Microsoft brings local classified advertising to the Internet. Their Windows Live Expo website provides online free advertising in your local area.

Classified advertising and searching just got much easier. You can post your product on their website along with the location, and customers in your area can find you. This can be used for both commercial and personal advertising.

At your option, Windows Live Expo will integrate with your MSN Instant messaging, so your customers can find you online and talk to you in real time if you desire. You can also choose to just use the private messaging system to communicate with your potential buyers.

This service directly competes with Google Base, which launched earlier this year.  Both programs are currently in beta. Right now the only locations available are in the U.S. Hopefully this will expand to world-wide when the service comes out of beta.

One of the very nice features of Windows Live Expo is the ability to see a map of your search results so you can see the exact locations where items are for sale. You can hover over the item for a short description and picture if included, then click on it to go to the listing.

Microsoft has the standard disclaimers for items requiring that you do not break any laws, no unsolicited commercial advertising, and no hateful or harassing content. They also do not allow affiliate marketing, so the product must be your own that you are selling.

The target audience for this service is very similar to the target audience for eBay. It will be interesting to see if hordes of eBayers flock to Windows Live Expo and Google Base.