Ferdie Bester
Ferdie Bester

What the Yahoo-Microsoft deal means

Yahoo and Microsoft concluded an agreement last week that will see Bing, Microsoft’s search engine, used on Yahoo. This effectively creates a new rival to Google, the search-engine giant.

How does this affect us?

Locally Bing has an estimated search market share of 4% and Yahoo 2%. Their combined market share of 6% is still way behind Google’s 92%.

But a major benefit for us is that Bing allows users to limit searches to South African websites. This will deliver improved local search results which were previously only possible with Google. If you can’t find what you’re looking for on Google, you now have an alternative. We’ve seen the traffic from Bing on our client websites increase due to this improved functionality.

The new competition will also fuel further innovation and improvements to Google and Bing which should result in improved user experience.

Benefit for local advertisers

From an advertiser’s perspective, Bing is good news because Google was the only real search engine with enough volume to run a campaign.

If Bing increases its local market share to about 15% it’ll provide an alternative to Google with a lower cost per click which could save advertisers money.

Final thought

I believe competition is good in any market and this agreement plays to Microsoft and Yahoo’s strengths. Microsoft — with its search technology — and Yahoo have a formidable advertiser base and advertising sales team.

Yahoo has lacked strategic direction for a number of years and is now finally moving forward while Microsoft now has a platform to compete directly with Google.

Let the games begin!

  • http://trustedsiteview.com daniel

    Very good analysis. I love reducing of advert cost. Some analysis I’ve made using both search engine :

    Spam warning : No
    Features : Decision engine, thumbnails and instant answers.
    categorized searches : yes
    caches : yes

    Google :
    Spam warning : Yes
    Features : custom searches and analytic
    categorized searches : Yes
    caches : Yes
    At the moment is the best. However, Google may do something to counter Microsoft-Yahoo deals, I thought. we wait and see… Hope it will benefits all internet user.

  • Mockneck Phil

    I don’t care about the details of the deal. I can already search on Yahoo and Bing at the same time. It’s called http://www.infospace.com. You also get Google and Ask as well as Twitter.

  • pete ess

    This is not a high-tech opinion, just a human gutfeel one. Google flew because we LIKED what they were about and what they were doing. Microsoft is trying to BUY more power (like, they don’t have enough). I don’t see anything exciting or fun (or even efficient) coming out of this, so you won’t find me searching on Bing. Sadly low-tech, innit?