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Technology Stocks : Windows Phone
MSFT 516.91-0.2%Nov 3 3:59 PM EST
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To: pyslent who wrote (1006)9/16/2013 11:58:12 AM
From: zax1 Recommendation

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pyslent

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Microsoft does offer an in-house ad solution. The problem is that Google controls the vast majority of Internet ad inventory - Microsoft doesn't have enough to meet demand. Because ad inventory demand exceeds supply on the Windows Phone platform, it becomes an ad sellers (advertisers) market - which in the world of advertising causes the price to drop.

Its a keen advantage Google has since so much software is ad supported now. Google can turn the screws on Apple just as easily. They can drive development on their platform by paying better; its that simple.

We have to hope that Microsoft and others can create a better ad marketplaces to better complete with Google. Google runs a very sophisticated auction system that creates real value for all sides. They are able to extract very large margins as well.
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