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Thursday, March 20, 2008


Microsoft Online Executive Resigns

A well-regarded vice president in Microsoft Corp's online group quit to join a small online-ad agency, a sign of continuing turmoil within the software giant's Internet operations.

Joanne Bradford, vice president and chief media officer of Microsoft's MSN online service, will leave the software maker after seven years to join Spot Runner Inc., a privately held Los Angeles firm that uses the Internet to help companies create advertisements for television.

The departure follows Microsoft's bid for rival Yahoo Inc. and comes at a time of widespread management tumult as companies try to figure out their place in the fast-changing online-advertising business. Last week, Google Inc.'s head of online sales and operations left the Internet-search giant to become chief operating officer of Facebook Inc., the fast-growing, four-year-old Internet firm.

At Microsoft, Ms. Bradford spent her career trying to inject advertising-industry expertise into the company's software culture. The company has tried but largely failed to expand its share of the online-ad market against stronger rivals such as Google, prompting the bid for Yahoo, which has so far rejected the offer.

Meanwhile, behind the scenes, Microsoft's online group is grappling with a host of challenges, including a reorganization last month and departure of several key executives, of which Ms. Bradford is the latest.

Microsoft is also in the throes of integrating aQuantive Inc., an online-ad company it bought last year for $6 billion. That merger has elevated executives at aQuantive, a shift that threatens to displace some existing Microsoft employees, say some insiders.

Ms. Bradford, who before Microsoft worked in ad sales at BusinessWeek, was one of the few high-ranking Microsoft executives who joined the company with experience in the advertising industry. That skill set has become increasingly important as Microsoft attempts to turn around its money-losing online business.

Ms. Bradford's departure was announced in an email to employees from her boss, Microsoft Vice President Satya Nadella. For now, Ms. Bradford's position will be filled by Greg Nelson, a Microsoft general manager in charge of MSN's international operations.

Ms. Bradford at times struggled to prove herself to Microsoft's higher-ups but is credited with building tighter ties between Microsoft and large advertisers and ad agencies. She also inspired strong loyalty among Microsoft's online-ad sales team, which she headed before taking her current Microsoft position.

"It's a devastating thing for people on the sales side," said a person familiar with Microsoft's online group.

At Spot Runner, Ms. Bradford will become the company's executive vice president of national marketing services, which will focus on attracting more large, national advertisers to the company's services.

By Robert A. Guth
Wall Street Journal; March 14, 2008