New MSN Internet Advertising Effectiveness Research Study Shows That Online Advertising Increases Brand Awareness by as Much as 300 Percent

REDMOND, Wash., Dec. 6, 1999 — Microsoft Corp. today announced that, according to a new proprietary research study* commissioned by the MSN TM network of Internet services, online advertising can increase brand awareness among consumers by as much as 300 percent.

The study, conducted by E-valuations Research of Seattle, examined the impact of Internet advertising campaigns of 16 major national advertisers, including four retailers, two entertainment companies, four technology companies, three financial service firms and three automotive brands. The survey of more than 40,000 Web users tested more than 60 ad elements, including banner ads, interstitials and sponsorship deals.

In addition, the study also recorded how online advertising impacts consumers’ intent to make a purchase. Respondents were over three times more likely to purchase an advertised brand than survey respondents who didn’t remember seeing the online ad campaign. For Internet companies working to establish a new brand, the study showed positive news. According to the study, consumers’ intent to purchase was higher for ads from new online brands compared to advertising for established offline brands.

“Despite concerns by some within this industry concerning click-through rates for online ads, this study proves that online advertising is a very effective use of advertising dollars,”
said Jim Kinsella, general manager of MSN Sales and Marketing.
“Online ad campaigns not only assist companies with their branding goals, but also have a bottom-line impact on a consumer’s decision to purchase an advertised product or service.”

About MSN

MSN is the network of Internet services from Microsoft that helps people better organize the Web around what’s important to them. The network of MSN services, located on the Web at TM ( ), helps people easily stay in touch with friends and colleagues, make smart and secure purchasing decisions, and get more done. MSN offers award-winning
e-mail functionality; personal communications services; wireless services information; customizable access to news; popular sites for personal finance, travel, automotive services, shopping and more; an online community; a Web search engine and directories; and top-rated Internet access.

About Microsoft

Founded in 1975, Microsoft (Nasdaq
) is the worldwide leader in software for personal and business computing. The company offers a wide range of products and services designed to empower people through great software — any time, any place and on any device.

*The study on the effectiveness of Internet advertising began in the summer of 1998 and is still being conducted. The study data is accurate within +/- 5 percentage points at a 95 percent confidence level.

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Other product and company names herein may be trademarks of their respective owners.

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