Microsoft/Yahoo ‘Search Alliance’ Sprouts to Life
The Microsoft and Yahoo search deal, now being referred to as the ‘search alliance’ appears to finally be underway. In recent months, speculation has been focused on the regulatory approval required for the deal to move forward. With the recent regulatory approval, all attention is now focused on the integration of the two search engines. The big questions flying around are: when can we expect to see Bing search results on the Yahoo interface? What will this integration mean for advertisers? Can this partnership leverage some search market share from Google and form a significant alternative to the search giant?
In terms of a time line for this process, Shashi Seth, Sr. VP of Yahoo Search Products implied that it would be a long and slow integration that would not see any sudden switches, but more a gradual implementation of individual features throughout different phases. He mentioned that they would begin in the US (not surprisingly) and then apply the changes globally, with an estimated time of completion in 18-24 months. The first changes to be made are for the Bing algorithmic (natural search) results to begin appearing on Yahoo. Once Yahoo is happy with Bing’s organic results and can be sure of its quality/consistency, then they will begin to bring in the paid search results. In turn, Yahoo users in the US could see Bing results on Yahoo as soon as next week, whereas as European PPC advertisers may have to wait up to two whole years before they will see their AdCenter ads on Yahoo.
Which brings me to the next question that all online marketers are asking: what will this deal mean for advertisers? The first, and most obvious thing that comes to mind, is the fact that Microsoft AdCenter will take over as the management platform for all search campaigns. Although I have my issues with the AdCenter web UI, anything beats that of Yahoo. The next, and far more significant aspect, is the combined scale of the two search engines, which will give advertisers access to a global audience of nearly 577 million searchers. These volumes will speed up and enhance the optimisation process as well as provide more insights into search in general. One thing remains foggy though. Both companies are highlighting the fact that although the results will be the same, the interfaces and in effect, the search experience, will vary. So the question that remains is: With the same ads (or natural listings), for the same cost (or optimisation), surrounded by the same results, will one interface prove more effective for advertisers than the other?
When it comes to building a more solid competitor for Google, I think this deal will succeed over time. The deal plays to each company’s strengths, with Yahoo freed up to spend more time and money on their content network, and Microsoft given the scale and data to build their search product and advertising revenues. As PPC advertisers will now have a credible alternative for their advertising budgets, I would expect far more time and effort to go into running PPC campaigns through adCenter. Personally, Bing does not currently drive enough traffic for me to justify large amounts of time spent on its campaigns. With Google coming under attack for various reasons in all corners of the globe, the search world could provide a slippery slope once the ‘search alliance’ has iced over.
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