Up till now, Microsoft hasn’t been interested in the location-based advertisement realm. Location-based ads have long been advertisers’ holy grail – offering more targeted and relevant ads resulting in a higher probability of clicks. More clicks also tend to equate to higher revenues thanks to their targeted nature.
Microsoft’s hesitance to enter this revenue stream seems to have ended with the revelation that their Local Scout app on Windows Phone has started offering ads to businesses in the users’ vicinity via their internal gps.
Some believe that the next step for Microsoft would be to provide toast notifications. Though many users may not be pleased with the idea of toast notifications for ads, the additional revenue stream would help justify the investment in the Windows Phone Operating System. Such revenue could be used to expand and improve their services.