Will Yahoo and Bing Search Partnership Supersede Google Search Results?

Yahoo Looses the Web War before it begins....

Microsoft Corp. (MSFT) and Yahoo Inc. (YHOO) Search Partnership bring Microsoft at forefront by making a roadmap to online search marketing. Yahoo empowers Bing by sharing its search for very limited gain. In this ten years term Yahoo will give up search technology development and abandon its research and development investment in the Panama ad system. Bing will gradually experience search share gain and eventually get into the search market and history will repeat as it happened for Google in 200-2004 search market share.




Are Google information seekers actual buyers of Google, I think MSN visitors are more Microsoft buyers. Google Monopoly is a challenge for Bing not for Yahoo as Yahoo will serve just as a channel till Bing gets good share of search. Microsoft will now power Yahoo Search! The two search forces have joined to dominate the online ad-market leader Google. The combination of Microsoft’s Bing search technology algorithm and Yahoo’s advertising sales force is indeed attractive for web surfers and advertisers. Yahoo is ready to give up its search power to its competitor Microsoft knowingly (Yahoo share in terms of branding, search and banner advertising is too much than Microsoft).

Yahoo no longer remains independant ruler of search engine advertising campaigns.

Quality and Relevancy remains two important search results criteria. Do users really experience any search difference with Bing and Google Search results??? It still remains a question mark since Bing was launched in May 2009, whether the Bing experience has translated users’ interest into genuine change in search behaviors. Microsoft search success will be only after it gains stability, stops dangling. Microsoft online advertising unit has not been profitable insipte of its effort for last two years. June 2009 Microsoft share jumps and swings high up to net gain of revenue. I am skeptical about how long Microsoft boost will last.

The pact is called win-win as both the companies are going to enjoy the benefits equally and improve the bottom line. But with the announcement of the pact Yahoo stock feel down and Microsoft saw uptick. Bing has raised Microsoft share market from 0.3 to 6.5% in June 2009 when all the major search engines including Google experienced a down month for Queries in June 2009. Microsoft rate of sponsored referrals also increase in June and yielded more paid clicks. I would say that transparent picture of Bing growth can be traced out only after Bing begins after Microsoft’s ad campaign wraps up.

Microsoft Bing and Yahoo Search Partnership was announced on Wednesday, 29th July 2009. Salient features of the search partnership are:

Microsoft will compete with Google by merging its market share in search advertising and search.

Microsoft acquires (presently for a decade) 10 years license to Yahoo search technology to power Yahoo search.

Yahoo search will have its own brand and interface but will have on its search results logo powered by Bing as the web search results will be based on Bing Algorithm. Looking back in the past Yahoo has relinquished its search business to Google from 200-2004 (search result powers by Google but search results were shown on Yahoo, using Google algo).Both the players will have their own branding, Yahoo in turn will attract advertisers.
Microsoft’s Bing will be the exclusive algorithmic search and paid search platform for Yahoo! sites. Yahoo! will continue to use its technology and data in other areas of its business such as enhancing display advertising technology.

Microsoft will pay high traffic aquisition cost (TAC) to Yahoo i.e. 88% of the revenue generated from the searches on Yahoo site, its own site for 5 years.

Microsoft gets the right to integrate into its search platform Yahoo search technology for ten years to improved its web search platforms.

Vision of pact is to generate quality product and equal win opportunities and benefits for both, ultimately improving the baseline of Microsoft and Yahoo.

By combining technology of both companies aim is to create a more viable search and advertising for advertisers.

Yahoo will just provide scale and advertising support to Bing by attracting advertisers as its search will be powered by Bing.

Pact covers data sharing, market migration to Bing, people migration to Microsoft, sgare customer data, but not complete web properties like product, emails, etc.

Full impolementation is expected to occur within 24 months after regulatory approval. Based on current figures Yahoo expects benefit to annual GAAP operating income of approximately $500 million and capital expenditure savings of approximately $200 million. Yahoo! also estimates that this agreement will provide a benefit to annual operating cash flow of approximately $275 million.

Predicated in long run yahoo will get good share of search ad revenues. It seems Yahoo will serve as an internet channel between Google and Bing. Combined Bing and Yahoo share will be very close to Google market share. But, once Microsoft gains market share Yahoo will loose its market share. Bing by becoming Yahoo search provider will take away a good traffic of Yahoo. Microdoft approx 8% share, Yahoo 20% share will sum up to 28% but still will remain away from Google 65% share. The Pact is to bring positive outcomes for both seekers but surely will be boon for Bing. Microsoft wants to drive Google traffic and Yahoo wants to build up media sites for all industry verticals. It is beginning and Search Advertiser Yahoo saw downtick in its share where as Software player Microsoft uptick in its stock and the Yahoo roll downs begins.

It is really unbelievable that a brand player, search advertiser leader Yahoo, just for sake of little money is ready to give up its crown. Yahoo has carved way for Bing Search.


In a nutshell, It is calculated that migration from Yahoo’s Panama ad system to Microsoft’s AdCenter platform will happen in 12 months after deal close was offcially announced by Carol Bartz.It is supposed that deal will close in early 2010 and then technology integeration will take another 12 to 24 months. So SEOs should start preparing from now. Microsoft and Yahoo officially announced the partnership/deal/pact finally on Wednesday, 29th July. These two eneterd the deal as Microsoft wants to capture the search market share of the search engine monopolist Google, both Micrisoft and Yahoo chase Google. The deal says Microsoft will power Yahoo search and the deal will add extra value to advertisers as well as web users. Yahoo CEO Carol Bartz and Microsoft CEO Steve Ballmer both spoke aboyt the strengenth they would gather after entering this pact. Chief Executive said Microsoft Bing will gather deep insight into search and this will give Bing a broader metrics to compete. Google still being the search dominant force with search market share of 70 percent, but this pact will surely increase Microsoft share to 30 percent.

I guess this pact is well thought of deal between search advertising leader Yahoo and software technology giant Microsoft. But, I am not sure that with closing of this deal will the two search and advertising market partners will really be able to capture visitors???

I am sure after 10 years when Yahoo will switch to its own search technology users would migrate to Bing, a superior search engine. Search war continues...

To know more about the benefits of Microsoft-Yahoo agreement, visit
http://www.choicevalueinnovation.com/thedeal/Default.aspx.

Rare Pictures...