Filed under: Deals, Competitive strategy, Google (GOOG), Microsoft (MSFT), Yahoo! (YHOO)

Microsoft (NASDAQ: MSFT) is losing the online ad battle to Google (NASDAQ: GOOG) so why not get into the TV advertising business?

According to The Wall Street Journal, Redmond will buy “Navic Systems Inc., an eight-year-old company that helps advertisers place ads on television programs.”

Whatever Microsoft paid is too much. Small M&A deals are not going to do anything to help the world’s largest software company, especially if they are in slow growing part of the advertising market like TV. Navic may be good at targeting messages to consumers using demographic data and user information from set-top boxes, but over time, TV will have a smaller and smaller piece of the total marketing pie.

Microsoft appears to have lost its battle to buy Yahoo! (NASDAQ: YHOO), but the online ad business is still the only part of the industry that is still growing in double digits. The company needs to put its acquisition money there and stop fooling around with old media.

Douglas A. McIntyre is an editor at 247wallst.com.

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This entry was posted on Friday, June 20th, 2008 at 4:23 pm and is filed under Goog news. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.