Microsoft is acquiring ScreenTonic, a company that delivers location-based ads to mobile devices.

Microsoft Corp. announced, 3/5-2007,  it has agreed to acquire ScreenTonic SA, a Europe-based mobile advertising pioneer, in a move that combines the breadth of Microsoft^® Digital Advertising Solutions offerings with the mobile expertise and industry relationships of ScreenTonic to help advertisers reach a global audience of mobile users. ScreenTonic’s mobile solutions provide advertisers with a complete range of ad formats, from display to text, as well as ad management and reporting capabilities, while serving the needs of mobile operators and independent publishers equally. ScreenTonic will continue to operate out of its current headquarters in Paris. Financial details of the acquisition were not disclosed.

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, which 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 acquisition of ScreenTonic is part of a long-term strategy to deliver relevant ads to consumers, Microsoft said. ScreenTonic said it has also worked with Apple Inc., Nokia Corp. and Nike Inc. in addition to European telecommunications operators in Belgium, France and the U.K.

 

The Opportunity for Advertisers

The acquisition of ScreenTonic, in addition to Microsoft’s work with industry groups such as the Mobile Marketing Association and the Interactive Advertising Bureau, will be an extension of Microsoft’s commitment to connect advertisers with their target audiences at home, at work and on the go across multiple digital devices such as PCs, Xbox^® video game systems and mobile phones.

“The mobile Internet is an extraordinary vehicle for brands to connect with their target audiences, because devices like cell phones enable interaction to take place virtually anywhere or anytime,” said Steve Berkowitz, senior vice president of the Online Services Group at Microsoft. “The acquisition of ScreenTonic will be part of our long-term strategy to deliver ad experiences that map to the environment. Together, we will be able to provide relevant ads where consumers are, when they are actively engaged and communicating.”

The Commitment to Mobile Operators

 Berkowitz said it is important for Microsoft to deliver ad experiences that are mutually beneficial to publishers, mobile operators and consumers alike. ScreenTonic has relationships with some of the largest mobile operators in Belgium, France and the U.K.

"The acquisition of ScreenTonic is part of a long-term strategy to deliver relevant ads to consumers, ScreenTonic  also worked with Apple Inc., Nokia Corp. and Nike Inc."

 “Mobile advertising is expected to experience tremendous growth over the next five years,” said Didier Kuhn, CEO and co-founder of ScreenTonic. “We are very excited to expand our presence in this exciting marketplace with Microsoft. We’re confident that the combined strengths, services expertise and talent of our companies will deliver a great experience for advertisers, publishers and mobile operators alike.”

Last year, ScreenTonic announced it had gained €5.5 million (US$7.4 million) in new funding from investors 3i Group PLC and I-Source Gestion SA, while also opening a subsidiary in London.

About MSN and Windows Live

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About Microsoft Digital Advertising Solutions

Microsoft Digital Advertising Solutions encompasses a robust set of global advertising products and services designed to effectively connect advertisers with their target audiences across multiple digital lifestyle touch points. Advertisers can actively engage with a global audience of more than 465 million unique users per month across the MSN network, as well as millions more consumers through Windows Live, Xbox LIVE^®, Microsoft Office Online and Live Search. More information about Microsoft Digital Advertising Solutions is available at http://advertising.microsoft.com.