Search Engine Marketing News
Is Yahoo-Microsoft Ready to Challenge Google? |
7 Aug 2009 |
Finally a deal is made - after one and half year of speculation, the industry witnesses an engagement between Microsoft and Yahoo on search engine business, aspiring to take over the marketplace which is overwhelmingly dominated by the market leader Google. However, the engagement is doomed by uncertainty - whether the deal can reach a concrete end is yet to be testified by the federal antitrust law.
The 'Microhoo' talk - that's how they call it - started more than one year ago but unfortunately it did not go smooth on the money issue. However, the recent new deal has successfully made both sides of the table happy. While Yahoo agrees to sell its search engine expertise to Microsoft, Yahoo will be the premium sales force of search ad for Microsoft and itself.
There are still 3.5 months to go before the federal government decides whether to pass the acquisition or not. The concerned worried that with each oligopolist gaining a larger market share the online ad pricing will be forced upward because of reduced competition. Nevertheless, it is also argued that producing a tighter competition will push the market leader to make more competitive innovation to deal with the challenges in the market.
One major challenge that "Microhoo" will face is the habit of search engine users. How to switch users' habit from using Google search to Microsoft search engine? The Google supporters do not only favor their search function, but its other innovative inventions as well like Google Map or the highly acclaimed Gmail. It will be a long expedition before the new market player can shift audience away from a well-stretched online kingdom.
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