MSN developing new search engine
29 July 2004
Microsoft is reported to be investing $US5 billion in its MSN internet operation to develop a new search program for its users.
According to reports on the AustralianIT website, the search facility will enable users to pose questions and receive answers without having to leave the MSN web site
This will thus mean users will spend more time within the reach of its advertisers.
The new search engine is set to launch in some form before the end of the year, and will increase the already hot competition for search advertising revenue with competitors Google, the Yahoo-owned paid search provider Overture and the recently launched Sensis search service in Australia.
Commenting on the launch of the new service MSN global senior director of strategy Christa Davies said that display advertising, including integrated content deals, would remain MSN's largest revenue source.
From $4.4 billion in 2002, she predicted they would generate $11.5 billion by 2006, with email advertising worth an additional $1.5 billion. Australian online advertising alone was worth $236 million last year, AustralianIT reports.
"The global non-search advertising business is going to be huge - it's almost double the (size of the) search market," Ms Davies said.
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