Microsoft has launched advertisements on the mobile version of its MSN portal and instant messaging service in the U.S., a move the company says reflects a long-term strategy rather than a quick revenue spike. Microsoft already places mobile adverts on MSN in Japan and some European markets, while rival Yahoo! started selling mobile adverts in the U.S. in late 2006 and abroad since February. Microsoft says its service will use its own technology, as well as that from two recent acquisitions; online ad firm aQuantive, which it bought for US$6 billion, and mobile ad firm ScreenTonic, which it bought for an undisclosed sum.

“There’s a realisation that mobile advertising right now is a relatively small percentage of the pie today, but a huge opportunity in future years,” said Phil Holden, a director in Microsoft’s online unit. Ads range from small graphics to text ads and may, in the future, allow for targeted advertising. The first advertisers include Bank of America, Paramount Pictures and Jaguar.