Move comes after Microsoft split advertising operations from Bing search engine earlier this year, forming Microsoft Advertising
Microsoft said on Monday it plans to acquire PromoteIQ, a provider of online marketing services for online retailers and brands, as the software giant expands its advertising business.
The deal, whose terms were not disclosed, is to see Microsoft retain PromoteIQ’s team and brand and incorporate the offerings into Microsoft’s advertising division.
“Today’s announcement is an important step in the journey to innovate and accelerate our offerings,” said Microsoft Advertising vice president Rik van der Kooi in a statement.
The companies said they planned to integrate Microsoft Adverdising’s machine learning and retail products with PromoteIQ’s offerings “in the coming months”.
Microsoft said PromoteIQ’s private marketplace-style digital vendor marketing tools complement Microsoft’s current retail advertising offerings.
The combined line-up is to be targeted at retailers offering technology products via e-commerce platforms, van der Kooi said. PromoteIQ’s existing clients include Kroger, Kohl’s and Overstock.com.
Microsoft earlier this year formed Microsoft Advertising by splitting its advertising operations from the Bing search engine division.
It faces stiff competition in the digital advertising market, largely from the likes of Google, Facebook and Amazon, which together control nearly 70 percent of the online ad market, according to eMarketer.