IDG News Service - Microsoft Corp. said today that it will buy ScreenTonic SA, a company that specializes in delivering location-based ads to mobile devices.
ScreenTonic, based in Paris and founded in 2001, will become part of Microsoft's Digital Advertising Solutions group, created last September to sell advertising across its devices such as the Xbox gaming system and its Web sites.
ScreenTonic's platform, called Stamp, enables delivery of text or banner links on portals, ads in SMS (Short Message Service) messages and ads in mobile Web pages that vary depending on where the reader is located.
The platform includes a manager component that can handle monitoring, billing and reporting, and a server that delivers ads according to certain criteria, according to ScreenTonic's Web site. It also has a sales component for developing and selling ad campaigns.
The technology is a new addition for Microsoft, which had not done any development in mobile advertising, said Chris Dobson, vice president of global sales for Digital Advertising Solutions.
The ScreenTonic acquisition is a long-term bet in an area that Microsoft expects to grow as download speeds pick up through wider use of 3G (third-generation) and HSDPA (High Speed Downlink Packet Access) technologies, he said.
"We sort of see a parallel world mimicking the way the online space has developed, but it's at a very early stage," Dobson said.
Then, Microsoft may be able to offer consumers free content in exchange for viewing ads, a trade-off that has worked well in the PC area, Dobson said.
Microsoft won't rebrand ScreenTonic and instead will take a hands-off approach, letting its founders, who will stay with the company, keep it on course, Dobson said. Many of ScreenTonic's clients, such as Vodafone Group PLC, are already Microsoft partners, he said.
Last year, ScreenTonic announced it had gained $7.4 million in new funding from investors 3i Group PLC and I-Source Gestion SA, while also opening a subsidiary in London.
The companies did not disclose the terms of their deal.
- Assessing ROI for Mobile Acceleration Clients This EMA® paper examines the business case for deploying mobile WAN optimization client software and builds a ROI model based on the experiences...
- The Apple-ization of the Enterprise: Understanding IT's New World Read this paper for how to tackle Apple-ization (and the related consumerization of IT and Bring Your Own Device/BYOD).
- A Practical Introduction to Enterprise Mobility Management Read the white paper to better understand the basic concepts within mobility management and to learn how you can apply EMM technology to...
- Enterprise Mobility: A Checklist for Secure Containerization The advantages and disadvantages of the multiple approaches to containerization. Learn More>>
- On-demand webinar: "Mobility Mayhem: Balancing BYOD with Enterprise Security" Check out this on-demand webinar to hear Sophos senior security expert John Shier deep dive into how BYOD impacts your enterprise security strategy...
- Mobile Security: Containerizing Enterprise Data In this on-demand webinar, Fixmo's Lee Cocking, VP of corporate strategy, explains why Apple-ization trends like mobility and "bring-your-own-device" (BYOD) are driving the... All Mobile/Wireless White Papers | Webcasts
Our new weekly Consumerization of IT newsletter covers a wide range of trends including BYOD, smartphones, tablets, MDM, cloud, social and what it all means for IT. Subscribe now and stay up to date!