Microsoft and OpenX Team Up - Affects Google in a Big Way

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It could be said that Microsoft is playing dirty using a spoiler tactic, though it's nothing that hasn't been done before. Essentially, this is the way a spoiler tactic works: one company takes their competitor's biggest cash cow by offering a free alternative.

Just about every major company has used this tactic against Microsoft, including Linux and Google. So, technically, who could really blame Microsoft for teaming up with OpenX and basically taking Google's advertising cash cow?

Ad-serving, which Google has really excelled at in recent years, isn't really a cash cow in and of itself, but there's no denying that it's definitely a major part of it. This is perhaps why Microsoft's partnership with OpenX was so smart: it provides legitimate and major competition to Google's ever-popular AdSense.

Despite the fact that Google's AdSense program has many weaknesses, it's still the most lucrative aspect of the company. It seems as if things are moving toward the idea of publishers selling more directly, which means Google better find themselves a company similar to OpenX if they want to stay relevant and rich.

That being said, Microsoft won't be successful in their new endeavor if their ads with OpenX aren't relevant. If it appears as if Microsoft's ads are relevant and featured on the appropriate sites, Internet users will be grateful, which in turn will result in a better return on invested capital for the advertisers. Let's hope Microsoft keeps it relevant.

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