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03.05.07

Microsoft: Most Ad Spending Will Soon Go to Digital

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MarketingVOX: Speaking at the AAAA media conference, Microsoft's Mich Matthews said the majority of the company's ad spending will be going toward digital media within the next few years, reports MediaPost.

Based on Microsoft's nearly $1 billion in spending in the U.S. alone, that means a significant amount of money will be spent on digital ad buys. The shift follows consumers, who are spending more and more time online.

Already, Microsoft has three percent of its advertising budget devoted to experimental marketing efforts such as RSS advertising and more. It's all part of an initiative, highlighted by the recent Xbox 360 campaign, that seeks to better engage with members of the target audience and involve them more deeply in the marketing.

TV, print and other traditional media will continue to play important roles, Matthews told the 4As, but they will be used in a targeted fashion. Online is being seen as increasingly attractive because of the enhanced reporting abilities it brings with it, he said.

Matthews said the digital marketing team will be involved in all planning sessions - a sign of digital's growing importance - even in campaigns in which it might not be taking the lead.

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