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Skype Looks to Ads for Site

10 Mar 2011

Skype, the free internet communications service, has announced plans to introduce advertising as it seeks to boost revenue ahead of going public.

Skype, which bypasses the standard telephone network by channelling voice, video and text conversations over the web, said the ads will appear in Britain, Germany and the United States for now.

The introduction of advertising is Skype's latest bid to increase revenue ahead of an initial public offering expected later this year.

The Luxembourg-based Skype, which was founded in 2003, announced plans in August to raise up to $US100 million ($A98.65 million) by listing on the tech-heavy Nasdaq stock exchange in the US.

"The Skype experience is our first priority, which is why we've taken a lot of time working through and testing what kind of advertising would work best in the Skype environment," Skype said in a blog post.

"We believe that advertising, when done in the right way, will help us continue to invest in developing great products," the company said.

It said initial advertisers include discount coupon site Groupon, Universal Pictures and Visa.

Skype said ads will appear in the home tab in Skype for Windows "and we may experiment with ads in other areas as well".

"The ads won't interrupt your Skype experience," the company said.

"You won't suddenly see annoying pop-up ads or flashy banner ads in middle of conversations."

According to its IPO registration statement, Skype generated $US406 million ($A400.5 million) in revenue in the first half of 2010 and had 560 million registered users.

Source: ninemsn


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