The news: Microsoft’s ad business is enjoying newfound attention after last week’s announcement that Netflix chose the tech giant as its partner for its upcoming ad-supported subscription tier.
Let’s try that again: Microsoft has a history with digital advertising that stems back to its 2007 acquisition of digital ad firm aQuantive Inc., but its early attempts at ad dominance paled in comparison to its competitors.
Filling the gaps: With both an established history in tech and advertising acquisitions under its belt, Microsoft has the foundations to build a strong ad business. What it lacked until now was an in-demand, scalable inventory of content to apply it to.
But games take much longer in the oven than most TV shows do, and Game Pass hasn’t seen a major, “Triple-A” release in quite some time. Netflix, meanwhile, remains the most widely used subscription-based streaming service and is planning to launch its ad platform by the end of the year.
The big takeaway: Committed to fighting for a larger share of the ever-growing digital advertising market, Microsoft with its Netflix partnership gains a testing ground and broad base of content to apply its technology to.