Microsoft is making a deal with AOL to expand its Display Advertisement business.
On Monday Microsoft announced it has made a deal with AOL and will allow the company to handle the Display Advertisement from now on. According to the deal between Microsoft and AOL, the sale of all ads such as display, video and mobile will be handled by AOL.
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AOL will manage the display ads featured on Microsoft applications such as MSN, Outlook.com and Xbox gaming consoles. AOL will be responsible for the display ad business in the U.S., Canada, Japan, Brazil and five European countries.
The exact terms relating to the finance agreement were not disclosed about the deal although it is believed the revenue will be split in half by both companies made from advertising each other’s products.
The corporate vice president of advertising and consumer monetization at Microsoft, Rik van der Kooi stated the news proves Microsoft is focused on increasing its strength in the search engine and search advertising to create great consumer content.
The deal is one of several new ventures by Microsoft to emphasize on its core products. The deal was pushed by the Chief Executive of Microsoft Satya Nadella, according to whom empowering everyone and every organization will achieve more on planet earth.
AOL revealed as part of the deal about 1200 Microsoft workers will be upgraded to jobs in fields such as marketing and engineering, and both of the companies insisted there will absolutely be no job cuts as a result.
While display advertisement is comparatively a small revenue earner for Microsoft, the deal will greatly benefit AOL, as it will gain access to the youngest and most valuable Microsoft costumers. The deal between Microsoft and AOL will last for at least 10 years.
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