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  Microsoft Searches for a Way to Catch Up
Time: 06:13 EST/11:13 GMT | News Source: Business 2.0 | Posted By: Chris Hedlund

In February, Microsoft released a revamped version of MSN Search, its first search engine based on its own technology. To get the word out, it did something you'd expect from a powerful market leader with very deep pockets: It dipped into that $34 billion cash hoard. Spending a reported $150 million, it blanketed network TV with fresh MSN advertising spots during high-profile broadcasts such as the Academy Awards, the Grammys, and the Super Bowl. The company also bought online ads at CNET, CNN.com, Weather.com, WSJ.com, and dozens of other heavily trafficked websites. Microsoft says the campaign has reached as many as 90 percent of U.S. consumers and several hundred million other people around the world. "It's one of the most significant marketing campaigns we've ever done," boasts Justin Osmer, MSN's product manager. That marketing onslaught moved the needle. According to Internet measurement firm Nielsen/NetRatings, MSN's share of the booming search-engine market jumped in February from 12.8 percent to 14.2 percent. That gain came at the expense of market leader Google, which saw its share fall from 47.1 percent to 45.9 percent. (Yahoo held steady with a little more than 20 percent of the market.) MSN says its internal numbers, for both market share and total users, also show strong gains. And Brand Keys, a New York-based consultancy specializing in consumer loyalty, says that while Google remains the category leader, the company's loyalty measures have declined 4 percent since last year.

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