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Microsoft Sees Revenue Increase from Online Advertising Efforts

MSFT has issued its Q1 numbers and is expressing their satisfaction with the growth of their online advertising revenue.

Advertising revenue growth was 23 percent year over year, however, and Chief Financial Officer Chris Liddell said the company is actually ahead of last year’s monetization goals for adCenter. “We are now monetizing more effectively in the U.S. on our own adCenter platform than we had under third-party Overture at this time last year,” said Liddell said during the company’s earniing’s call.

Despite Windows Live Search hardly making a dent on Google or Yahoo’s market share, it seems the company is able to capitalize on traffic from other Microsoft properties.

Traffic to Microsoft sites has increased four percent year over year, from a three-month average monthly unique audience of 113.7 million unique visitors in Q1 2006 to 117.8 million unique visitors for the period just ended, according to Nielsen//NetRatings. The metrics firm’s AdRelevance division also estimated MSN’s revenue from image-based ads increased 4 percent from Q1 2006 to Q1 2007.