Microsoft’s fresher outlook – a direct hit to Google’s Gmail- MSFT, GOOG & AAPL

Boston, MA 02/20/2013 (wallstreetpr) – Microsoft Corporation (NASDAQ:MSFT) is leaving no stone unturned in its efforts to oust Google Inc (NASDAQ:GOOG) from the email market. The Redmond, Washington based, internet company is pumping $30million-$90 million into its latest and supposedly biggest marketing campaign. All this in an effort to juxtaposition the flailing company to the top slot in the email market. An estimated 60 million accountholders were welcomed into the Microsoft Corporation (NASDAQ:MSFT) fold in its preview period. This number included the 20 million Gmail defectors.

No holds barred marketing

The Microsoft Corporation (NASDAQ:MSFT) motivational campaign will be flooding radio stations, prime-time television, billboards, buses and websites with advertisements. Audio, video, print and mobile media is all going to put in use. This over and above the marketing campaign that targeted Gmail as an intrusive service that pried into customer accounts to position online ads based on information that customers had in their mails. When customers frequently visit their email accounts and go through the mandatory personal identification process, their presence gets logged automatically and ad positioning is based on it. Email services of all major service providers have been retooling services to keep pace.

Emailing still not biting the dust

Though sending text via phone is becoming increasingly popular and people are on their smartphones, iPads and tablets more than before, the company still believes that email is irreplaceable and habit and conditioning win hands down over advances in mobile technology and services. People may be on their phones but they are not necessarily texting- they are checking email too and Microsoft Corporation (NASDAQ:MSFT) wants to make sure that its Outlook they are checking and MSN Messenger that they are using. And so, it’s not just Google Inc (NASDAQ:GOOG) that is being targeted. Other players such as Yahoo and AOL are also expected to be washed away in the marketing wave that Microsoft launched on Tuesday.

Making strategic changes

Microsoft runs several email services including Hotmail and users of all these services have been intimated that they have to switch to Outlook. If this does not take place voluntarily, by summer all Microsoft email service users will be force-migrated to Outlook.com. The new Outlook features will include functionality such as massive file attachments within a single email (these could include hundreds of pictures), synchronization of address books and contact information update that take place on Linkedin Corporation (NYSE:LNKD), Twitter, Facebook Inc (NASDAQ:FB) and fewer advertisements than those that exist on Hotmail. Though this seems like a good addition there is nothing novel about it as Google already has all of this and more.

The market status

There was a time when Hotmail was the email leader. Microsoft admitted that it’s highly popular email service lost its edge as it had failed to evolve and keep astride of market trends and Google moved into the scene 9 years ago and made a clean sweep of the market that had been left open to be captured. Today, 425 million users access Gmail via computers and mobile devices and this is a 21 percent rise since last year. Yahoo comes in second but showed a 2 percent decrease at 293 million users. In hot pursuit is Hotmail at 267 million users (this was a 16 percent decline since last year). Apple Inc (NASDAQ:AAPL) has benefited from its iPad and iPhone launches while Google Inc (NASDAQ:GOOG) from its Android launches and Microsoft Corporation (NASDAQ:MSFT) launched Surface to target mobile users. Thus the email market steams ahead into 2013.

Shares of Microsoft Corporation (NASDAQ:MSFT) were up by 0.95% to close at $28.05

Shares of Apple Inc (NASDAQ:AAPL) were down by 0.04% to close at $459.99

Shares of Google Inc (NASDAQ:GOOG) were up by 1.76% to close at $806.85

Please make sure to read and completely understand our disclaimer at https://www.wallstreetpr.com/disclaimer. While reading this article one must assume that we may be compensated for posting this content on our website.

Published by Pushpa Naresh

Pushpa Naresh has done MBA (Finance) and an avid market tracker. She is a technical analyst who closely tracks US markets along with other global markets like India. She has been expressing her views about markets and also advises various clients.

Recent Stories

SignUp Now For Our Featured Newsletter