Microsoft's third-quarter advertising revenue has increased by 23 per cent to $456 million, according to figures just published by the company.The increase represents over three per cent of Microsoft's $14.4 billion revenue for the period.
Despite the enormity of the figures, it has been reported that the leap in revenues is still well below average market growth for the online advertising sector.
Charles Di Bona, an analyst with Bernstein and Company, described the 23 per cent growth as positive news for the company.
Mr Di Bona said that this area of Microsoft's business had been struggling and that now, at least, Microsoft had "stabilised the patient".
The question now, Mr Di Bona told the Seattle Times, is "how do you want to get him up off the table and move in the right direction?"
Microsoft chief financial officer Chris Liddell, however, emphasised to the newspaper that his company will "continue to invest in this business because we see it as a long-term one".
Microsoft faces far stiffer competition, in the form of Google and Yahoo!, in the online advertising market than it does with other areas of its business, such as operating systems or office software.
Walter Pritchard, an analyst with Cowen and Company, recently estimated to Red Herring that Microsoft currently holds a 95 per cent share in the home computer operating systems market.
