Yahoo and Microsoft Deal For Some Of The Search Marbles
August 31, 2010 – 3:42 pm
Yahoo!, after a period of management disarray, is settling into a full search partnership with Microsoft. A couple days back, the technology firm aligned their services with Microsoft’s Bing to help leverage market share against Google in the search advertising industry. The technology giants agreed to a ten-year contract with the goal to be a serious contender. Yahoo was motivated to enter this direction to reduce expenses incurred from years of fiscal mismanagement leading to a reduced stock price quote. Microsoft wanted to test new search algorithms and expand their product strategies with Bing, which is also aligned with Facebook’s wealth of personal profile data. Bing needs to recoup startup expenses incurred and this is a start on that path.
Neither company is capable of catching Google alone, but as mentioned, offer unique abilities that can complement one another. First off, companies are looking to use Bing as a search index and have an ability to negotiate pay-per-click rates more palatable with their budgets. Bing needs to gain credibility with local and national businesses, and will not cut off their nose to spite their face. Facebook’s new geolocation application, Places, can drive up search indexes even more as users entrust the privacy settings installed online. Yahoo wants to gain credibility as a content provider, and possesses loyal visitors who use the website for assorted page applications such as Finance, News, and Sports. They can now focus on delivering that content with more quality.
In a perfect world, the companies will save resources, while creating a vacuum for research and development that offers a premium price point for online advertisers. Innovative technologies will present themselves and shift seamlessly between platforms. Here are some thoughts from advertisers at the San Francisco SES Conference on the impact.

youtube
Facebook
Linkedin
twitter










