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Microsoft’s attempt to take down Google once and for all seems to be working as they have managed to claw another 1% off Google. Bing’s total share of the search market climbed from 8.23% to 9.43%. Now what you have to remember that 1% of the search industry will add between $180-200 million dollars in revenue to your company and so Microsoft spending $100 million on marketing was not a bad idea. However the process of implementing the Yahoo! deal is likely going to cost $200 million according to Steve Ballmer.
Whilst the MS executives should be upbeat by the fact that they are not losing market share but gaining it back they must remember that they have an enormous and very expensive mountain to climb. But this final climb is vital to Microsoft’s future and insuring that the company will still be around in 10 years, also if they pull it off they will be the only big name in search and they will be poised to take full advantage of the internet phenomena.
However data company StatCounter which published the results, doesn’t think that Google is in any real trouble.
Bing continues to make slow but steady progress but the combined Yahoo figures suggest that the deal announced last week will have to demonstrate major future synergies if it is to make any dent in Google’s dominance.
- StatCounter
However I think that Microsoft is better poised than ever to take down Google. I mean after all with the new Yahoo! deal the company has the scale and data that it needs to give Google a run for it’s money and to be perfectly frank in the arena of search Google is asleep, particularly as it goes about making operating systems and browsers. Look what happened after the last browser war Microsoft became dormant in that area and within a few years Firefox had got a third of the market. This is Microsoft’s last big shot at Google and the timing couldn’t be better.
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The deal involves no exchange of money and Microsoft will provide the search technology in terms of it’s Bing search engine. This means that you will probably end up with Yahoo! search powered by Bing. Yahoo! will provide the ad technology for both Bing and “Yahoo” search and Yahoo! will keep 88% of revenue generated from Yahoo! “search”. However both companies have said that the deal only includes search and Microsoft and Yahoo! will still compete vigorously in mail and news services which will not be affected by this deal. The deal will start in 2010 and finish in 2020 but all of the search data will be on Microsoft servers and not Yahoo! servers. This means that Microsoft has the amount of data to make an even greater and smarter search engine unlike Yahoo! who which originally pioneered search will leave the deal with no search whatsoever. Another plus for Microsoft would be the fact that Bing search is only included with IE and Yahoo! is included in every other browser (with the exception of Chrome) so this now means that Bing will be built in to every web browser on the planet except for Google’s. Yahoo! also has the second largest presence on the mobile web and this deal will make it much easier for Microsoft to push into a new, lucrative and emerging section of the search market.
I was thinking of going to a restaurant in Southend called Ocean Beach. When I do the search: Ocean Beach Southend-on-Sea I get a map showing me the locations of the restaurant and the telephone as well as a link showing me more information about the restaurant.