Greg Linden suggests that the way to beat Google is to create a better AdSense.
AdSense is now about half of Google’s revenue and their future growth. Microsoft should strangle Google’s air supply, their revenue stream.
Targeting ads well to content is hard. Google AdSense does not do a great job of it yet. Advertising should be useful, relevant, and interesting content — information about products and services you want to hear about — and it is not. There is a real opportunity here to do it better.