Microsoft Lifting the Lid On Windows Live

Microsoft on Tuesday took the beta wrapper off its suite of free Windows Live services--from mail, Hotmail and messenger to its new photo gallery, Spaces social network, writer and events-planning services.

Now, the software-cum-Web service behemoth plans to start marketing its Live services aggressively to consumers with the help of agency McCann WorldGroup. No word yet on how much Microsoft plans to spend on the cross-channel campaign.

To demonstrate the reach of Windows Live, Microsoft on Tuesday released research conducted in conjunction with TNS Media Intelligence, which found that 60% of Live users are 18 to 34 years old.

Using this data, Microsoft is preparing to sell Madison Avenue on the prospect of reaching young consumers seamlessly across Live service's various touchpoints, including IM, email, and social networking, along with mobile and gaming.

Microsoft is also using its recently strengthened relationships with Facebook and Digg.com to test various integrated ad products. But that doesn't mean Microsoft has given up on its Spaces network.

"We haven't spent enough time branding [Spaces]," admitted Timothy Waddell, director of product sales strategy for Microsoft's digital ad solutions unit. "But that's about to change."

Separately, Microsoft on Tuesday said it fired Stuart Scott, its chief information officer. In a written statement, the company confirmed that Scott was terminated for "violation of company policies." Further details were unavailable by press time. In the interim, Scott will be replaced by general manager Shahla Aly and corporate vice president Alain Crozier.

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