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Microsoft (MSFT) has aQuantive, but will it matter?

The wait is over -- Microsoft Corp. (NASDAQ: MSFT) has finally completed the purchase of advertising company aQuantive as of this week. Now that the $6 billion purchase is over and done, it's time for the results to be under the microscope: How long will it take Microsoft to use this new muscle against powerful foe Google (NASDAQ: GOOG)? Or let's rephrase that -- will it even matter?

As of Monday, aQuantive was officially a "Microsoft wholly-owned subsidiary" and the board disbanded. Oddly, this deal has received a fair amount of attention, but not really enough since it is the largest-ever acquisition by the world's largest software company. Is Redmond placing a bet on its future here outside of operating systems and office productivity software? That seems fairly clear.

Will internet advertising outside of Google's successful and unobtrusive model work wonders like all these recent advertising acquisitions make it appear? The further infiltration of advertising into our online lives will only spur many forms to obliterate it. Firefox, a worthy web browser alternative to Microsoft's Internet Explorer, already has tools like AdBlock Plus and FlashBlock that can almost completely eliminate online advertising. Will Google's DoubleClick purchase and Microsoft's aQuantive buy be busts due to consumer backlash against so much advertising on the internet? We'll check back in 2010.

The YouTubing of retail

While e-commerce players like Amazon.com (NASDAQ: AMZN) are having a resurgence, there are still interesting growth paths. For example, how can it leverage the huge popularity of online video?

I had a chance to interview Thomas Harpointner, who is the CEO of AIS Media. His company develops e-commerce and email marketing applications.

How are e-tailers using online video and emails for target marketing?


At least 18% of major online retailers tracked via RetailEmail.Blogspot have incorporated video into at least one email over the past six months or so. In addition, 86% of online retailers use some form of video during the shopping experience, up from 52% last year.

What are they doing? Retailers are using video to run ads. This is much cheaper than running ads on network television.

Videos can be effective for demonstrations and reviews. They serve as excellent traffic generation tools. Tracking which videos visitors click on can also help marketers determine which products are most popular.

Also, links to videos in an email marketing materials receive a higher click-through rate than regular hyperlinks

What are some of the best practices?

Don't force things. Provide viewers a screenshot of the video along with a brief description of its contents. The video should only play when it's clicked. Automatically playing a video each time a web page loads can reduce web site performance and annoy visitors.

Video must be user-friendly as well. Avoid requiring users to download a unique video player. Instead, use a standard player such as Flash or Microsoft Corp.'s (NASDAQ: MSFT) Windows Media.

Furthermore, the video must be relevant to the email. Don't just add video to grab attention. Make sure it corresponds with and enhances your message.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

HarperCollins latest chapter: Going dot-com

HarperCollins is a legendary book publisher with authors like Mark Twain, H. G. Wells, Agatha Christie, J. R. R. Tolkien, Charles Dickens, and even John F. Kennedy. The company was founded in 1817 by the brothers James and John Harper.

Since the late 1980s, the company has been a part of News Corp. (NYSE:NWS), and the division pumps out about $1 billion in revenues. However, the fact remains: the traditional book publishing business is ailing.

Well, this week, HarperCollins announced an investment in LibreDigital, which is a division of NewsStand (the amount was not disclosed). Basically, this will allow HarperCollins to digitize its content. What's more, the company will market these services to other publishers and individuals. In the Age of Blogging, this is definitely a smart move.

The services include: typesetting, digital warehousing, Net distribution, and online marketing. In the press release, HarperCollins indicated that " all publishers must develop this capability." That is certainly true.

Actually, HarperCollins has been fairly aggressive with digital technologies. For example, it has digitized more than 10,000 books over the years.

Tom Taulli is the author of various books, including the Complete M&A Handbook and the EDGAR-Online Guide to Decoding Financial Statements.

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Last updated: December 04, 2008: 06:46 PM

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