Print 10 comment(s) - last by EricMartello.. on Jul 29 at 12:06 PM

Microsoft and Yahoo have reportedly signed a new deal, which will give the pair a third of the search market. Microsoft's Bing search engine will power Yahoo's search, reportedly, while Yahoo will switch to a supporting role, deploying Microsoft's advertising technology.  (Source: Freaking News)
Pair is back together again

Someday there will be a very popular daytime soap opera based on the exploits of Yahoo and Microsoft.  Well, perhaps not, but the pair certainly has offered the tech community a long and drama-filled relationship over the past year and a half that has no real equal.  The on-again-off-again duo has reportedly overcome changes of management (Yahoo), a new search engine (Microsoft), and a fizzled hostile takeover to hook up yet again.

Reuters is reporting that a source close to the discussions has revealed that the pair have signed an advertising deal that will last 24 months.  Reportedly Microsoft won't pay Yahoo anything up front and the relationship will be one of equals, chiefly consisting of revenue sharing.

According to the publication Advertising Age, which was among the first to reveal the news, Yahoo's search will now be powered by Microsoft's newly designed Bing search engine.  Yahoo will shift its focus from search to mutual advertising sales powered by Microsoft's technology.

The deal seems to be one of necessity for both companies.  Microsoft's Bing had been on the rise over the last few months, but its gains were minute compared to the gap between its marketshare and Google's.  Yahoo, meanwhile, has showed no momentum at all, losing more marketshare to Google and Microsoft.

Together the pair will form a much larger, but still lesser search engine.  Last month Google owned 65 percent of U.S. internet searches, according to market researchers Comscore.  Yahoo held 19.6 percent and Microsoft held a mere 8.4 percent -- so the combined Yahoosoft (or Microhoo, perhaps) search hybrid will own approximately 28 percent of the market.

Despite the combined entity holding a lesser position, Google indicated last year that it would challenge any such partnership on antitrust grounds.  The U.S. Justice Department and the EU similarly criticized the companies' talks last year.  States Colin Gillis, an analyst at Brigantine Advisors, "Any agreement where Microsoft powers search and shares the search data to Yahoo is open to scrutiny from US and EU justice departments."

Some speculate that the Justice Department or EU could limit the pair's ability to collect user information due to privacy concerns.  This could sour the young relationship, hampering the pair's ability to compete.  While their young tryst may be ultimately doomed to failure, it appears that Yahoo and Microsoft may be ready to try for a public relationship at last.

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Competition in online advertising is WELCOME!
By EricMartello on 7/29/2009 4:13:49 AM , Rating: 4
My professional background has me building and promoting websites - both my own and for clients - and my view of Google is a very polarized LOVE-HATE kinda deal. Some of their free services are awesome, but when it comes to ads...ugh...not the best way to spend your ad dollars.

Google not only "defines" the web for a lot of people, but they control a large share of online advertising. If the site is ranked high on Google, people see it...if not the site will be buried because Google thinks that's how it should be. I do not like Google's approach to ranking sites...I don't think a single company of that size should be able to dictate what people see and don't see.

There really needs to be another "force" in the marketplace that equals Google and forces them to check. I've had clients who spend $5,000 PER DAY brushed off by AdWords with the mysterious reason that "Their site does not meet the minimum quality score requirements..." Ask Google what the criteria are so that you may improve the site? They won't say...just keep getting canned responses. Needless to say I've found and use other methods to advertise, keeping AdWords on the down-low.

We'll just have to see what happens if MS and Yahoo can get something going...because back in the day Overture (today called yahoo search marketing) was a solid alternative and/or compliment to AdWords. You could reach a whole other segment. I'm keeping my fingers crossed but not expecting much. :)

RE: Competition in online advertising is WELCOME!
By omnicronx on 7/29/2009 8:40:44 AM , Rating: 2
By Spivonious on 7/29/2009 9:18:28 AM , Rating: 2
a unit vector in the ass direction


RE: Competition in online advertising is WELCOME!
By omnicronx on 7/29/2009 9:19:20 AM , Rating: 1

In order to serve high quality ads to our users, we use the Quality Score to set minimum bids for keywords based on keyword clickthrough rate (CTR), ad text relevance, the historical performance of the keyword on Google, and the user experience on the ad’s landing page. Keywords with a higher Quality Score are rewarded with a lower minimum bid, so it costs less for those ads to be eligible for display. Low quality keywords receive higher minimum bids, often making them inactive for search because their maximum CPC does not meet the minimum bid.

Took me two minutes.. Its not up to Google to tell you how to improve your site, a few minutes of research would have explained everything.

P.S Can't you just call me an As5hat? There is no need for a link. Although the picture was quite humorous.

By EricMartello on 7/29/2009 12:06:46 PM , Rating: 2

I can't believe I missed's the same material they spam in their canned responses.

Took me two minutes.. Its not up to Google to tell you how to improve your site, a few minutes of research would have explained everything.

Actually, it is up to them if they expect me to use their services and spend my money or my clients' money there (which I still do, but far from how it was before).

By Spivonious on 7/29/2009 9:19:49 AM , Rating: 2
Hopefully this exposes more people to the excellent technology behind Bing.

By nafhan on 7/29/2009 9:48:11 AM , Rating: 2
So... about that picture with the article. Are you guys subtly saying that Yahoo is f***ed?

If it can wipe Google's face on the floor...
By TheEinstein on 7/29/09, Rating: -1
By bupkus on 7/29/2009 2:08:13 AM , Rating: 2
Nor on technical forums.

"So, I think the same thing of the music industry. They can't say that they're losing money, you know what I'm saying. They just probably don't have the same surplus that they had." -- Wu-Tang Clan founder RZA

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