Microsoft Shockwave?

A story in Media Daily (free subscription required) was headlined: “Shock Waves: Microsoft To Move Bulk Of 1 Billion In U.S. Ad Spending To Digital.” Mich Mathews, a Microsoft executive, delivered the message to attendees at the AAAA Media Conference.

I don’t know why this would be “shocking” news. Microsoft, after all, is one of the larger digital companies in the country (currently 48th on the Fortune 500 list), so directing the majority of your marketing money online seems like a reasonable move.

There are a lot of media choices now, and every company and industry has to decide the most effective media mix to reach customers and prospects. Sometimes it will be predominantly online like Microsoft; sometimes it will be utilizing the traditional tools that have served members of the AAAA for years. For most, it will be a mix of both. Microsoft’s move may be shocking to the traditional media companies that are losing the revenue, but it certainly shouldn’t surprise any ad exec attending the AAAA conference who hasn’t been in a cave the last few years.

According to the Media Daily News, Mathews told the audience that in the “Era of Customer Participation,” the company is simply following its consumers, who are increasingly migrating to the Web and an array of nontraditional outlets for information and entertainment. Plus, Microsoft is attracted to the potentially helpful accountability data that digital marketing provides.

Mathews also told the group the days of pushing ads at consumers are over, and instead we need to find a way to involve and engage the consumers in the brand.

Posted in: Business, Media Strategy, Online Marketing, Targeted Marketing Programs