Comments on: Microsoft to buy Yahoo: Redux. Ad Nauseam. http://www.searchmatters.net/2007/05/04/microsoft-to-buy-yahoo-redux-ad-nauseam/ Healthcare Search Marketing Newsletter for Catalyst Online Tue, 29 May 2007 12:38:11 +0000 http://wordpress.org/?v=2.1.3 By: Ehren http://www.searchmatters.net/2007/05/04/microsoft-to-buy-yahoo-redux-ad-nauseam/#comment-95 Ehren Fri, 04 May 2007 18:00:19 +0000 http://www.searchmatters.net/2007/05/04/microsoft-to-buy-yahoo-redux-ad-nauseam/#comment-95 The integration of Yahoo and MSN's paid search systems would effect a major shift in the paid search marketplace. Many advertisers work ONLY with Google, because the market share is so much larger than the second and third place market share holders. By joining forces and expanding the market share that a single campaign can reach, they have great potential to attract ad dollars away from Google. Even if they don't integrate their search engines anytime soon, they could integrate the paid search back end. That is, you could run a single paid search campaign with one interface, one account rep, and one invoicing system, but this campaign would run on both platforms. This would be akin to Yahoo adding MSN Live Search to its network of partner search engines. All the market share of running your paid search campaign on BOTH Yahoo and MSN, but without the additional labor that we currently have to expend in order to manage two separate campaigns. This would be very appealing to advertisers, and could be implemented long before most of their other services were integrated. The integration of Yahoo and MSN’s paid search systems would effect a major shift in the paid search marketplace. Many advertisers work ONLY with Google, because the market share is so much larger than the second and third place market share holders. By joining forces and expanding the market share that a single campaign can reach, they have great potential to attract ad dollars away from Google.

Even if they don’t integrate their search engines anytime soon, they could integrate the paid search back end. That is, you could run a single paid search campaign with one interface, one account rep, and one invoicing system, but this campaign would run on both platforms. This would be akin to Yahoo adding MSN Live Search to its network of partner search engines. All the market share of running your paid search campaign on BOTH Yahoo and MSN, but without the additional labor that we currently have to expend in order to manage two separate campaigns. This would be very appealing to advertisers, and could be implemented long before most of their other services were integrated.

]]> By: Sherwood http://www.searchmatters.net/2007/05/04/microsoft-to-buy-yahoo-redux-ad-nauseam/#comment-97 Sherwood Mon, 07 May 2007 15:07:05 +0000 http://www.searchmatters.net/2007/05/04/microsoft-to-buy-yahoo-redux-ad-nauseam/#comment-97 I don't think MS would spend $50 billion to pull-in a few extra merged accounts. It's interesting to look at both companies over the last couple years: - MSN built a backend from scratch (their first, actually) for both natural and paid search. It has basically had no effect - market share continues to slip. - Yahoo rebuilt its antiquated paid system with Panama, and market share continues to slip. - Both companies have had footholds in webmail, calendars, etc. since the late 90's, and now Google determines what is considered "competitive" in that market. $50 billion buys shareholder confidence, and the hope that a combined company can stop sliding downward. I have *no* idea why any shareholder would believe that logic, but I bet MS management is counting on it. I don’t think MS would spend $50 billion to pull-in a few extra merged accounts. It’s interesting to look at both companies over the last couple years:

- MSN built a backend from scratch (their first, actually) for both natural and paid search. It has basically had no effect - market share continues to slip.

- Yahoo rebuilt its antiquated paid system with Panama, and market share continues to slip.

- Both companies have had footholds in webmail, calendars, etc. since the late 90’s, and now Google determines what is considered “competitive” in that market.

$50 billion buys shareholder confidence, and the hope that a combined company can stop sliding downward.

I have *no* idea why any shareholder would believe that logic, but I bet MS management is counting on it.

]]> By: Francis http://www.searchmatters.net/2007/05/04/microsoft-to-buy-yahoo-redux-ad-nauseam/#comment-98 Francis Mon, 07 May 2007 15:16:51 +0000 http://www.searchmatters.net/2007/05/04/microsoft-to-buy-yahoo-redux-ad-nauseam/#comment-98 But... that's only further reason for Google to buy Yahoo, IMO. 50B is a lot of money, but to kill/absorb your biggest competitor would be seen as huge marketing win for Google and maybe even the coup de grâce for Microsoft as an online portal/search engine. Besides the obvious search engine market share, Google would instantly get [Yahoo's] shopping portal, the web builder, the personals, the communities, jobs, etc etc - all small units in and of themselves- but collectively, they amount to billions in revenue. I think Microsoft sees this and is worried. It's very similar to the the Adobe Macromedia merger. But… that’s only further reason for Google to buy Yahoo, IMO. 50B is a lot of money, but to kill/absorb your biggest competitor would be seen as huge marketing win for Google and maybe even the coup de grâce for Microsoft as an online portal/search engine.

Besides the obvious search engine market share, Google would instantly get [Yahoo’s] shopping portal, the web builder, the personals, the communities, jobs, etc etc - all small units in and of themselves- but collectively, they amount to billions in revenue. I think Microsoft sees this and is worried. It’s very similar to the the Adobe Macromedia merger.

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