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Microsoft adCenter is turning one year old this month but looks like it has failed to achieve anything great except better monetization than their previous system, Overture (which was later bought by Yahoo!). Well, the problem is not with adCenter but with their search engine, Live Search.

To add to their woes, they overbilled customers because of a bug and advertisers were upset when Microsoft moved their ads outside the search engine to its MSN Web sites. Still others say adCenter’s software, while indeed sophisticated, is slow and unreliable. You can find more complaints about adCenter here.

adCenter’s ad revenue soared by 23 percent to $456 million for the quarter ended March 31, 2007. The business had $623 million in overall revenue, up from $562 million for the same period the previous year, but it showed an operating loss of $200 million, compared with a loss of $24 million a year ago.

Via: The Seattle Times

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