Gates says future of advertising lies on the internet

[slaughterbeck]

Not your father's Bill Gates.

LONDON - The debate about internet versus non-internet advertising will become obsolete over the next 10 years, Bill Gates said today.

Speaking at the IAB Engage 2005 conference in London, the Microsoft chairman and chief software architect told delegates that traditional media such as television, newspapers and magazines would move to being delivered via the internet within the next decade, making debates about the role of internet advertising moot.

"The future of advertising is the internet," Gates said.

He admitted that there was still a question about building big brands on the internet. "That is the thing that traditional advertising is better at," Gates said. "But as it moves to the digital realm it will be hard to talk about what is and isn't internet advertising."

He spoke of a world in which television will become far more personal.

News bulletins, for example, would deliver stories about the sports and political issues of interest to individual viewers, while items of no interest would be skipped over entirely. Advertising would also be far more targeted, through high definition internet feeds. He predicted that over 50% of advertising will become personalised.

In some aspects, namely search advertising, this brave new world is weeks rather than years away.


Gates said that the MSN Advertising Center had given advertisers new level in their ability to buy specific audiences. This is due to MSN users filling out profiles, allowing advertisers to target those interested in their products, making them more valuable to advertisers than anonymous users.

After testing the technology in pilot markets, it is set to roll out on MSN's US search function next month.

However, Gates admitted that in the future there would be issues in protecting the privacy of internet users while at the same time allowing websites to be customised.

 

[sm]

He just happened to wake up to the potentials of internet advertising after Google has made billions out of it

Just like how he launched MSN Spaces after every tom, dick and harry had already gotten into blogging

 

[ClickHoldem]

So I assume if Bill is correct the name Advertblog.com is a nice one....

 

[wildbest]

They have realized that finally. But it is too late for Microsoft now. It is much easier for Google to develop their own OS than for Microsoft to establish their own advertiser/publisher network based on their MSN search engine.

 

[Zeeble]

I agree that the future of advertising is in the internet due to the level of personalisation which can go on, and therefore increase revenues for advertisers and publishers.

However, I do not believe that the future of ALL advertising is in the internet. TV, Magazines and Newspapers will maintain market share for many years to come, although if PDA's become cheaper and mobile internet connections become cheaper, we could see a move to more mobile technologies.

 

[vimkar]

They have realized that finally. But it is too late for Microsoft now. It is much easier for Google to develop their own OS than for Microsoft to establish their own advertiser/publisher network based on their MSN search engine.

well for now Microsoft is still the biggest company ...

 

[mole]

That's the biggest bunch of self-serving marketing hype crap I have heard all this year. Currently, less than 3% of all advertising dollars are spent Online. Sure it will continue to rise, but to preach sweeping statements like this is totally willy-nilly, and a clear afterdraft of Google envy.

 

[domainprince]

Ah too bad even a genius like Bill Gates realized it so late... I agree with Colin that TV, magazines and newspapers will still be important in the coming years.