Jana Technology Services Blog

May 8, 2007

Microsoft to Acquire Mobile Ad Company ScreenTonic

Filed under: Technology — janats @ 3:15 pm

SEATTLE (Reuters)—Microsoft Corp. said on Thursday it agreed to acquire European mobile phone advertising company ScreenTonic to gain a foothold in the rapidly growing business for placing ads on mobile phones.ADVERTISEMENTMicrosoft, the world’s largest software maker, did not disclose the financial terms of the deal. Paris-based ScreenTonic is one of the first companies in Europe to develop a platform to manage and place ads on the mobile Internet.ScreenTonic also serves as an advertising agency for companies looking to develop marketing campaigns on phones. Investors in the start-up include venture capital firm 3i and I-Source Gestion, according to ScreenTonic’s Web site.Mobile phone advertising is still a nascent industry compared to Web advertising, but it is an area being targeted by Microsoft and Web rivals Google Inc. and Yahoo Inc.Advertising on the Internet, especially pay-per-click ads alongside search results, erupted into a multibillion industry within a few years and online companies hope mobile phones will follow a similar growth trajectory.”The acquisition of ScreenTonic will be part of our long-term strategy to deliver ad experiences that map to the (mobile Internet),” said Steve Berkowitz, senior vice president at Microsoft’s online services group, in a statement.ABI Research forecast global mobile marketing and advertising will increase sixfold to $19 billion by 2011 from an estimated $3 billion by the end of 2007.Google, the Web search leader, has built a dominant online advertising business around its search engine and strengthened its position by agreeing to acquire online ad supplier DoubleClick for $3.1 billion last month.Microsoft, slow to recognize the power of Web advertising, has been playing catch-up by building its own search engine years after Google and developing its ad placement system.Its online advertising is still dwarfed by Google.

Microsoft to Acquire Mobile Ad Company ScreenTonic

This looks to be an astute move on Microsoft’s behalf.  Mobile advertisements is probably one of the frontiers still to be harvested as far as electronci ads go and given Google’s stranglehold on online advertising it makes sense for Microsoft to look for a market they can still dominate.

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  1. Online advertising is really heating up. Gigantic companies seems to be buying or merging with smaller and successful companies on a regular basis. This is a great time for any Internet ad agency to take advantage of.

    Comment by Merben John Salarda — May 9, 2007 @ 5:23 pm | Reply

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