Wednesday, July 29, 2009

Microsoft and Yahoo! Join Forces: So What's Next?

by J. Butler, Content Development Specialist

The big news in the air this week is the announcement of the 10-year merger of Microsoft's Bing search engine and Yahoo's premium search advertising tools. While rumors of this deal have been floating a long time, the official announcement unleashed a storm of web articles, blog entries and news stories.

Obviously, the people this affects most directly is the minority of users that still prefer Yahoo—roughly about 20% of the Internet community. And, it’s worth noting that in the span of time since the announcement was made, Yahoo’s stock plummeted—while Microsoft’s has stayed relatively untouched.

But the real question is-- how does this affect Search Engine Optimization campaigns currently underway? Here at Applecore, we’ve done our research and reached our own conclusions…

Is Google in Trouble?
Hardly. Google has been turned into its own verb, turning the search engine into a synonym for 'searching on the Internet.’ That kind of ingrained loyalty doesn't erode overnight. What early speculations suggest is that this could spark a competitive era the likes of which Google hasn’t yet seen: since it garners most of its revenue (up to 90%) from their search ads, any dent in their top dog market position could prove more harmful than it would have been a year ago. But a dent--rather than a wide-gaping hole--is all it would be.

Where’s My Data?
Does this merger affect the way the search data of users is used? Well, in a nutshell, not really. Smart consumers already know that “free” services—Facebook, Google or even social sharing sites—are never really “free.” Calling them low to no cost would be more accurate. Any search engine we use on the Internet is still, at the end of the day, a profitable enterprise. Whenever you use a search engine, assume that somehow, somewhere, it’s being looked at for potential revenue. But rather than be terrified of the implications of that statement, try seeing it as a great tool for your business.

Does This Affect My SEO Campaign?
The one thing this merger will definitely change will be all current Yahoo ranks and costs. Some speculate that since the cost of Google keywords can average 25% more than either Yahoo or Microsoft, the deal could create a tempting alternative for marketers hoping to lower their costs.

But at the end of the day, it's not because Google owns the greater market share that you pay for each click. Whether your budget is $5/day or $500/day, you won't get more than $5/day or $500/day worth of clicks regardless of market share. It's all relative, and still mostly unknown whether the deal will have any effect on PPC.


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It seems unlikely that Google could be usurped anytime soon, but for the first time in a long time, it may not be for lack of trying.

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