Beta program shows ads primarily on MSN network sites, could be extended to parked domain names.
Microsoft (NASDAQ: MSFT) continues to test its contextual advertising network and is inviting many current MSN Adcenter advertisers to join its beta. The program will work similarly to Google’s (NASDAQ: GOOG) Adwords and Adsense programs. Advertisers in Microsoft’s pay-per-click network will be able to advertise on relevant content sites. Advertisers can set different click prices for contextual ads and search ads.
Microsoft’s pay-per-click advertising network had hit the ground running and attracted many of the same search advertisers that use Google Adwords and Yahoo! (NASDAQ: YHOO) Search Marketing. MSN advertisers (including myself) are reporting excellent conversion rates on search ads.
The initial beta of the contextual network will show ads mainly on MSN sites. It will later launch to other sites, allowing smaller webmasters to monetize their content.
It’s reasonable that this will later extend to domain name parking. Google and Yahoo currently show their ads on parked domain name pages. If Microsoft enters this segment it will be good for all domainers. More competition means that Google, Yahoo, and now Microsoft will all start competing for placement on parked domains. This could result in higher payout percentages to domain name owners.
Read more about MSN’s contextual advertising here.