Microsoft's Xandr acquisition is all about connecting data with ad inventory
After the acquisition of Xandr, the potential reach of Microsoft will increase significantly, as Xandr is connected with hundreds of publishers globally.
After the acquisition of Xandr, the potential reach of Microsoft will increase significantly, as Xandr is connected with hundreds of publishers globally and in multiple ad formats, via Xandr SSP, and via other exchanges/SSPs like Google, connected to Xandr DSP.
Until today, Microsoft was already active in programmatic advertising via search, display, native, email, and B2B.
The question is how Microsoft will integrate all the first party data that already has. Microsoft owns socio-demographic and B2B data via LinkedIn. Intent data via Microsoft Bing and Outlook. Affinity data via MSN and Outlook. Tech data via Edge and Windows. This enables Microsoft to build audiences, do attribution, and match data like phone numbers or email addresses in Xandr.
On today's announcement, Microsoft said it will ccombine "Microsoft’s audience understanding, technology and global advertising customer base with Xandr’s large-scale, data-driven platforms for advertising."
Here what Microsoft Advertising has today:
Search
Microsoft Bing is the primary source of ad revenue for Microsoft. Microsoft global search advertising revenue is over 7 billion USD per year since 2018, and the growth year over year never stopped.
Bing’s market share is around 5%. Microsoft owns the operative system (OS) Windows and the browser Edge, and that contributes to direct native integrations with search, news, and email.
Display and Video
Microsoft is on the news publishing business with MSN. Microsoft curates content from publishers in MSN, and sells display and video advertising programmatically on this website, globally.
Native Ads & Email
On the display advertising, Microsoft sells native ads and display ads in outlook.com, a free email service.
B2B
LinkedIn is the second source of ad revenue for Microsoft. Microsoft is doing over 1 billion USD per quarter in ad revenue with LinkedIn, with B2B advertisers.
Expanded network
On native ads, Microsoft owns Microsoft Audience Network, where it is expanding the reach of Bing data and LinkedIn data in other websites and apps.