Microsoft Marketing Strategy?

Software leader, Microsoft Corp, recently decided to sever its domestic ties with Interpublic Group of cos. and allow for Publicis Groupe take over its North American ad-buying business. Microsoft had been a long-time, twelve year partner with Interpublic Group, and throughout their relationship, IPG has had the opportunity to managing close to one billion dollars of Microsoft spending money, which was used to fund Microsoft’s media-buying businesses. Although, Interpublic Group doesn’t manage any of Microsoft's North American media-buying businesses anymore, they “are keeping the software giant's ad-buying business in 35 countries outside North America”, which a good thing, because Microsoft is one of the Interpublic Group’s biggest clients in regards to revenue generation. Unfortunately, Interpublic will have to play a smaller role in Microsoft’s ad-buying businesses, which is also unfortunate because Microsoft “spent $614.2 million on advertising in the U.S. last year, up 19% from 2009, according to WPP's Kantar Media.”. Interpublic Groupe will definitely feel a significance decrease annual in revenue in the near future.

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