Microsoft’s acquisition of Xandr signaled the company’s renewed bet on advertising. Its global partnership with Netflix paves the way for it to compete in the rapidly growing connected-TV marketplace as both platform and tech vendor.

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Summary

Microsoft’s acquisition of Xandr, which closed only a month ago in June 2022, signaled the company’s renewed bet on advertising. Its global partnership with Netflix paves the way for Microsoft to compete in the rapidly growing connected-TV (CTV) marketplace as both a platform and a tech vendor.

Microsoft’s renewed advertising ambitions are focused on CTV

Microsoft is of course not new to the advertising market: alongside Yahoo and AOL, it was a powerhouse in the early days of web display advertising. However, unlike Google and Meta, the company did not weather the market transition to mobile and video formats. Likewise, Microsoft’s Bing never achieved a significant paid search market share: this market is dominated by Google, though Amazon is also capturing an increasing share. However, the deal with AT&T to acquire Xandr, announced at the end of 2021 and completing in June 2022, signaled Microsoft’s renewed ambition in advertising.