Microsoft exits the ad agency business with Razorfish sale
BetaNews | at | by Mike
Microsoft's sale of Razorfish, which for only two years served as its creative advertising division, to French ad giant Publicis Groupe is not so much the indication of a new trend, but of an old trend that is being suspended for now, perhaps for some very old-fashioned reasons.
In the present-day Internet business model, the principal generator of revenue is advertising. Unless a Web site or publisher is in the music delivery business, or happens to be one of the world's few paid search providers, there's few other alternatives for a steady source of income. But as with nearly all media these days, publishers are contending with whether they actually need to invest in the creative side of the process -- why not let someone else create the content, or better yet, let's see if someone will volunteer to do it for free.