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Microsoft hopes its new advertising system will match many of the features of Google's system, which is generally seen as more advanced than Yahoo's, and add a few innovations. The most significant advancement in the MSN technology is its ability to direct ads to viewers according to demographic characteristics, as well as by the day and time the ad is shown.
"Google uses its network to build adoption of its Web search," Mr. Mehdi said. "We can drive a deeper relationship with hundreds of thousands of small businesses out there."