueA/Razorfish) in a $6B takeover of the advertising agency/consultant. It's an interesting acquisition, as Larry Dignan suggests:On the surface, the integration of the two companies should be relatively easy. AQuantive, with 2,600 employees, is based in Seattle. And the capabilities and systems aQuantive brings to the table don’t overlap with Microsoft’s c

So, Microsoft is buying aQuantive (formerly known as AvenueA/Razorfish) in a $6B takeover of the advertising agency/consultant. It’s an interesting acquisition, as Larry Dignan suggests:

On the surface, the integration of the two companies should be relatively easy. AQuantive, with 2,600 employees, is based in Seattle. And the capabilities and systems aQuantive brings to the table don’t overlap with Microsoft’s current structure that much. Microsoft plans to fold aQuantive into its online services unit.

Aquantive brings three primary systems to Microsoft: Atlas provides tools for publishers and advertisers to better monetize ad inventory; Drivepm matches campaigns and inventory; and Avenue A/Razorfish, which designs ads.

But I believe the acquisition brings something completely different: a way out of Microsoft’s reliance on proprietary hooks into its software. I’m no Utopian – I don’t believe that Microsoft is shedding its proprietary moorings anytime soon.

But I do believe that as Microsoft begins to experiment with alternative ways to monetize a product, it will learn that indirect methods may actually provide the key to its next $44B in sales. That’s great for Microsoft, as well as the rest of the industry. Again, I’m not holding my breath, but I’m optimistic.