Dentsu-Microsoft Forge AI Powered Alliance for Agency Brands
Artificial intelligence is overtaking the world. Every industry is rushing to incorporate AI powered tools into its business models, especially the global advertising industry. A collaborative agreement between Dentsu and Microsoft has been announced in yet another case. By creating consumer-ready solutions, Dentsu’s staff will be able to increase client productivity and expansion by utilizing Azure OpenAI technology.
What’s in it for Dentsu?
The agreement will also be guarantee employee access to a secure, enterprise-level development ecosystem , which is an expansion of the already-existing relationship. The partnership between Dentsu and Microsoft aims to give staff access to cutting-edge tools so they can create prototypes more rapidly and effectively. The centralized organizational structure of Azure OpenAI eases the workload on the business and product groups while fostering rapid client development.
AI Connective is diversified online network dedicated to knowledge exchange among all agency brands. Azure OpenAI technologies are accessible globally via this tool. Dentsu’s current systems and databases incorporate the artificial intelligence frameworks as a crucial part of its overall strategy. Additionally, it reduces security concerns while promoting client-centered growth. The fruits of the result have already been borne with the development of two upcoming CXM solutions- Merkle GenCX and AI-playground LATAM
Merkle GenCX uses the potential of generative AI to provide an unforgettable client experience. Regarding LATAM, it offers tailored solutions that integrate audience databases with cutting-edge technologies. Customers benefit from the tool’s increased daily effectiveness and operational dexterity.
Here’s what they said!
According to Simon Crawshaw, Worldwide Lead for Media and Entertainment, Microsoft, both Microsoft and Dentsu share the vision to work towards a responsible AI. This is followed by Azure AI and Co-Pilot’s ability to drive creativity and productivity. He stated,
We are working closely with dentsu to enable AI to drive business and technological outcomes that will fuel a symphony of ideas, orchestrate captivating narratives, elevating brands and campaigns, and provide a powerful platform for their clients.
Dominic Shine, Group Chief Information Officer for Dentsu commented,
By extending our deep partnership with Microsoft and rolling out Azure OpenAI infrastructure, we’re making AI resources accessible to all dentsu employees within a framework defined on ethical and responsible AI principles.
The Dentsu-Microsoft partnership reflects the former’s dedication to employees’ access to the latest AI platforms. Their main goal is to give their staff the tools they need to take advantage of evolving technologies. AI-powered innovation and brand success have never been greater owing to this collaboration between Dentsu and Microsoft. This collaboration should produce outstanding brand experiences and enable the digital workforce.
Read More: Google and Omnicom Collaborate to Enhance Advertising with Generative AI
Microsoft and Meta Deepen Partnership to Boost AI Capabilities with New Gen Llama
Microsoft and Meta, formerly Facebook Inc., have announced the launch of their next generation of large language models (LLMs). Llama 2 will be the latest addition to their growing family of LLMs on Azure and Windows. The collaboration will deepen Microsoft and Meta’s existing alliance. Meta identified Microsoft as their preferred partner with Llama 2. Currently, Llama 2 is accessible to businesses and researchers. They intend to allow access to a large cohort of businesses. Customers will also include academics, tech industry experts, and anyone else who recognizes the value of accelerating AI technology advancements. It is currently under public review.
Llama 2’s capabilities will offer developers flexibility in the type of model they wish to create and support open and experimental models. The approach aims to make it possible for organizations and developers to create generative AI tools and experiences. Meta and Microsoft are dedicated to liberalizing AI and its benefits.
John Montgomery, Corporate Vice President, Azure AI at Microsoft, in the announcement stated,
The announcement builds on our partnership to accelerate innovation in the era of AI and further extends Microsoft’s open model ecosystem and position as the world’s supercomputing platform for AI.
Democratizing AI through the power of partnership.🎉 We're excited to welcome Llama 2 from @Meta to @Azure and @Windows: https://t.co/OJyYP9sVBA
— Microsoft (@Microsoft) July 18, 2023
Customers will now be able to modify and implement Llama 2’s 7B, 13B, and 70B parameters in a more direct and safe manner on Azure. The model will also support Windows PCs. Developers can use Llama by focusing on DirectML execution source through ONNX Runtime. In addition to integrating AI into their apps, it will produce a seamless workflow.
Meta and Microsoft’s evolving relationship
For AI development, Meta and Microsoft have a longstanding relationship. The collaboration first began with the integration of ONNX Runtime with PyTorch to refine the developer experience and Azure as Meta’s choice for a strategic cloud provider.
Azure’s specially designed AI supercomputing platform is created to assist the world’s top AI organizations in developing, honing, and utilizing some of the most resilient AI capabilities. The Llama 2 model equips programmers with tools to use Azure AI’s robust modeling, training, modifying, interpreting, and supporting abilities. It will be the latest addition to Microsoft’s Azure AI model catalog. This catalog will act as a central point for foundation models. This will enable developers and machine learning (ML) experts to find, examine, customize, and distribute huge pre-built AI models widely.
A Vow to Responsibility
Both companies pledge to build AI that is centered around transparency and access. They know the risks that accompany AI. Meta and Microsoft are committed to building responsible AI models and provide a number of resources to help those who use Llama 2
- Safety testing: Several internal and external efforts have red-teamed or safely tested the finely refined models. To help improve the model, their teams created an aggressive prompt. They also commissioned third parties to conduct external combat testing to find gaps in performance.
- Transparency: Both companies promise to outline the model’s tuning and evaluation procedures as well as point out any areas of improvement. Their transparency plan reveals known difficulties and problems they have encountered, offering suggestions to resolve them.
- Responsible resource for developers: In order to help developers with responsible development and safety assessments, they have also created a user guide. These procedures discuss the best practices for the best research underway right now on ethical generative AI.
- Suitable Use Policy: To ensure these models are used ethically and responsibly, policies have been implemented prohibiting specific use cases.
Llama 2 will help programmers build customized experiences via a GitHub repo. They can fine-tune LLMs to meet their specific needs on Windows PCs using Subsystem for Linux and highly capable GPUs. Both Meta and Microsoft agree that making LLMs publicly accessible will aid in the creation of useful and secure generative AI
We are eager to witness what innovations and advancements this partnership brings in order to revolutionize the realm of AI!
Read More: KPMG-Microsoft Amplify Partnership To Unlock New AI Possibilities
KPMG-Microsoft Amplify Partnership To Unlock New AI Possibilities
Microsoft and KPMG have agreed to advance their coalition for mutual benefit. Both major industry players have agreed to cooperate on developing personalized artificial intelligence over the next five years. This partnership will strengthen KPMG’s professional services across several business segments. This will include building a more skilled workforce, implementing safe and secure AI solutions, and ensuring society’s safety.
KPMG and Microsoft are entering a substantial phase in their relationship, which began in 2000. The goal will be to take advantage of the growing prospects for AI in the business world. The expanded cooperation will enhance client engagements and employee experiences in a more responsible, trustworthy, and sound manner.
Satya Nadella, Chairman and CEO at Microsoft, in the announcement remarked,
We have a real opportunity to apply this next generation of AI to help transform every industry, including professional services. Our expanded partnership with KPMG will bring together AI innovation across the Microsoft Cloud with KPMG’s tax, audit and advisory expertise to empower its employees and unlock insights for its customers.
Today, we’re expanding our partnership with @KPMG, as we bring together AI innovation across the Microsoft Cloud with KPMG’s tax, audit, and advisory expertise to empower employees and unlock insights for customers in the new age of AI. https://t.co/KiAhfGg31A
— Satya Nadella (@satyanadella) July 11, 2023
The deal will include the accounting firm’s multibillion-dollar pledge to Microsoft cloud and AI services. The agreement is said to unlock potential incremental growth projections in areas such as cybersecurity, cloud computing and tax services. KPMG is estimated to gain more than $12 billion in benefits from the agreement.
KPMG will have prompt access to Microsoft’s 365 Copilot, cloud, and Azure OpenAI Service offerings. As a result, KPMG’s global workforce of more than 265,000 will be equipped to unlock their vision, provide quick analysis, and gather detailed strategic information. The professionals will also head the technologies for a select group of businesses across the organization globally. Moreover, KPMG and Microsoft will be able to support 2.5K combined clients to keep up with AI developments. They will be able to overcome business obstacles.
What’s in it for KPMG?
The KPMG-Microsoft extended partnership will benefit KPMG’s audit, tax, and advisory business sectors. This is a detailed analysis of how it will be helpful to KPMG.
Audit
KPMG Clara is KPMG’s smart audit platform and has 85,000 audit personnel responsible for auditing more than hundreds of thousands of works annually. They will be able to invest in analytics, artificial intelligence, and Azure Cognitive Services to enhance their audit process. As a result of this method, shareholders and capital markets will understand high-risk areas in audits and sector-specific risks. This collaboration will enable KPMG professionals and clients to discover new horizons.
Tax
Clients will get access to KPMG’s Tax and Legal technology through KPMG Digital Gateway, one of the firm’s single platform solutions. It will enable them to have explicit access to their data collection and a more comprehensive management outlook on their tax functions. In addition, KPMG professionals will work with a generative AI powered virtual assistant for establishing tailored client service models. This will help tax specialists become more proficient. It will also offer income-generating opportunities like product experience development and knowledge management of tax laws.
Advisory
Client-based specialized services will be deployed using an AI development and knowledge platform integrated into Azure. With ethos and security at the center, the agreement will advance their competitive advantage and productivity.
Making an impact
The deal will also extend to commercial prospects. KPMG and Microsoft will discover and contribute to allied opportunities where they will join forces and lead social and community impact across the world. These drives will include UNESCO’s global education coalition and KPMG’s 10×30 strategy. This will empower more than ten million destitute youth economically by 2030. The global education coalition has been launched to help the student population affected by school closures because of Covid-19. It will provide the highest quality distance learning practices for those most affected. Building on KPMG’s Circularity Tracker, the relationship will also encompass their clients’ environmental, social, and governance (ESG) initiatives.
Bill Thomas, Global Chairman and CEO, KPMG international stated,
Our renewed and strengthened relationship with Microsoft is an exciting moment for our people and our clients It will help harness the power of our multidisciplinary model by ensuring that our people always have the right expertise, skills, and tools to overcome challenges and provide the very best to clients.
He further added,
KPMG is embracing the future, and we believe that AI is key to unlocking sustainable growth in a way that will build a better future for our people, our clients and society.
Read More: Microsoft Store Ads Expand to Bing Search Results, Empowering Global Advertisers
The AI Search War: Microsoft & Google Compete for Search Engine Leadership
The swift ascent of ChatGPT, developed by OpenAI and supported by Microsoft, has caused a sensation worldwide with its capability to deliver rapid results. In fact, within just two months of its release, the app has garnered 100 million users, making it one of the quickest-growing applications globally.
Microsoft announced the launch of its latest AI product, a revised version of Bing-powered by a custom-made OpenAI language model that is designed specifically for search and is more powerful than ChatGPT. The tech company describes tools as an AI copilot for the web. The company will also be upgrading its Edge browser, bringing new features to the table.
The announcement from Microsoft arrives around the same time as Google’s announcement of Bard, its answer to ChatGPT. As ChatGPT posed a challenge to Google, the company responded with Bard. Microsoft has now entered the field with a cutting-edge search engine that utilizes artificial intelligence.
Interesting Read: Google’s BARD vs ChatGPT: Which AI Will Rule the Search Realm?
However, during its live demo, Google’s AI algorithm, Bard, made grotesque errors, resulting in a loss of $100 billion in market capitalization for its parent company. What precisely occurred to cause such significant damage to Google? Industry specialists have pointed to a mistake in the response given by the chatbot in Bard’s promotional material. This error happened in response to the query, “What new discoveries from the James Webb Space Telescope (JWST) can I tell my nine-year-old about?”
Bard’s response in the online demo includes an answer that states the telescope “took the very first pictures of a planet outside of our own solar system.”
The error was picked up by many astronomers including Grant Tremblay, an astrophysicist at the US Center for Astrophysics, who tweeted:
Not to be a ~well, actually~ jerk, and I'm sure Bard will be impressive, but for the record: JWST did not take "the very first image of a planet outside our solar system".
the first image was instead done by Chauvin et al. (2004) with the VLT/NACO using adaptive optics. https://t.co/bSBb5TOeUW pic.twitter.com/KnrZ1SSz7h
— Grant Tremblay (@astrogrant) February 7, 2023
The incident highlights the fierce competition between Google and Microsoft, as Bard was developed to rival Microsoft-backed ChatGPT. In less than a week, we witnessed the two big tech giants engage in all sorts of acrobatics to secure their positions and control the market as they compete to lead the next wave of AI-enhanced computing.
Who will win the AI-powered search/chat war?
Despite the fact that the market is still bullish on Google, experts believe they are still a few steps behind Microsoft, which has recently caught up to ChatGPT’s advances. Today, Microsoft stands ahead on the AI front. People are curious about the potential impact of large language models (LLMs) on search. Last week, Microsoft caused a sensation by integrating OpenAI’s technology into Bing search.
“First of all I have the greatest of admirations for Google and what they’ve done. They’re unbelievable with great talent. I have a lot of respect for Sundar Pichai and his team.I just want us to innovate. Today was the day when we brought some more competition to search. We’ve been at it, believe me, I’ve been at it for twenty years and I’ve been waiting for it.
But at the end of the day, they are the 800 pound gorilla on this which is what they are and I hope that with our innovation they will definitely want to come out and show that they can dance and I want people to know that we made them dance and I think that will be a great day.”
– Satya Nadella
Google’s recent actions certainly make it look like they are dancing. Despite their superior AI models and expertise, they have not effectively commercialized this technology due to a lack of a culture that supports innovation. However, the pressure from Microsoft and OpenAI is quickly transforming this situation.
The intense competition between the leading tech companies has been captivating to observe, with each company making impressive announcements in quick succession. Behind the scenes, there is a fierce battle being waged in the boardrooms of these tech giants. The heightened interest in the latest AI-powered version of Bing has resulted in high demand for the product, causing a waitlist to form for those eager to try it out.
Race to ace the AI-powered search industry
Google holds a dominant position in the global search market with a market share of over 93%, while Bing’s share is 3% in January, 2023. According to Microsoft Chief Financial Officer, Amy Hood, search advertising represents a significant portion of the digital advertising industry, accounting for an estimated 40% or $200 billion of the $500 billion market. The majority of these revenues are generated by Alphabet, which reported a total of $163 billion in search advertising last year.
Its business model revolves around advertising and search-based revenue, with roughly 60% of its income coming from Google Search. Microsoft announced the integration of ChatGPT into Bing sent Google into a state of emergency. A significant disruption to this income stream could have disastrous effects. The emergence of ChatGPT as an AI-powered alternative to search represents a potential threat to Google’s business.
Microsoft may be counting on its chatbot-powered information search to attract new users who could then use Bing for higher-value searches. This strategy may come at the cost of lower margins, at least until expenses can be reduced. However, it would only be justified if Microsoft can effectively challenge Google and gain a significant market share.
“for every 1 point of share gain in the search advertising market, it’s a $2 billion revenue opportunity for our advertising business.”
-Microsoft
Challenges for Google: Balancing Cost and Market Dominance
The shift to AI-based large-language models could also increase Google’s costs, in addition to the threat to its market share. A research note from Morgan Stanley analyst Brian Nowak, quoted by Barron’s, highlights the potential for increased costs for Google due to the shift towards AI-powered search queries. The note indicates that a 10% shift in queries to AI will result in a $1.2 billion increase in Google’s operating costs. If the shift were to reach 50%, expenses would grow by $6 billion and trim pretax profits by 6%. Nowak’s perspective is that AI-powered search queries will cost Alphabet roughly five times more than the current method.
The partnership between Microsoft and OpenAI presents a double challenge for Alphabet investors, as it could result in a loss of market share and increased costs. This comes at a time when Alphabet is already facing regulatory scrutiny over allegations of monopolistic practices and misinformation on its platforms. The Microsoft-OpenAI deal has the potential to add additional stress to the already challenging situation for Alphabet and its investors.
The current technology and business model that has produced consistent profits for 20 years may be challenging to let go of. However, CEO Sundar Pichai is determined to resolve this “innovator’s dilemma” and find the best solution. On the other hand, Microsoft CEO Satya Nadella is hoping that Bing will gain popularity as a search term before Pichai finds a solution.
Wrapping up
In light of the recent “Bard AI fiasco,” Alphabet CEO Sundar Pichai must swiftly resolve the “innovator’s dilemma” and find a suitable solution. Meanwhile, Microsoft CEO Satya Nadella has high hopes for Bing to establish itself as a popular search term before Pichai’s resolution. The pressure is on both tech leaders as they navigate the constantly evolving technology landscape and competition in the search engine market.
Microsoft is ready to reclaim its position at the forefront. Google, be prepared, as Microsoft takes the lead in this first round. Witnessing this AI search engine battle is going to be a lot of fun!
Interesting Read: Tête-à-Tête With ChatGPT- The Power Of AI
AVOD Surprise: Netflix Advertising Powered By Microsoft
Netflix is building its advertising business and the streaming giant has signed Microsoft as its first ad tech partner. In April, Netflix surprised the world with the news that it plans to launch an ad-supported tier. Industry watchers were expecting that Netflix was close to picking an advertising platform to help it build the ad-supported tier of service.
Why Microsoft of all the choices?
Microsoft Advertising is the dark horse contender for the Netflix account and a positive surprise for the industry. Notably, other potential adtech partners such as FreeWheel or Google have interests competitive to Netflix’s. They both sit inside companies that have their own content plays on streaming TV. This likely knocked them out of the race.
Prior to its acquisition of Xandr, Microsoft was not even considered a serious programmatic competitor in the industry. As an early, dominant player in programmatic display advertising, Xandr (formerly AppNexus) started focusing on the TV/video ad space after being acquired by AT&T in 2018.
Xandr is well suited to build Netflix’s ad operation from scratch, a task that won’t be easy but isn’t new for the company. The ability to provide privacy, combined with an established ad tech stack and a strong ability to iterate quickly, helped Xandr push over the finish line. Greg Peters COO and CPO said,
“Microsoft has the proven ability to support all our advertising needs as we work together to build a new ad-supported offering. More importantly, Microsoft offered the flexibility to innovate over time on both the technology and sales side, as well as strong privacy protections for our members. “
Interesting Read: Marriott International : A Hotel or An Ad Tech Company?
What does this mean for advertisers?
Marketers looking to Microsoft for their advertising needs will have access to the Netflix audience and premium connected TV inventory. The Microsoft platform will be the exclusive provider of all Netflix ads.
In the future, a Netflix subscription with ads at a lower price may entice value-seeking customers. With Netflix entering the ad-supported streaming world (AVOD), advertisers will have access to a wide range of premium inventory.
As AVOD continues to expand, this partnership not only supports the momentum but also creates more competition in the field. The recent Disney partnership with the Trade Desk also gives advertisers access to more premium AVOD inventory.
Interesting Read: Connected TV Explained: The Essential Glossary Of CTV
Why do we care?
With Netflix getting into the AVOD market, the equation changes entirely for TV watchers who compare steep cable subscription fees with rising streaming costs.
CTV advertising is known for its chaos, consumer dissatisfaction, and controversy. Netflix has never faced any of these issues. The biggest challenge will be to maintain the balance between efficient monetization and retaining subscribers who are used to ad-free content.
The question of the hour: Does this partnership really push the envelope on ad innovation?
Certainly, Microsoft brings gaming to the table, where there are opportunities and innovation, but there is still much room for development. If It could be magic if these new partners are able to translate this kind of next-gen thinking into the more traditional streaming TV ad ecosystem.
Interesting Read: Is Microsoft Reinventing Its Ad Business With Massive Acquisitions?
Is Microsoft Reinventing Its Ad Business With Massive Acquisitions?
Microsoft has a sizeable ad business. In the latest earnings call, the company reported the advertising revenues “surpassed $10 billion, ex-TAC [traffic acquisition costs]”. The company believes its vertical will grow in the mid-to-high teens.
“Across Bing and Edge, we are creating differentiated, high value experiences for consumers and advertisers in key verticals, including shopping. More broadly, we are expanding our opportunity in advertising.”
The company has taken center stage with its recent notable acquisitions -gaming giant Activision Blizzard and a leading adtech company Xandr. Recently, Nadella said,
“And with our acquisition of Xandr, we will bring to market new advertising solutions that combine our deep audience understanding and customer base with Xandr’s large-scale data-driven platforms.”
Does all this mean the stirring of a sleeping giant in the ad industry? Microsoft has access to an extremely powerful first-party data operation based on subscriptions. Even though Bing, Edge, and MSN may seem passe today. However, Microsoft still has a huge audience which includes Xbox, Game Pass, LinkedIn, and Outlook.
Interesting Read: 5 Ad Industry Trends That Are Likely To Unveil in 2022!
All The Ingredients Of The Ad Business
Despite the size and stellar performance of its ad business, Microsoft has not really been seen as a true rival for Google and Facebook in the advertising sphere. It’s been some time since Amazon officially dispensed Microsoft from the “Big 3” of digital media, joining Google and Facebook among the world’s largest digital advertising companies.
Still, analysts do not seem to have discounted Microsoft’s ad dominance. As GroupM Business Intelligence Global President outlined in a report, “We estimate advertising to be a $15 billion business in 2021.” These figures are before Xandr’s acquisition; making Microsoft the fourth largest player outside of China in ad sales. Weiser attributes this to a surge in overall ad demand, as well as LinkedIn‘s success in recruiting advertising following the “Great Resignation.”
Ad offerings from Microsoft currently include ads on its search engine Bing, placements on its O&O networks, as well as its Microsoft Audience Network, a programmatic network that places native ad units on properties like CBS Sports and Fox Business. This is in addition to its retail media offering PromoteIQ.
There is still plenty of opportunities for Microsoft to enhance its ad revenue even beyond what it is currently doing. For its advertising business, the company has “bold ambitions”, especially around data, audiences, and international expansion.
Interesting Read: A Panoramic Perspective Of Amazon’s Advertising Business!
Xandr- A crucial ingredient
The acquisition of Xandr (formerly App Nexus) will not only solidify Microsoft’s position as a prominent ad tech player but also develop capabilities in the demand-side and supply-side of advertising.
On the supply side, it helps them monetize their data and ID better because in the past, they didn’t sell that outside of their own businesses but now they can do so with Xandr. On the demand side, it helps them secure more budget.
Xandr and Microsoft had a close relationship before their merger, which may have led to a much better outcome. Recent acquisitions have the potential to awaken the sleeping giant. In contrast to before, Microsoft has more content, data, and now technology. All walled gardens possess this very powerful characteristic. So, is there a new walled garden in making? Experts interpret this acquisition as Microsoft’s bid to build a walled garden with a buying platform, unique inventory, persistent ID layer, and proprietary data.
Activision Blizzard- an advantage to ad-funded gaming
Xandr’s purchase is a drop in the ocean compared to the Activision Blizzard deal. This acquisition provides a shortcut for Microsoft to ramp up its content offerings. It will also help to build out their audience, a key area for Microsoft’s ad business.
Activision’s great content could also boost subscription numbers for Game Pass, assuming the regulatory approval. Both are hoped to drive future growth for Microsoft’s gaming division as revenue models and platforms shift in the industry. Activision Blizzard’s developer resources will expand Microsoft’s ability to make games, and as a result, the company’s metaverse plans will be bolstered.
Interesting Read: 6 Data Privacy Trends To Look Out For In 2022!
Cross-Platform Monetization
Microsoft could increase sales and monetization by connecting its various tech properties, such as CTV and in-game ads. ( Note-Video game consoles support streaming apps for the CTV category.)
In addition, the search business presents them with a great opportunity to grow their advertising revenue. As Bing is the second-ranked search engine in the U.S., Xandr can integrate its search intent data.
Xandr can help Microsoft build out its in-house ad tech stack. Ads across their content portfolio could be served through Xandr. The company could start an open demand-side platform and plug Xandr in all the in-game inventories. Xandr could be the link between all their inventories, even on consoles. Publishers can upload some creativity to appear in games like Candy Crush, Call of Duty, and the Xbox storefront. However, few experts are not convinced of any brand link between the Xandr acquisition and the Activision Blizzard acquisition as the space of adtech is quite further down the chain.
Microsoft’s own mobile apps, native content, and CTV assets can be monetized through Xander’s DSP, SSP, and Xandr Curate’s audience data-fueled curation capabilities. These capabilities serve as a powerful foundation for the omnichannel advertising ecosystem.
Interesting Read: All You Need To Know About Connected TV Advertising!
Wrapping Up
As a credible alternative to the current market leaders, Microsoft’s brand could undoubtedly be instrumental in establishing the advertising offering as a viable proposition. However, Microsoft will require to overcome two points at issue- lack of non-search DNA and mobile app monetization. The company has predominantly focused on search. Also, it is a learning curve for Xandr too, as mobile app monetization and native is not its expertise.
History shows that mere having adtech sprinkled with data or inventories on top won’t suffice to compete with the likes of Google or Facebook. Much more is needed to succeed realistically and very few companies have it. And Microsoft is absolutely one of them. Challenges lie ahead but are achievable. A matter of time for sleeping ad giant to wake up!
Interesting Read: The Ultimate A-Z Glossary Of Digital Advertising!
AT&T Agrees to Microsoft Acquisition of Ad Marketplace Xandr
Microsoft has agreed to acquire AT&T’s worldwide programmatic advertising platform, Xandr. The arrangement expands on a decade of collaboration between Xandr and Microsoft, including its predecessor firms, to provide global digital media solutions for marketers.
Microsoft and Xandr can redefine the digital ad industry as the internet deals cookie apocalyptic world. Mikhail Parakhin, President of Web Experiences at Microsoft said-
“With Xandr’s talent and technology, Microsoft can accelerate the delivery of its digital advertising and retail media solutions, shaping tomorrow’s digital ad marketplace into one that respects consumer privacy preferences, understands publishers’ relationships with consumers and helps advertisers meet their goals”.
Interesting Read: Xandr Launches Monetize Tv To Provide “Granular Targeting” On TV
Microsoft and Xandr: A Golden Acquisition?
This acquisition brings an end to AppNexus, the once-dominant programmatic company, which was renamed Xandr but never found a place within AT&T.
By merging Microsoft’s audience intelligence, technology, and global advertising client base with Xandr’s scalable, data-driven platform, Xandr’s technology will assist expedite the delivery of digital advertising and retail media solutions for the open web.
Microsoft also has a lot of ad tech and media features where AppNexus may help. Examples include the Bing Search engine, Edge Browser, and the Windows Apps store; and according to inside sources, these are already a part of the AppNexus account.
Xandr’s EVP and GM Mike Welch commented-
“Microsoft’s shared vision of empowering a free and open web and championing an open industry alternative via a global advertising marketplace makes it a great fit for Xandr.”
Welch also added that the company is looking forward to employing its unique technology to assist Microsoft to advance its “digital advertising and retail media capabilities.”
Also Read: A Look Ahead: Convergence Of Linear TV And Digital TV Advertising