How Will Microsoft's Management Shifts Impact Advertisers?

With the departure of Microsoft CEO Steve Ballmer and the ascension of 22 yearcompany veteran Satya Nadella advertisers and agencies can be hopeful that Microsoft will focus more on building expanded services and support for marketers Scroll down for details on current perceptions of Microsoft Advertising in the ad community Few in the ad community recall that before Nadella led the cloud and enterprise group and prior to that the server tools and onlineservices divisions he was senior VP of the search portal and advertisingplatform group VP of development for the businesssolutions group and general manager of consumer and commerce He also worked for a short time at PampampG in brand management and has an MBA from the University of Chicago While he may be an engineer and tech geek he39s wellschooled in marketing and the value and importance of advertising Although ad revenues represent only a fraction reported to be less than 2 of Microsoft revenues and Wall Street analysts cover the company from the tech rather than the advertising POV Nadella will certainly focus more attention on the ad community than Ballmer ever didMicrosoft has never had a stellar reputation among its advertising partners but it has been at the forefront of the industry through its early acquisitions of Razorfish which was later sold to Publicis It had a short burst of positive energy during the ninemonth tenure of Carolyn Everson who departed to join Sheryl Sandberg at Facebook and has been a driving force behind the success and growing market cap of the world39s largest social network Since that time Microsoft39s presence in the ad community has stagnated settling in under the daytoday guidance of Keith Lorizio who has also left the companyNadella has many priorities before he focuses on ad revenues As reported in the Huffington Post quotBing still has relatively little share in search Windows Phone 8 is an alsoran while Android keeps gaining share Microsoft39s email system which is now called Outlookcom but previously was called Hotmail has no chance of catching Gmailquot However Nadella is likely to assure that the company has strong and visible leadership in the ad community develops a strategic plan for achieving that leadership and commits the resources for competing on a more equal footing with Google AOL Yahoo Amazon Facebook and the many emerging companies in display rich media programmatic sales branded content mobile search video and social I expect that within 24months Microsoft will engage more actively in the MampampA marketplace to build out its advertising business Nadella39s decision on who will ultimately lead the advertising revenue side of the business will be key to forecasting the company39s strategic directionsCurrently heading the North American ad sales group on an interim basis is Barry Dougan a 15year Microsoft advertising sales veteran who since 2010 has been general manager GM US Specialists Sales Issues facing Nadella among many are whether to bring in a wellknown ad industry fixture and whether to integrate search display rich media video Xbox programmatic mobile social and other adcentric businesses under one or multiple PampampL centers Nadella may turn for strategic support to former CBS Studios chief Nancy Tellem who is president of Microsoft Entertainment ampamp Digital Media The spotlight will be on her and her team as Xbox launches its first slate of original series in the next 6090 daysAs a software company with a massive global customer base and multiple consumer touch points across the spectrum of digital technology Microsoft has historically struggled to make advertising revenue a priority Lorizio had little success in building a welldefined brand for Microsoft in the ad community and less success trying to navigate the company39s tumultuous internal politics However he did establish a team of competent ad sales professionals who managed to meet revenue goals with little leadership or support In the recent MyersBizNet Annual Survey of Advertising Executives on 42 Digital Native Media Companies Microsoft ranked 20th overall in value to advertisers and sales organization performance scroll down for details The sales organization appears to have focused attention on large traditional media agencies where they39ve maintained perceptions of value and innovation among longterm partners A picture of a schizophrenic organization emerges however as perceptions of the sales team and management has declined among these traditional partners Conversely younger industry execs at both full service and digital agencies have more positive perceptions of the sales team but rate Microsoft less positively for value and innovation2013 MyersBizNet Survey of Advertising Executives on Digital Native Media CompaniesMethodology and details available to members at wwwmyersbiznetcomamp160amp160amp160Microsoft Advertising39s Rank Among 42 Digital Native Media Companiesamp160amp160amp160Performance CategoryRank Among 42 Companiesamp160Quality Sales Team and Customer ServicesTotal Respondents19amp160Digital Agencies14amp160Full Service Media Agencies24Value for the InvestmentTotal Respondents20amp160Digital Agencies23amp160Full Service Media Agencies5Innovation and Market LeadershipTotal Respondents21amp160Digital Agencies24amp160Full Service Media Agencies4Premium Content ampamp Audience QualityTotal Respondents14amp160Digital Agencies8amp160Full Service Media Agencies11Effective PresentationsTotal Respondents28amp160Digital Agencies16amp160Full Service Media Agencies5Average 5 Categories Overall PerformanceTotal Respondents20amp160Digital Agencies17amp160Full Service Media Agencies11Source MyersBizNet Annual Survey of Advertising Executives September 2013amp160amp160amp160amp160If you are receiving this report you are a registered member to MyersBizNet or are receiving it as part of a registered corporate membership As a member Jack responds personally to your emails requests and comments He is available to speak at your company events In addition to Jack Myers Media Business Reports your membership underwrites MediaBizBloggerscom Women in Media Mentoring Initiative Jack Myers Wall St Report Jack Myers Video Media Report plus our exclusive industry economic forecasts trend forecasts and corporate performance research Redistribution in any form except among approved individuals within your company is prohibited As a member you have full access to all archives and reports at wwwjackmyerscom If you require your ID and password contact maryannjackmyerscom

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How Will Microsoft's Management Shifts Impact Advertisers?

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