More than a year ago, Microsoft and Yahoo had joined hands to come up with a strategy to take on Google. And finally after a long wait, this strategy is now revealed with Microsoft officially announcing last Tuesday that Bing is totally fueling Yahoo search results now.
The search integration is the result of a ten year deal, by virtue of which Yahoo gave up its own longstanding search technology to amalgamate Microsoft’s fairly new Bing search engine to power all searches on the various Yahoo sites. On the legal front, both the U.S. Department of Justice and the European Commission approved the search agreement earlier this year. Although it would take some time for the matrices to numbers to show how the duo is fairing against Google, it is evident that the launch was a positive start with confidence already seemed to built up among search marketers and advertisers.
Even amidst this hue and cry of the world tech-market flattering themselves at the news of Microsoft making alliances to crush Google, the statistics still show a different forecast. Just looking at last month (July) figures, one can point out that neither Bing nor Yahoo separately has had any luck cutting into Google’s lead in the search market so far. According to a market survey done by research company ComScore, Google had 65.8% of the search market under its control while Yahoo and Bing had only 17.1% 11% respectively.
However this is still something for Google to worry about. The reason being the fact that while the combined Microsoft and Yahoo search traffic is still significantly lowers than what Google drives; it’s much larger than the two had on their own. This gives Bing better numbers to show advertisers and a chance to cut into Google’s profits. Besides, for Google, search is the prime cash bearer that supports everything else they do. Microsoft’s situation and perspective is different -they have their existing software monopoly market to generate money. This will put more pressure on Google’s profitability over time.
Now one can imagine why, throughout the last one year, Google was found aggressively looking out to venture into other segments of the Market with their products and facilities.