Microsoft Storms Madison Avenue

NEW YORK (AdAge.com) -- Madison Avenue, make room for Microsoft.

Last week's $6 billion agreement to buy aQuantive is not just a bid to catch up with Google and Yahoo in ad sales. It also gives Redmond something it hasn't had before: Its very own ad agency. The addition of the highly regarded Avenue A/Razorfish to its portfolio signals that Microsoft,
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'When we think about [Avenue A/Razorfish] being the leading provider of interactive services we look at that asset much like aQuantive did,' said Joe Doran, general manager of Microsoft Digital Advertising Solutions.

Whole new set of players
Without any suggestion by Microsoft that a near-term divestment of the agency is in the works, an ad industry still trying to put in place the talent and offerings to grapple with the technological flux sweeping the media world could be forced to consider competition from a whole new set of players. Players that have that very stuff in their DNA, who know, for instance, that understanding how to manipulate a company's search-engine results is becoming as important, if not more so, than scattershooting ads across mass media.


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