Microsoft to move millions of marketing dollars to digital

A top Microsoft executive, speaking at the recent AAAA media conference, indicates that the majority of the company’s ad spending will shift to digital in the near future.

by Helen Leggatt

New media agencies across the U.S. must be rubbing their hands in glee. In a speech at the recent AAAA media conference Mich Matthews, senior vice president of Microsoft’s central marketing group, announced that, "We're actually pretty confident that by 2010, the majority of our media mix will shift to digital.”

According to Advertising Age Microsoft spent $945 million in marketing dollars in 2005 alone. That is a huge amount of money to be pulled from traditional TV and print channels.

M. Mathews has heralded in a new marketing epoch they are calling “The Era of Customer Participation” where broadcasting to a passive audience is being substituted for customer interaction.

TV and print channels aren’t, however, being completely ruled out and Matthews insists that they will be retained for tactical roles. Microsoft has recently signed up to eBay’s TV ad auction system showing their continued interest in traditional broadcasting.