Microsoft executive discusses playing catch-up with Google

Having discussed the plans of Ask.com to take on the likes of Google last week, an executive in charge of Microsoft’s ad-funded business has done an interview with Cnet News.com about why he left Ask.com (the lack of money to put plans into practise) and joined Microsoft (lots of money, lots of potential).

He highlighted the increase in relevance that advertising online now enjoying, with users getting more of what they genuinely want, more often. There was also an interesting discussion about whether people would now have access to software based on payment by advertising, rather than traditional one off payments. CNet didn’t shy away from the tricky questions, from Ad revenue being down at Microsoft, to Google’s continued investment. In particular the subject of YouTube was broached. Confirmation came that Microsoft could appreciate Google’s strategy, and in particular, the fact that they didn’t buy the technology behind YouTube, but rather the audience that the site enjoys. The opportunity was also taken to promote Soapbox - Microsoft’s answer to YouTube.

Probably the most interesting point that the MS spokesperson made, was the following:

Are there areas that people are pushing that overestimate what advertising can do?
Berkowitz: I think search will hit a ceiling at some point.

And what a note to end on! Read the full article here.