The result of swallowing aQuantive

Aug 14, 2007 11:38 GMT  ·  By

Microsoft is preparing to swallow the whole $6 billion worth of aQuantive, and as such, has announced the birth of the Advertiser and Publisher Solutions Group as a means to deal with completing the acquisition designed to counterbalance Google purchasing DoubleClick. In this manner, Microsoft aims to offer a comprehensive advertising portfolio backed by a cross-device and cross-media platform. The role of the Advertiser and Publisher Solutions Group will involve building, marketing and monetizing Microsoft's advertising engine as well as the company's ad platforms including Atlas, DRIVEpm, MSNDR and AdCenter. The former CEO of aQuantive, Brian McAndrews will be the leader of the APS group, subordinated directly to Kevin Johnson, president of Microsoft's Platforms & Services Division (PSD).

"Today we take a significant step forward in our ability to capture share of the $40 billion online ad opportunity and the larger $600 billion ad market, which is rapidly shifting to the world of online and IP-served platforms, including TV and gaming," Johnson said. "The addition of aQuantive's technologies and people to the Microsoft portfolio is a core, strategic investment and step forward in our plans to become one of the top two online advertising platforms in the industry."

The aQuantive merger has catalyzed some shifts among the Microsoft top executives. Steve Berkowitz, Brian McAndrews, Satya Nadella and Yusuf Mehdi all received new roles orbiting the integration of aQuantive and the building of Microsoft's new advertising platform. Yusuf Mehdi, Chief Advertising Strategist, will become the senior vice president, Strategic Partnerships in PSD. Satya Nadella's role as Corporate Vice President, Search & Advertising Platform Group remains unchanged, however, the division will be moved under McAndrews' Advertiser and Publisher Solutions Group.

"Steve Berkowitz, Online Services Group, is responsible for Microsoft's "audience" business and for delivering great end-user online services that attract users and deepen customer engagement. These online services include the MSN.com portal, Windows Live? services and Live Search. Brian McAndrews, Advertiser and Publisher Solutions Group, is responsible for building the monetization engine to serve the advertising and publishing community," Microsoft added. Berkowitz, the former Ask CEO, is still senior vice president, but received a range of new responsibilities.