Microsoft Corporation (NASDAQ: MSFT) Monday acquired PromoteIQ, a provider of technology for publishing advertisements on e-commerce websites. The tech giant is yet to reveal the financial terms of the deal, which is part of its efforts to give stiff competition to Amazon (AMZN) in the public cloud space.
The deal will help Microsoft ramp up its retail advertising offerings. After integration, PromoteIQ will become a unit under Microsoft Advertising, while retaining the brand name. It is expected that PromoteIQ’s current offerings will get a major boost in the coming months when the various technologies of Microsoft, including artificial intelligence and machine learning, are integrated into it.
The solutions to be offered by the companies will help retailers innovate their digital platforms extensively. In the last fiscal year, advertising accounted for about 10% of Microsoft’s total revenues. Recently, the company separated the Bing Ads brand from its online advertising business and renamed it as Microsoft Advertising.
“We greatly admire the work PromoteIQ has done and couldn’t be more excited about this acquisition’s potential to empower global retailers and brands, accelerate PromoteIQ’s growth and expand Microsoft Advertising’s reach and scale,” said Rik van der Kooi, corporate vice-president of Microsoft Advertising.
For the fourth quarter, Microsoft reported a double-digit increase in earnings and revenues, helped by broad-based growth across all the business segments. Last month, the company’s shares reached a new peak, after gaining steadily since the beginning of the year. The stock traded sharply lower during Monday’s regular session.