Microsoft’s Content Ads might change the way we look at contextual advertising forever. A select group of high end advertisers have begun to receive invitations to join Microsoft’s Content Ads contextual advertising system.

The Content Ads pilot will be running this fall. The Content Ads will appear on MSN Real Estate, MSN Money, and MSN Portal. Microsoft will be taking Google Adwords head on with this beta release. The company said that “Content Ads is Microsoft’s next product that allows advertisers to place content-targeted, text-based advertisements primarily on Microsoft-owned properties including MSN Money, Real Estate, and many others within the www.msn.com portal.” From the company’s statement, it is quite feasible that web site publishers will be able to get into the program before it official drops the beta testing.

A publisher myself, I am always excited to see a new contextual advertising system being released. The Content Ads will be utilizing demographic targeting, incremental bidding system, geo-demographic targeting, and much more flexibility than Google Adwords or Yahoo Publisher Network. Currently, there is no information available whether or not Microsoft has implemented a more advanced click fraud proof system.