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Microsoft foresees ad revolution after Powerset buy

Stephen Shankland CNET News

Published: 20 Aug 2008 14:14 BST

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Microsoft bought search start-up Powerset with the expectation that its natural-language processing technology would give a better understanding of search queries and the content of web pages.

However, the company also believes Powerset's technology could help advertisers find placement on web-search results, said Scott Prevost, Powerset's general manager and product director, in a meeting with reporters in conjunction with the Search Engine Strategies conference in San Jose, California.

Today, advertisers bid to have their ads shown on search-results pages depending on specific keywords that users type into search engines. That can be an onerous process, given how many keywords are involved with a particular segment. Using natural-language processing could lead to an entirely different mechanism for linking ads to search results, Prevost said.

"If people aren't bidding on keywords, and are bidding on concepts, it could completely change the ball game," Prevost said.

Credit: Microsoft sees Powerset-powered search ad revolution from CNET News

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