While Steve Ballmer figures out more ridiculous poses in front of his mirror, the rest of the Microsoft team is busy trying to trump Google, any way they can. Currently in their crosshairs: Google TV. Its kind of like going hunting for an elk, missing, and on the way home sniping a grazing cow in a pasture to make yourself feel better, but whatever.
Microsoft just announced it has purchased the TV ad technology vendor Navic Networks for an undisclosed amount. The company has raised $83m and has about 35m users through its partners Time Warner Cable, Charter Communications and Cox Communcations. Their technology allows TV ads to be "enhanced" with graphics, microblogs, and links to further information about the product being advertised. Clever technology, and very similar to Google TV's set-top targeted service.
While TV ad spending is still growing (cable spending up 4.1%, broadcast up 0.8% in Q1), its shelf life seems to be nearing an end (growth rates have been slowing in recent quarters). Nevertheless, Microsoft seems content on their soon-to-be victory over any Google division, as it was with the proposed Yahoo! deal earlier in the year. "Who cares if the company doesn't represent a sustainable addition to Microsoft, we're gonna beat Google TV!" Keen strategy. Good luck with that.
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