Microsoft Adds Web Broker to Online Ad Strategy

"We only have a small piece today" of the online advertising market, but that will change as it "becomes a mainstream thing," said Chairman Bill Gates. "We have a lot of our top people thinking" about how to match search with advertising, he added.

Johnson estimated the online advertising market will grow from $40 billion now to $80 billion over the next three to four years, "Now, we're putting those assets together to go after this advertising revenue in a big way," Johnson said.

As for its core operations, the company told investors it has sold 60 million copies of its Vista, released in January. The company said in April it had sold 40 million copies to date. That's about half the rate at which the operating system had sold before some PC makers, such as Dell(DELL Quote - Cramer on DELL - Stock Picks), began allowing consumers to order new PCs loaded with the older OS , Windows XP, instead.

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