Microsoft is gathering a team of more than 50 researchers from MSN and Microsoft Research to create technologies that will better target online advertisements.

The scientists have backgrounds in areas including data mining, information retrieval, statistical analysis, artificial intelligence, auction theory, visual computing and digital media.

A well targeted advertisement is considered to generate higher fees, and will give end users a more relevant online experience.

The Microsoft adCenter Incubation Lab is currently working on paid search, behavioural targeting and contextual advertising. It will also look at new techniques such as barcode readers, social network mining and bringing online advertising to video and large displays.

Users watching a video ad would be able to zoom in on products and request additional information.

Microsoft hopes that improving the targeting of its online advertisements will boost revenues for its online services such as MSN and the forthcoming Microsoft Live applications.