Steve Ballmer, Microsoft CEO, made the announcement at the seventh annual MSN Strategic Account Summit, as the software giant launched the service in the US, which will now serve all ads on paid search traffic.
The adCenter will be launched in the second half of 2006 after a UK trial begins testing with a limited number of advertisers in June.
Ballmer says that ad-supported software services are a key part of Microsoft's plans to give consumers access to a broader variety of digital media.
"Our close partnership with the ad community is extremely important to us as we evolve Microsoft from a software company into the world's largest, most attractive provider of online media through MSN, Windows Live and adCenter," Ballmer said.
Microsoft unveiled adCenter last March and promised it would allow advertisers to more strategically plan and buy their online search, contextual or online display ads.
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