Microsoft is launching its online ad platform dubbed AdCenter in the United Kingdom on Monday to handle all of the paid-search traffic on MSN Search and Windows Live.

Microsoft AdCenter helps advertisers to plan their online ad campaigns and improve targeting, and will rival services from Yahoo! and Google.

We expect Microsoft adCenter to shake up the U.K. search advertising market, Sharon Baylay said, General Manager of Microsoft's Online Services Group. We're giving customers improved audience intelligence, increased conversion rates, and great customer service.

The service boats many advanced features including a keyword suggestion tool for site so site operators can fine tune their website to get more hits. Subscribers can also profile their audience, allowing advertisers to gain insight into potential customers previously not available.

All of paid search traffic on Microsoft online properties in the U.K. will now use this system, severing ties with its former partners Yahoo/Overture.

MSN had 12.8% market share in June 2006, down from 13.1% in May 2006, according to Internet research firm, comScore. Merryl Lynch report that Microsoft offers stronger return-on-investment (ROI) the competitors, but query traffic is limited and growing slower than Google and Yahoo.

However the Redmond Wash.-based company does have the advantage of operating in markets outside the internet where digital advertising can be utilized. Over time, the company said it will adSense to other properties, including Xbox Live and Office Live.

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