Since Microsoft Corp. gave up trying to seduce Yahoo - at least, overtly - the software giant has been working toward strengthening its presence in mobile.

This became evident yesterday, when Microsoft announced the availability of display advertising across Windows Live Messenger and Windows Live Hotmail.

"Microsoft is doing this to make money, that's the short answer," said Neil Strother, Kirkland, WA-based analyst at JupiterResearch.

"Right now there is a small but growing number of consumers using the mobile device to access the Web and social media properties and so Microsoft is trying to stay in the game with their advertising," he said.

Advertisers can extend their campaigns to social media through Windows Live for mobile in France, Spain, Britain and the United States by creating banner ads that will be visible across Windows Live Messenger and Windows Live Hotmail.

All ads placed on these services will adhere to recently published Mobile Marketing Association guidelines.

Microsoft also plans to expand its mobile offerings for advertisers, with the option of mobile search advertisements on Live Search Mobile.

Advertisers will be allowed to create keyword campaigns through Microsoft adCenter that target customers on the go while they are using Live Search Mobile.

This marks the first time Microsoft is letting advertisers monetize on mobile search.

The beta is currently available in the U.S. and will be expanded in the second half of this year.

Microsoft has made Windows Live for mobile available to 49 different markets worldwide.

Windows Live for mobile has 430 million customers with mobile access to Windows Live Hotmail, Windows Live Messenger and Windows Live Spaces from Web-enabled handsets.

The company also said that one-quarter of all digital advertising is being done in gaming, video and mobile - areas that previously were considered to be niche advertising opportunities.

"Search and display ads will continue to be a very large market and Microsoft Advertising will continue to invest in them, but ABG's focus is on opportunities in gaming, video, music and mobile where we see the growth of ad inventory and advertiser interest in connecting with audiences," said Mark Kroese, general manager of the Microsoft Advertising Business Group at the advance08 Advertising Leadership Forum yesterday.

Mr. Kroese also said that people are constantly on the move, so the ability to get things onto their mobile device is highly desirable. Consumers are demanding content on different screens such as mobile, television and gaming consoles. It's only natural that advertisers will want to span these three screens, too.

"I think what this says is that Microsoft wants to be a player in mobile advertising," Mr. Strother said. "Microsoft is setting itself up to be ahead of the curve. Instead of waiting until there are a lot of big players, it is trying to establish itself as one of the first, just like Google and Yahoo.

"So basically, Microsoft is not sitting on its hands," he said.