Microsoft tinkering with smart ad spots

art.ads2.ap.jpgMicrosoft Corp.’s online advertising researchers will spend this year teaching computers to be smart about sticking ads into video clips, and to be even smarter about targeting ads to specific Web surfers.

Microsoft showed off a handful of early-stage advertising projects at its headquarters Tuesday that may or may not turn up as part of Microsoft’s Web advertising platform.

The demonstrations come just days after Microsoft’s $44.6 billion bid for Yahoo Inc., which, if successful, will boost the software maker’s Web traffic and online ad revenue.

With its 2006 acquisition of aQuantive, the software maker gained a broader network of Web sites on which to sell ads, and tools to help marketers buy them. Read More >