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Bing is the new Yahoo!: MS and Yahoo! reach deal

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  • Bing is the new Yahoo!: MS and Yahoo! reach deal

    Bing now has 30% of the search market to Google's 65%



    Yahoo to Lead Ad Sales in Microsoft Search Deal

    Online Ad Business Braces for Shakeup as Pact Gives Bing Nearly 30% of Market to Rival Google's 65%

    NEW YORK (AdAge.com) -- Microsoft and Yahoo tomorrow are expected to announce the search pact earlier reported by Advertising Age, a deal that will trigger a major re-ordering of the online ad business and create what they hope will be a more-credible competitor to Google.

    Through the pact, Bing will become the default search engine on Yahoo, creating a search player with close to 30% market share of search queries, compared with Google's 65%, according to ComScore data.

    One of the most interesting wrinkles involves who takes ownership of search sales: Yahoo is likely to take on exclusive representation of Bing inventory to eliminate channel conflict and complexity for advertisers, but not before both sides unwind the thousands of advertiser relationships and proprietary systems through which many large advertisers buy search ads. Microsoft's AdCenter is expected to be the sales-technology platform.

    It's an incredibly complex task, and individuals close to both sides say they have no reason to rush that aspect, especially because they expect some antitrust scrutiny from the Department of Justice, which could determine how that part of the deal is ultimately structured.

    Changing focus on both sides
    The deal will take Yahoo out of the search-technology business so it can focus on media, marketing services and sales. Microsoft, especially if it can cede search sales duties to Yahoo, becomes more of a technology and infrastructure company, its disciplines better aligned with its strengths. (It would still, however, have a massive global display-ad sales business.)

    In return, Yahoo will retain the ability to sell search and have access to an even bigger pool of search data that it can use to target users with display ads.

    Executives on both sides agree that the optimal structure for the deal would be to have one point of contact selling search inventory, but that will require restructuring vast departments with multiple heads at both Microsoft and Yahoo, which could take time.

    In addition, Microsoft in particular is very concerned about the Department of Justice's reaction to the deal and they may seek its blessing, much like Google attempted to do last year before it went forward with its proposed search deal with Yahoo. Unlike that Google-Yahoo deal, this Microsoft-Yahoo one appears to have broad support from advertisers, which have long argued that the market needs a second strong search player to foster competition.

    Microsoft executives are said to be concerned that behind-the-scenes lobbying by Google will sway regulators and could delay implementation of the deal for months. The irony here is that Microsoft was the main force lobbying against Google's attempt to do a search joint venture with Yahoo, as well as the force organizing advertiser opposition to the pact.

    Yahoo comes in with a larger share of the search business than Microsoft, but it doesn't have as much financial firepower as Google or Microsoft, and observers say it will have trouble defending its share without a deal. Microsoft, on the other hand, has a vast capacity to spend on search, but an unproven ability to take share from anyone but Yahoo. Yahoo declined to comment on the deal.
    "The issue is there are still many people out there that use religion as a crutch for bigotry and hate. Like Ben."
    Ben Kenobi: "That means I'm doing something right. "

  • #2
    Can we stop hearing rumblings about stupid, antiproductive google monopoly suits now?
    12-17-10 Mohamed Bouazizi NEVER FORGET
    Stadtluft Macht Frei
    Killing it is the new killing it
    Ultima Ratio Regum

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    • #3
      Second string, out of their mouth. Good for them.
      Life is not measured by the number of breaths you take, but by the moments that take your breath away.
      "Hating America is something best left to Mobius. He is an expert Yank hater.
      He also hates Texans and Australians, he does diversify." ~ Braindead

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      • #4
        Originally posted by KrazyHorse View Post
        Can we stop hearing rumblings about stupid, antiproductive google monopoly suits now?

        No. The EU will be heard, damnit!
        (\__/)
        (='.'=)
        (")_(") This is Bunny. Copy and paste bunny into your signature to help him gain world domination.

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        • #5
          The rumblings I've been hearing also come from the US
          12-17-10 Mohamed Bouazizi NEVER FORGET
          Stadtluft Macht Frei
          Killing it is the new killing it
          Ultima Ratio Regum

          Comment


          • #6
            That was just the Mexican food I ate last night. Sorry
            To us, it is the BEAST.

            Comment


            • #7
              The only thing I use Yahoo to search for is YahooMaps with the restaurant overlay on...
              Monkey!!!

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              • #8
                Originally posted by KrazyHorse View Post
                Can we stop hearing rumblings about stupid, antiproductive google monopoly suits now?
                No, we have to file anti-trust against any dominant tech company because unless we do, they'll never be usurped by new competitors!
                “I give you a new commandment, that you love one another. Just as I have loved you, you also should love one another. By this everyone will know that you are my disciples, if you have love for one another.”
                - John 13:34-35 (NRSV)

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                • #9
                  I don't think this will have much impact in the market place. The deal will not reverse the trend. Google looks like it is still gaining market share. Also, the 30% and dropping Yahoo-Bing market share is only in the US. Bing's combined share in most countries will be much smaller.
                  I came upon a barroom full of bad Salon pictures in which men with hats on the backs of their heads were wolfing food from a counter. It was the institution of the "free lunch" I had struck. You paid for a drink and got as much as you wanted to eat. For something less than a rupee a day a man can feed himself sumptuously in San Francisco, even though he be a bankrupt. Remember this if ever you are stranded in these parts. ~ Rudyard Kipling, 1891

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