Microsoft Adds Behavioral Targeting to Search Engine

AP reports that Microsoft (MSFT) is bolstering its search capability by offering behavioral targeting.

I am expecting - and have not ruled this out yet - MSFT to acquire one of the following companies:

- aQuantive (AQNT)
- Valueclick (VCLK)
- Tribal Fusion
- Revenue Science
- Tacoda
- etc.

MSFT won’t invest in content as illustrated when it sold Slate.com, the company's little political/content experience, to the Washington Post (WPO). But to ride the online advertising wave, I could see it buying some of these firms. In fact, it might be crazy, but buying Tacoda to add a Dave Morgan - who founded 24/7 Real Media (TFSM) - is not a bad idea.

VP of Sales Joanne Bradford is seen as a star at MSN, and I’m not taking anything away from her, but if MSFT wants to get serious about online ads, they could use all the help in the world with Google (GOOG) continuing to fire on all cylinders and Yahoo!’s (YHOO) much vaunted Panama seeing the light of day.

MSFT vs. AQNT vs. VCLK 1-yr chart:

Disclosure: I own shares of AQNT, and have owned VCLK in the past, but not now.