Microsoft CEO Steve Ballmer played online-services pitch gentleman throughout his opening keynote at Microsoft;s annual Monetary Analyst Meeting (FAM), explaining why Microsoft believes it must continue on to make investments seriously in search and marketing to stay aggressive within the coming several years.Ballmer was pinch-hitting for Kevin Johnson, the Microsoft President in cost of the company;s previously unified Platforms & Providers unit. Yesterday,
Microsoft Office 2010 Product Key, Microsoft announced it was splitting platforms (Windows and Windows Live) from On the net Companies, and Johnson had decided to leave the provider, allegedly because he was not offered a CEO-level role. Johnson is not speaking at FAM today.Ballmer told the analysts and press in attendance at FAM on July 24 that the on the internet search and advertising world is now a “two-horse race” between Microsoft and Google. Ballmer said Yahoo was no longer a player, emphasizing that Microsoft has “nothing under discussion right now” together with the No. 2 lookup vendor which Microsoft has been attempting to acquire for the past many months.Ballmer reiterated that Microsoft considered buying Yahoo and/or Yahoo;s lookup internet business as “a tactic, not a strategy.” He told attendees Micorsoft wanted Yahoo primarily to build its advertising scale.“People say ‘you have to buy Yahoo,
Windows 7 sale,;” Ballmer said. “No, we don;t.”Ballmer said he;d never say never, in terms of Microsoft talking to Yahoo at some point inside the future. But now that it isn;t ponying up $40 billion to buy Yahoo, Microsoft has more flexibility in how it will “up the ante” in its competition with Google in search and advertising, Ballmer said.Ballmer spent considerable time justifying why Microsoft is willing to spend and lose billions to grow its search and marketing organization. He told FAM attendees that Microsoft considers lookup “a killer app” for the new world in which more and more content and providers go digital. Lookup also is becoming one of the best ways for distributing and promoting new companies, Ballmer said.Microsoft;s On line Systems Company loss was about 5 percent of operating income, Ballmer said. But Microsoft believes that over time, that investment will give Microsoft a share with the trillion dollars of media, communications and marketing spending that will be up for grabs in the coming years — perhaps as much as “40,
Microsoft Office Pro 2007, 50, 60 percent” of Microsoft;s current economic value, he claimed.Microsoft plans to up the ante, sharpen the focus and reinvent lookup, Ballmer said. The organization plans to build from its MSN,
Microsoft Office 2010 Professional Plus, Windows Live and ad strength,
Office 2007 Activation, going forward, as well as to find ways to make ads served through its platforms more relevant. He told FAM attendees that Microsoft is currently the tenth largest seller of advertising in the U.S. today.There;s a Catch-22 when it comes to search and advertising, Ballmer acknowledged. The more advertising a vendor gets, the more relevant the ads served to consumers can be. But a vendor also needs more queries to be made to serve the ads within the first place. Ballmer insisted that Microsoft can get its ad relevance up even without Yahoo with programs like Windows Live Cashback, more and deeper vertical search work and new deals, like the one it announced today to add Live-Search-powered Web search and search ads on Facebook this fall.