Microsoft is committed to establishing a strong presence in the advertising industry. Microsoft's Chairman Bill Gates, revealed at the company's Strategic Account Summit 2007 in Seattle on May 8, 2007, that the shift to the digital environment will transform the firmament of the advertising industry.

Microsoft's position in the ad ecosystem food chain is at the bottom, and the Redmond Company has lost additional ground to Google following the acquisition of DoubleClick. Recent rumors of a Microsoft and Yahoo merger, designed to counterbalance Google, have remained at the level of speculations, although both Internet giants revealed that they are considering alternative forms of collaboration.

"So when it comes to advertising, we as an industry, everyone in this room, companies like Microsoft, the other vendors involved in IPTV, and ad serving systems and what have you, we really just are scratching the surface of what's possible with this technology. But, if you think of what's possible in the future, the near-term, and the longer-term, it's really the best of both worlds, because IPTV combines all the rich emotive, multi-sensory story telling that you have with television advertising, with all the interactivity, the target-ability, and the measurability that you have on the Web," Gates stated.

Advertising for Microsoft will undoubtedly mean going against Google. And this is an experience that Microsoft is well accustomed to on the search market. While Google has become increasingly synonymous with Internet search, Microsoft is struggling to keep a constant third position with a disparate strategy involving MSN and Live Search.

Google, a company with a market value estimated at $147 billion has accounted for a $7.3 billion online ad revenue in 2006. By comparison, Microsoft, worth $296 billion, has only produced a $$2.29 billion online ad revenue the past year.

"Some of you have asked if we remain as committed following the announcement of Google's proposed acquisition of DoubleClick. Many of you have also expressed your concerns about the impact that such an acquisition will have on the online advertising landscape. While we share your concerns, we maintain our sharp focus on this industry, and we will continue to invest heavily in innovation and partnerships in this area," said Kevin Johnson, Microsoft President, Platforms & Services Division.