More on that crazy $6 Billion

22 05 2007

I am talking about the new-found bravado from Microsoft who finally found the balls to buy a company (read: aQuantive). Sitting on at least $30 billion of spare cash, it always stumps me why they keep losing out on the cool deals to Google who only has half their valuation. This time round, it looks like they lost their nerve and bought in panic..

TheStreet.com fills us in with sagely advice:

aQuantive gets most of its revenue — 60%, by investment bank Goldman Sachs’ estimates — by selling services to advertisers who want to reach customers through digital forums. That sets aQuantive apart from other online ad companies like DoubleClick, which was recently acquired by Google, or ValueClick, which has seen its stock soar amid takeover speculation. Those companies are known for selling technologies to Web publishers who want to place ads on their own sites, not advertisers.

And while aQuantive is often mentioned in the same breath as DoubleClick or ValueClick, it’s unique in having the ear of so many top notch online advertisers. And that’s why aQuantive is so valuable to Microsoft. The traditional method of selling software in shrink-wrapped packages and through expensive annual licenses is being displaced by a more nimble way in which software is delivered over the Internet. Some of this so called Software-as-a-Service, or SaaS, model will rely on having ads placed next to it, which Microsoft knows.

Its interesting how TheStreet points towards SaaS as a potential revenue goldmine for Microsoft, we know Salesforce is the king on the SaaS front. But it looks like the big ol’d dinosaur organization from Seattle is one step behind their fleet-footed Mountain View nemesis:

Google and Salesforce.com are reportedly discussing a broad partnership that might help them in their ongoing battles against Microsoft. Both companies are the largest in their chief markets - Web search and advertising for Google and online customer relationship management for Salesforce - and have recently expanded into areas of business software now dominated by Redmond, Wash., software giant Microsoft. (via Mercury News)

The drama doesn’t seem to end, does it? Stay tuned for the next episode…



BjornLee.com gets 1st paid Listing!

22 05 2007

… which means we should celebrate!!!

Well, not quite yet, so hold your guns and bottles.. Just wanted to oil my rusty gears again with this post… I finally get my first fully paid advertisement on my new domain! AdultLearn is an online education provider for their client educational sites. This came via my earlier blog post on Victoria Junior College here . Amazing, ain’t it?

With this, I have diversified my blog’s revenue model and certainly goes some way to paying my hosting fees. Who says blogging doesn’t pay? I don’t even have to rely on ethically dubiously practices like Pay-per-Post. ;) I am also consciously shying away from using Google Adsense which often serves up irrelevant ads especially for a blog like mine. At least Adultlearn provides a more contextually relevant ad placement. If you are keen to blog for money, USA Today has some pointers.

Having said that, I am trying to think of creative ways to make my ads more engaging and relevant, a challenge since I dun want static display ads with no relevance to your reading experience. Anyone has bright ideas? :D





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