Microsoft has begun a $300m (£192m) marketing blitz for its new MSN
8 Internet access software, one day before rival America Online is
set to launch version 8.0 of its Internet software.
Although Microsoft's media campaign will not officially begin until
it launches MSN 8 on 24 October, the software giant has planned an
MSN 8 event in Wisconsin, today (14 October), to show off its
"superiority," while simultaneously unveiling a massive billboard
in New York City's Times Square.
The media bonanza, which includes online, print, broadcast, and
radio ads and runs until mid-2003, is a sign of just how serious
Microsoft is about cementing its place in the ISP market. The
campaign is double the amount of money Microsoft spent when it
launched MSN 7 last October, according to MSN product manager Parul
Shah.
The hefty investment is meant to show off what Microsoft believes
is a major update to its service. "We've made some significant
headway with this product," said Shah. The campaign also has
another specific goal - to get users to switch ISPs.
Microsoft has just released the latest membership figures for MSN,
which now claims 9 million subscriptions, up from the 8.7 million
it reported in July. While reflecting steady growth, the MSN
numbers pale compared to AOL's 35 million subscribers.
Microsoft hopes to change all that, however, with the "It's Better
With the Butterfly" campaign, which banks on the service's
butterfly logo.
The campaign aims to demonstrate how MSN 8 solves common user
complaints about their ISP, offering less spam, more effective
parental controls and better browsing, the company said.
Adding to the rivalry between the two ISPs, MSN is also launching a
standalone version of its service with the rollout of MSN 8, Shah
said, that is cheaper than AOL's offering. MSN's standalone
product, which offers MSN content services but no Internet access,
will be priced at $9.95 a month, compared to AOL's stand-alone
service, which is $14.95 a month.