Internet Marketing July 29th, 2009
As previously announced on this blog, the much speculated deal between Microsoft and Yahoo! has finally been announced. Yahoo! has finally given up on search and Microsoft is now firmly in control of much more visitor data than they ever have before.
A quick summary of the deal announced Wednesday July 29th 2009:
In layman’s terms here are the key things that you really need to know about this deal:
Yahoo! CEO Carol Bartz
Microsoft CEO Steve Ballmer
Both sides are getting exactly what they need. Yahoo! will actually receive an increase in revenue and will retain perceived control over the sales process. Shareholders of the company will be happy about this.
Microsoft wants control over market share at this point so that they can support the continued technology improvements of both Bing and paid search component – AdCenter.
Paid search advocate at TechWyse, Matthew Hogan is happy with Microsoft taking control of paid search. “Yahoo! has put very little research and development into the paid search interface (dubbed Panama) since its release. Microsoft AdCenter has been showing continued improvement since its initial release and has many improvements over even Google Adwords interface. I expect this news to ensure the continued improvement of the paid search landscape and also for the first time – a legitimate player to faceoff against Google.”
While it may appear that Yahoo! increases revenue, the real value here long term is that Yahoo! has stapled any threat of Microsoft taking greater market share and Microsoft is now assured long term market share and vast samples of data to improve the overall search experience. Microsoft can begin trying to put itself on equal ground with Google.
Microsoft now has access depending on who you talk to of about 15%-30% of the market. They have quite a ways to go. But this is the biggest step Microsoft has ever taken in competing with Google.
Let the games begin.