Microsoft is entering the mobile advertising space. The move can be seen as an indication that Mobile is really getting big. Earlier, Google already unveiled its Open Handset Alliance and plans for mobile phones. With Microsoft also in the game, expect another battle. Again, all to the customer’s benefit.

Microsoft will start by placing banner ads on the MSN pages viewed on mobile screens.

Microsoft also added new content to its mobile offering. Users can now book tickets by giving their ZIP codes. Microsoft’s platform will work on all the carriers and handsets. This has been achieved using the technology developed by ScreenTonic and aQuantive, both of which it acquired.

The initial reports are quite positive Bank of America, Jaguar Cars of North America and Paramount Pictures have signed on as the first three advertisers on Microsoft’s platform.

Over the years, Microsoft has come up as a smart company. So, despite of many disliking Microsoft for some of its buggy products and strategies, Microsoft has made sure that it keeps pace with the changing market dynamics.

The beginning is modest, but sure to secure Microsoft an initial place in the soon-to-begin Mobile advertising battle. Google had a great head start in the Internet advertising battle, and it won. Microsoft is making sure this doesn’t get repeated, by entering the space pretty early.

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