Microsoft Switches to Behavioral Targeting with Hotmail
Microsoft has begun boosting its value to advertisers with behavioral targeting technology on its Hotmail free email service and other MSN properties, according to the Wall Street Journal.
Microsoft is collecting data from its 263 million Hotmail users and combining it with what it already knows about user search behavior through MSN and Live.com search. If a user searches for a particular item or subject through Live Search, Microsoft takes that data and matches it up against that user’s Hotmail profile. If that combined information in turn matches up what an advertiser has paid for, then the user will see related ads on Microsoft web pages. The new system will let Microsoft serve different types of ads to different individuals. According to Chris Dobson, Microsoft’s head of global ad sales, the behavioral targeting ensures that users will see fewer irrelevant ads.
According to comScore, Microsoft is the most visited publisher on the Internet, beating both Google and Yahoo with 501.7 million visitors in November.
The Redmond, WA giant meanwhile claims the data collected is anonymous and secret, and that it won’t reveal names and addresses to advertisers.
The system has been in operation in the US since September, and with 100 advertisers already onboard, Microsoft is preparing to roll out behavioral targeting on a global scale.
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