At Microsoft, advertising has become an increasingly important source of revenue over the past few years. “Our search revenue encompasses both Bing [the Microsoft search engine] and also the revenue generated through a number of syndication deals on platforms which are powered by Bing,” explains Jose Luis Marti, director of Microsoft’s Worldwide Online Credit Services (WOCS) treasury team. “On our platform, we provide both display and search advertising, and in both cases it tends to be customized based on our customers’ and end users’ preferences.

“It’s our job in the treasury team,” Marti continues, “to ensure that the number of impressions and searches a customer purchases does not exceed what they can afford to pay, which is determined by their credit limit. If we assign a credit limit of $100,000 to Company X, then they should receive only $100,000 worth of impressions or searches. Once they reach that limit, they will not receive any more advertising until they have made a payment or they secure a higher credit limit.”

When Microsoft first launched Bing, it engaged a leading Web service provider to manage the entire sales and order-to-cash processes for its large and midsize search advertising customers. However, as Bing grew and its advertising revenue became increasingly important to the overall business, Microsoft saw a strategic advantage to bringing the full management of this business in-house.

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Meg Waters

Meg Waters is the editor in chief of Treasury & Risk. She is the former editor in chief of BPM Magazine and the former managing editor of Business Finance.

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