The World: Las Vegas - Microsoft predicts ad budget digital shift by 2010

Microsoft expects to switch the majority of its $440 million-plus ad budget into digital channels within the next three years.

Mich Matthews, the senior vice-president at Microsoft's central marketing group, told an American Association of Advertising Agencies conference: "We're pretty confident that by 2010 the majority of our media mix will shift to digital."

Microsoft spent $447 million in measured media last year, according to TNS Media Intelligence. Eighteen per cent of that went on internet advertising.

Matthews said that the shift reflected the changing habits of consumers, who were spending an increasing amount of time on the web, and are becoming more important in deciding how marketing messages were distributed.

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