Technology, Online Advertising | featured news

Microsoft said Thursday that an accounting adjustment to reflect a weak online ad business led to its first quarterly loss in its 26 years as a public company. The software company had warned that it was taking a $6.2 billion charge because its 2007 purchase of online ad service aQuantive hasn't yielded the returns envisioned by management. The non-cash adjustment is something companies do when the value of their assets decline. Microsoft Corp. paid $6.3 billion for aQuantive, only to see rival Google Inc. expand its share of the online ad market.

Google Inc's revenue increased 21 percent as strength in its Internet advertising business offset a persisting drop in ad rates, stirring hopes among investors the Web search leader is close to slowing that decline.

Shares of online marketing services provider ValueClick are taking a beating after hours Wednesday following the company's Q1 financial report. ValueClick posted revenue of $152.9 million, up 31% from a year ago, but below the Street consensus at $157.8 million. Guidance had been for $155 million to $160 million.

Google, of Mountain View, Calif., issued a fourth-quarter report in January that largely fell flat on Wall Street, as profit came in well below expectations. During a subsequent conference call, executives were peppered with questions about an 8% decline in prices paid by advertisers during the period every time a user clicked on their ads.

Almost lost in Zynga’s disappointing fourth-quarter earnings report was one bright spot: advertising. Ad revenues jumped 230%, to $27 million in the fourth quarter–almost four times the social gaming company’s 59% rise in overall revenues. Chalk it up in part to a new, more interactive kind of ad from “engagement marketing” firm SocialVibe.

Google Inc's quarterly results fell short of Wall Street's heightened expectations for the holiday season as declining search advertising rates contributed to a rare miss, triggering a 9 percent slide in its shares.

Facebook's Ticker, the fast-scrolling tote board of pretty much everything your friends are doing, is ready to start selling you stuff.

Disney is buying Babble Media, whose website carries news for parents and blogs written by moms and dads, in a deal that could further blur the line between advertising and blogs.

Competition's all relative. Yahoo, Microsoft and AOL all compete for ad dollars, but they all agree that marketers ought to put their budgets into premium content, not search or social.

Rapper Snoop Dogg gave props on Twitter to an ad for the Toyota Sienna minivan. Actress Tori Spelling linked to a website for rental cars. And reality TV star Khloe Kardashian soliloquized about the brand of jeans that accentuates the famous Kardashian derriere.