The ROI Hunters have been watching the latest fad: Ad-Supported Software. One such example caught our eyes and we sat around saying “Good idea, but who cares?” We are talking about Microsoft Windows providing a free ad-supported version of their successful operating system with free low end machines. After all, shouldn’t Hunting ROI be a win-win situation?
Defensive Leader Tactic
Microsoft is executing a defensive tactic, which we applaud. They are the leader. After all, their popular operating system generated around 13 Billion in sales last year (give or take a few Million), so it is not like they will be hurt by giving their software away with low end machines. This is an excellent response to some of the UNIX flavors running around for the last decade. Actually, it did make us wonder why it took them so long to give it away, at the low end of the price spectrum.
Free Computer System: Give away the free ad-supported Windows OS on a low end $300 machine to those that can’t afford or don’t want to spend a lot on their technology needs. Obviously, there is a tether to the internet in this package somewhere. Either a low-cost dial up or wireless connection will need to service the ad generator. The ultimate goal: Increase Market Share & Attack UNIX competitors that have been flanking Microsoft.
Our question is directed at the poor soles that will buy advertising space on this channel. Which demographic would you place someone in that can’t afford or doesn’t want to buy a $300 dollar machine and the $100 operating system. What exactly are their on-line spending habits? How much do you think they will purchase on-line? Let’s face it, JupiterResearch reported at 40% increase in online ad spending last year, but we are fairly certain that this demographic was not the leader in this increase.
Maybe we are seeing the beginnings of the Lotto Advertising Network. (I hear the jackpot is going to be really high next week, but don’t ask me what your odds are) Good Hunting.