After decades of crappy ads, Microsoft (NASDAQ:MSFT) seems to finally have struck gold with its new ad campaign playing upon the price difference between the PC and similar Apple (NASDAQ:AAPL) products. In an interview in Brandweek, the general manager of brand marketing at Microsoft, David Webster, states that recent Microsoft marketing has enjoyed a recent 10% lift in preference for Windows PCs over Apple computers.

The clever ads follow 'real consumers' who are given $1,000 to buy a laptop, with the understanding that they can pocket any money left over. Since the Mac starts at $999, the results were preordained. More troubling for Apple, as pointed out by Daniel Lyons in Newsweek, is that one ad in particular undercuts the hip image of the Mac user. Lauren is an appealing, very cool young lady who opines, "I'm just not cool enough to be a Mac person." This message resonates particularly well in contrast to Apple's long-running "I'm a PC" ad campaign.

Microsoft (NASDAQ: MSFT) continues to sit on a cash pile worth over $30 billion. What is it going to do with all that money? Continue to develop underwhelming products like Windows Vista? Probably. Take on Google (NASDAQ: GOOG) in the internet advertising revenue arena? Of course. Roll out a consumer marketing blitz to make sure the word Microsoft continues to be a relevant household name? Surely.

Early in 2008, the world's largest software company will begin spending $200 million to $300 million to advertise its wares: the Xbox 360, the newer Zune digital media players, Windows Vista PCs and Windows Mobile.

Microsoft (NASDAQ: MSFT) says it has launched mobile advertising on its MSN Mobile portal optimized for viewing on smartphone and cellphone screens. It's about time -- mobile advertising, as many industry pundits has said for years, is the next frontier of online advertising. Competitor Google (NASDAQ: GOOG) is right there as well, and company CEO Eric Schmidt never misses a chance to say how important mobile web access is to global internet users.

MSN Mobile will now feature miniature banner ads suited specifically for each web browser type and screen size resolution based on the type of device each mobile customer uses to visit MSN Mobile. Microsoft services like Hotmail, MSN Messenger, Live Search and others are all available on the portal. The question is whether customers will use them in increasing fashion. When it comes to mobile web access, Microsoft definitely does not enjoy the monopoly it holds with its desktop software and operating system presence.

But there is more -- MSN Mobile allows movie ticket purchasing, and the downloading of background images and ringtones for any customer who visits. With ad backers Bank of America, Paramount Pictures, and Jaguar, MSN Mobile has some decent partners lined up to begin with. That, of course, does not guarantee success. Google's mobile ad efforts are proceeding along at lightning speed too.

Reports today suggest Microsoft (NASDAQ: MSFT) is poised to launch the next salvo in the scramble for vertical integration of the digital marketing industry by purchasing 24/7 Real Media Inc. (NASDAQ: TFSM). 24/7, whose ticker symbol is coincidently the mirror image of Microsoft's, provides e-marketing strategies, analytics, search marketing and campaign management. Its client list includes British Airways, Forbes.com, United, and Playboy.

If it buys 24/7, Microsoft would join Google and Yahoo in positioning themselves to provide advertisers with a one-stop shop for content, ad opportunities appearing on that content, campaign design, management and measurement. For example, Google offers content on, among others, Search and YouTube, while its AdWords and recently acquired DoubleClick manage the sale and placement of ads on its content.

According to the New York Post, the current asking price for 24/7 is $1 billion, no doubt boosted by Google's recent purchase of DoubleClick. Last week, the New York Post reported that advertising giant WPP Group (NASDAQ:WPPGY) was also considering a purchase of the company.

These are fat times for companies in the internet advertising delivery stream. Look for more to cash in while the market exuberance is high.