Microsoft is launcing its own competition to Adsense and Y! Publisher Network.

Their first steps were to launch what they call adCenter in France and Singapore. What adCenter allows advertisers to do is to target specific demographics using information obtained from Hotmail and Passport users. The ads will only be on Microsoft sites at first, but later they hope to expand their advertising network to compete against Yahoo, and Google.

“The launch of adCenter in France and Singapore is a great first step to delivering on our global vision to connect advertisers to consumers in a much more meaningful way,” said Yusuf Mehdi, senior V.P. of MSN Information Services & Merchant Platform.

This means that they will be able to target ads based on location, gender, age, and even time of the week. Looks like TGIF ads might be all the annoyance soon.

If Microsoft has no information on the visitor it will display ads based upon keywords.

MSN currently uses ads by Yahoo and has not yet said what they plan to do with the Yahoo ads, but everyone knows they will eventually get rid of them, though they are contracted with Yahoo until 2006.

Testing in the USA will begin during October.

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