Microsoft-Yahoo!: Consolidation in the Search Business

The long-delayed partnership between Microsoft and Yahoo! is now a reality and this could mean one thing: it’s now a virtual two-man race in the search business.

This partnership between the two online giants would now have approximately 30% of the search engine market. The Microsoft-Yahoo two-headed monster is now pitting itself against the dominant force in the field– Google.

It’s pretty clear from the deal what both parties are getting: Microsoft is trying its darned best to make a dent in Google’s search business and Yahoo is in need of a big jolt to make up for its recent misfortunes (The company took a beating since rejecting Microsoft’s acquisitionn bid last year). Yahoo! Search will be powered by Bing and the company will be selling ads for the Redmond-based Microsoft.

From the customer point of view, it’s not much of a difference as Yahoo has never been known as a search company but a content-oriented company. Placing “Powered by Microsoft Bing” on the search pages will have little effect on the user experience as both Yahoo and Bing have emulated the look and feel of Google’s search engine result pages (SERPs).

If you ask me, Search Engine Optimization folks are probably the most affected by this development. Reducing the Google-Yahoo-Bing trinity into a Google-versus-Bing means less sites to optimize for, and this could result in easier work and fewer projects.

  • Wow! Finally Microsoft has reached a deal Yahoo for an internet search partnership. Will the newly announced deal between giants Microsoft and Yahoo be a good thing? Got to wait and see. But atleast Microsoft and Yahoo deal is straightforward and not complex at all and ofcourse, the negotiation talks have been going for long. I was just curious to know all the past negotiations between Microsoft and Yahoo so collected all the articles and links (more than 200) related to the current merger and the previous events or negotiations between Microsoft and Yahoo. If you are interested check the link below.
    http://markthispage.blogspot.com/2009/07/saga-o

  • however hard they try , they will never knock google off their throne. This deal has been ongoing for about 2 years and has now only been concluded because Jerry Yang the founder of Yahoo has moved away from the board. It is said that with him at the helm he was too personally involved and emotions let him not say yes to the deal. Msn's new search Bing.com so far is pretty good and has promise

  • ia

    As an SEO I welcome this move. Google could use some better competition to keep them honest and if there end up being only 2 main search engines it will make my life easier:)

  • designquotes

    > If you ask me, Search Engine Optimization folks are probably the most affected by this development. Reducing the Google-Yahoo-Bing trinity into a Google-versus-Bing means less sites to optimize for, and this could result in easier work and fewer projects.

    I don't think so really, most people optimize for Google as it has major share and ranking in yahoo and Bing take care of itself.

  • carlcaroll

    As an adwords user, I think this is a great idea. Sometimes. it's hard to keep up my campaigns in the three different search engines under control

  • organicskincare

    I am glad to see them at least trying to compete with Google – the competition will make both se's better. I am impressed with bing so far. I will now be allocating more of my PPC budget to bing – it's more affordable to rank for keywords than it is with Google. I'll gladly take the top spots, regardless if bing “only” has 30% of the se volume.

  • Certainly this looks rather intriguing, are they are going to merge their systems? be difficult to then split it when they demerge!

  • Wonder if they will keep all their employees? I know Yahoo were laying off staff a while back..

  • Bing requires standard SEO of a site's pages – and most importantly the target keyword phrase in the URL – e.g. keywordphrase.com

    One of my blog sites is #4 on Bing, and yes the target keyword phrase is the URL:

  • moodle

    I've followed the microsoft-yahoo saga with great curiosity. Hopefully the consolidation of the two will ultimately mean better quality search engine and related services to the end-user.

  • I am not that happy about this merge. In a sense it's good because it simplifies everything. However, I think my cost for my campaigns will go up. For example, right now I am paying less for the same campaign in Microsoft that I am doing at Yahoo. I imagine that after the merge, I will be paying Yahoo's prices even for Microsoft's searches.

  • This is big news. The cultures at the two companies seem to be so different. It will be interesting to see how this develops.

  • I think It's big partnership in internet search business till date.This means that now its more difficult for Google to keep its business as it is.Google have to improve its services.I am agree with you that seo projects will reduce.

  • papa2can

    Should be very interesting to see how this shakes out.

  • ziggy1

    Competition in any type of business is a good thing. With the recent merge between Yahoo and Microsoft, getting 30% of the research market become very interesting for any internet marketers.

    Everybody wants to rank well in Google and I'm no different but at 30% of the shares, ranking well in Bing becomes suddendly quite appealing.

  • It looks like MS is trying anything they can to earn money, since Windows seems to lose it's influence. If you ask me, Windows Vista, should be renamed Windows FIASCO.

  • Well, some people may think it was just time to give some competition to Google, but as our alternatives have decreased, it could also mean less originality, less features. It's now a Duopoly, so to speak.

  • Well, some people may think it was just time to give some competition to Google, but as our alternatives have decreased, it could also mean less originality, less features. It's now a Duopoly, so to speak.

  • rob

    wow nice tutorial – thanks for sharing! – website design company

  • This is a sign of things to come. It will come down to 2 choices in everything. The big guys grow bigger, and the smaller things crash and burn.