Microsoft and Yahoo Team Up To Challenge Google
Posted on by Ryan Deiss in Search Engine Optimization
It’s official!
Microsoft announced today that they have struck a deal to power Yahoo’s search, while at the same time Yahoo will be powering paid ads on Bing.com (Microsoft’s new search platform…formerly known as MSN).
You can get all the details here:
http://www.microsoft.com/Presspass/press/2009/jul09/07-29release.mspx
…and here:
http://www.choicevalueinnovation.com/thedeal/Default.aspx
So why is this good news for marketers?
It’s simple. With Yahoo and Microsoft now a team, Google finally has some competition in the search market. This means:
- Ad costs may go down, and…
- Google may stop being such enormous jerks to their advertisers (which could mean less “Google Slaps”)
Obviously this is just my speculation, and the deal doesn’t go final until 2010 so don’t expect anything to change overnight, but competition is (almost) always a good thing for consumers, so for now, at least, I’m chearing this deal.
Comment below and let me know what you think…
-Ryan
117 Responses to “Microsoft and Yahoo Team Up To Challenge Google”
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Sean Cavendish
29. Jul, 2009
Well, in theory it seems as though it would drive ad prices down — I see your point. However, I know that I won’t personally be using whatever Micro-hoo throws out there. I started using Google because it was became a better search experience than Yahoo, in my opinion. I also like it better than MSN or “Bing”. So why am I suddenly going to leave Google search when it’s still bringing the same, consistent quality it always has?
One other comment I’d like to make concerns your remark about Google’s “being such enormous jerks to their advertisers”. In a training I bought from you and Perry Belcher a couple of months back, you and he stated that everything Google makes its advertisers do is for their own good and helps their offer convert better — that the Google “slap” had actually improved the Internet marketing landscape.
I guess this seems a bit inconsistent to me, but maybe I’m misunderstanding you. Would you be kind enough to elaborate?
Thanks,
Sean
Nicholas Klein
29. Jul, 2009
Great post Ryan!
I’m not a big fan of MSN but this can only be good for competition.
Yahoo has been great to market on, so I am looking forward to this as an alternative to micro managing Adwords.
Nicholas
Bill Monks
29. Jul, 2009
Congrats Ryan for being the first IM to address this announcement. I subscribe to a ton of IM info and I had a pool with my staff as to who it would be. I guessed you and won.
David Bohmiller
29. Jul, 2009
It’ll be interesting to see what Google’s next move is in response to the competition.
I don’t see many initial problems from an internet marketing standpoint.
Either way, great luck everyone!!
Best,
David Bohmiller
MarketingSPY
29. Jul, 2009
I agree with Ryan.
Internet Marketers need an extra marketing outlet. The mobster, “Google” has been the giant for way to long and has bullied many of us for way too long. Sometimes, unnecessarily.
Let’s all keep positive thoughts concerning MS/Yahoo.
Good Luck Everyone!
Leo Saraceni
29. Jul, 2009
Yahoo and Microsoft have a lot of ground to cover if they want to even scratch Google’s 70% market share.
This wont affect paid search at all for at least 6 months, if so.
But hey, it’s a light at the end of tunnel for those who see Google as a the “Big Brother” of the internet.
Leo Saraceni
Rodney Daut
29. Jul, 2009
Ryan,
I don’t think this change will affect Google at all. Here’s why:
1. Google controls way too much of search to be bothered by even Yahoo and Microsoft combined. According to Hitwise in the last four weeks ending in June 28, 2009 Google had 69% of search. Yahoo had 19.6% and MSN 5.46%. So even with their combined search volume they are less than half of Google.
2. Google doesn’t make changes to be jerks to advertisers. Google makes changes in Adwords to serve their true customers better–searchers. Look at every change Google has made and it’s to make the ad program more useful to searchers. It’s not made to be more useful to anyone who wants to make a buck online. Google and their customers don’t owe us marketers anything. It’s our job to serve the customer (something Google likes) and be relevant and that eliminates MOST (but not all) of the headaches associated with slaps.
Just for a few examples:
Google used to allow multiple people to link to the same website with different Adwords accounts. So the top affiliate offer in a given area would have all the ads pointing to the same web page. Searchers didn’t like this. It was also bad for any new players that would try to enter a market.
If your ad got to few click throughs Google used to disable your access to that keyword because to them this was proof that your ad was irrelevant to searchers (and isn’t that true?) and anything irrelevant to searchers is bad for the integrity of search.
Eventually Google changed this policy and made you bid more for the same keywords which could lead to huge price increases for bids. However, this rarely effected good marketers.
I’m not saying Google is perfect. I’m sure many of us heard how your (Ryan Deiss’) pages were being slapped by Google with low quality scores apparently for no reason.
However, you can forget it if you think Google will try being nicer to marketers when it pays so well to do whatever it takes to be the best search engine around.
Rodney
Carl Watts
29. Jul, 2009
Competition is almost always good! I’m glad to see it happening!
Mike Maggs
29. Jul, 2009
On the surface this looks like a positive development because of the competition for Google. However, if Scott’s assertions are true then Bing will fall flat on it’s face. I’d like to think it’s all part of their learning curve, but they’d better get it straightened out quickly.
Russ Field
29. Jul, 2009
I love the fact that there will be more competition in the market place, hopefully it makes the number of fraudulent ads decline.
Alex Miller
29. Jul, 2009
Wow – this could be really cool. I too think that would decrease the costs on Google a little and yeh, I hope they start having a bit of respect and showing some gratitude to us how pay a tonne to them!
I’m sure you will Ryan but keep us informed.
Thanks,
Alex
Brad Spencer
29. Jul, 2009
I definitely think some competition in the search arena is a great thing. Yahoo used to be so much more amazing.
The nature of the business model of search is that it lends itself to a duopoly. Microsoft and Yahoo tried to always hit a homerun instead of incremental improvements like google.
I mean, people say “just google it” now so you know that Google is more dominant than most brands.
This might have an effect but I sincerely doubt Google will lower it’s market share. I just think the total search space is going to boom now.
Just wait til Web 3.0 when we, as consumers, completely determine search results rather than the spiders.
That day is coming!
Cheers,
Brad Spencer
Lee Dixon
29. Jul, 2009
Sounds like it’s going to be a positive thing – I hope! Microsoft have been stale in the marketplace for too long…. will be interesting to see how this pans out for sure!
James Dorans
29. Jul, 2009
I had issues like that to Scott Palat. Hopefully that does improve if they grab some stuff from Yahoo. They should because Yahoo brings more traffic and actually been in the game longer.
Robert Garcia
29. Jul, 2009
I think that the partnership between Yahoo and Microsoft is what Online Marketers need because Google has just gotten too big and they are basically making the rules when it comes to PPC or SEO so it’ll be nice to have another major player in the game.
Chester Roberts
29. Jul, 2009
It is nice to always get A Better Deal so hope that it is true Better Deals for everyone.YA Right Better Deals For Big Business.But There is Always HOPE FOR THE SMALL GUYS X-X Means Cross Your Fingers.GROOVY
Kyle Sozah
29. Jul, 2009
Google will scoop up Twitter now in a matter of months. You can see our videos about it on Youtube search “internettimemachine”.
Sean Mize
29. Jul, 2009
Ryan,
Yes, I am excited about this as well. The thing is, both Bing and Yahoo are excellent choices right now for PPC, and I think many marketers overlook them because of their (individually) seemingly small market share. But combined – they will equal nearly 1/3 of US search traffic – and I believe that is going to make PPC a great option for both newer and more experienced marketers.
Sean Mize
Randy Roedl
29. Jul, 2009
Great report on this! I think the competition is great… Keeps all of us and them Honest. Just frikin let us advertise and run a business!!
global man
29. Jul, 2009
You know what,
it is good that google is going
to have competition.
On the other hand, I personally
think that the “GOOGLE SLAPS”
are great!
That makes sure that all the “wana bes”
(thin affiliates), that care not
about HELPING people get what
they want…
are pushed out of the way leaving
room for the people that know what
they are doing…
and genuinely want to help
people find what they want.
GIVE PEOPLE WHAT THEY WANT
THEN IN TURN YOU WILL GET
WHAT YOU WANT!
Let’s not forget that people.
Tell me what you think about
that.
Carol
29. Jul, 2009
PPC costs are WAY too high, so anything that keeps prices down is GREAT news!
Saylor
29. Jul, 2009
I am so glad to hear that. I just had google charge me for an extra day, after I paused my campaigns. I have been communicating with them for several weeks now and have gotten nowhere with them. In the last email to them I told them I would not use Adwords again and I had no choice but to pay them since they were going to send my account to collections.
My plan was to start using Bing and Yahoo. Once this takes affect, it will be much simpler. I was so happy when I saw the report on the news this morning.
Lucas Adamski
29. Jul, 2009
GReat! Thats really good news.
I’m looking forward to see what microsoft and yahoo can come up with.
kelly
29. Jul, 2009
Sounds like a good thing, have to see, right. Funny, google is as smug about their business as many internet gurus are.
Allan
29. Jul, 2009
I think Google will lose if they Try to Please Marketers more that the Searchers.
Google should Team up with Apple
but what can they do together?
Jamel Gibbs
29. Jul, 2009
Great Post Ryan!
More Competition between the 2 means more money in our pockets because we’re going to spend less per click in advertising.
Keith Burke
29. Jul, 2009
Now we only have to optimize for two major search engines. I think it is great for the industry. Now, we have to see who will move in and take over the #3 spot as a major search engine. Google your move.
Harry Gililam
29. Jul, 2009
They may already be using Yahoo to serve the ads. I don’t wanna get too, but a product category, previously banned from both engines, now has ads showing up on both Yahoo and Bing. Meaning, they have either already synched their ad policies, and/or are already using Yahoo to serve some of Bing’s ads. It’s possible they have been working on the implementation of this for some time, prior to the announcement.
Affiliate Classroom Bonus
29. Jul, 2009
So true.
This competition can only help Slap Google.
They have become a little high an mighty.
Thanks, MSN/Yahoo
Scott Palat
29. Jul, 2009
Bing is the biggest joke of all!!
They won’t let me advertise on the word Math Tutor, because I don’t offer private tutoring. I offer online math tutoring. The problem is that very few people search for online math tutoring and the word math tutoring/tutor is more popular. This is why I advertise on that keyword.
They slapped me because they say I was not advertising on relevant terms.
What a joke! Good luck Yahoo dealing with that crap!
They slapped many of my other campaigns too and their interpretation of what I should be advertising on doesn’t lead to sales.
They should just tell me what terms I can advertise on instead of slapping me once I create the ads + relevant landing pages.
Jan
29. Jul, 2009
Nice! Maybe somehow the better converting microsoft and bigger traffic yahoo will enhance eachother! On the other hand, click prices might go up for Mahoo/Yasoft…I have no idea, but good to see some movement.
Tom Wells
29. Jul, 2009
I’ll be interested to hear more of your thoughts on this next week in Austin at the T&C Summit. I can’t wait!
Oskar Urbanski
29. Jul, 2009
I like collaboration, but only time will tell if this for one will fly, and how we can benefit. At least we can plan today to add this tomorrow and TEST for TRAFFIC
Cheers : )
Oskar
Mike Maunu
29. Jul, 2009
I definitely agree with the consensus. Google needs to know there are more places for us to advertise and get results.
Mike
John S. Rhodes
29. Jul, 2009
Someone actually told me they used Bing the other day. Then, I was further shocked when they said it was pretty good. But, when I asked them if they’d switch from Google to Bing, the answer was NO. Of course, it’s not an all-or-nothing game but switching is still a huge indicator of interested and potential.
Adrian Armstrong
29. Jul, 2009
That’s great news!! I totally agree, the competition will definitely be a good thing. Sounds like we’re in for some leaps in creativity as they start to battle it out.
Adrian
Jason Parker
29. Jul, 2009
Excellent news.
I was hoping somebody would come along and buck up to Google.
You’re right, good for us
Curt Snow
29. Jul, 2009
It’ll be interesting to see how this all plays out. Will it stop Google from being such jerks to Adwords advertisers? Hmm… I tend to doubt anything can stop them from being jerks. But time will tell
Mike
29. Jul, 2009
I think it’s one of the steps Yahoo made to survive. The share market changed since 2006 and Google has even bigger share right now. Microsoft is a company who has money .. a lot of money, and Yahoo will help them a lot in Fighting against Google. In my opinion “Bing” will become really big and the search results will be delivered to Yahoo searchers – it will help Bing growing there searchers list.
Full details of Yahoo Microsoft deal:
http://www.choicevalueinnovation.com
Joshua Valentine
29. Jul, 2009
Great post Ryan. What a truth competition is always good for the consumer.
Alex Poole
29. Jul, 2009
Great news. A decent competitor to Google in PPC *and* more eyeballs for easily grabbable SERPs. A real double whammy
Tom Justin
29. Jul, 2009
Hi Ryan,
You couldn’t be more right on. Completion of this magnitude is what Google needs for a dose of humility. When more of us give Yahoo at least piece of our business, they’ll start to get the message.
I’d also suggest that we write Google and state our discomfort with their practices and TELL them we’re going to start dividing our business. They’ll get the word faster and before diminished profits.
Tom Justin
Shannon Herod
29. Jul, 2009
I was stoked when I heard this! I am on the same page as you. This is definitely something that could make our ad bill go south. We will see.
Shannon
Garry
29. Jul, 2009
Chearing is spelt Cheering. Don’t you use spell check?
Mike O'Neil
29. Jul, 2009
I’m with you…I’m tiring of Google’s monopolistic and sometimes seemingly arbitrary ways.
That said, given how ugly a job both MSN and Yahoo have done with paid search, can their offspring be beautiful? The lack of customer understanding displayed by both boggles the mind given the enormity of the opportunity they have with online ad spending. Let’s hope they have learned and will give Google a run for their money.
Pol vanRhee
29. Jul, 2009
Competition always is good and especially for marketers. I think you’re right the full impact won’t really hit us until next year, but there will be some slow movements to combat this by Google. You’ll have to keep us all updated on what you see as the benefits as this goes along. It may also mean, though, that Google may try to close the net even more to shut out Bing
mjp
29. Jul, 2009
I heard a rumor of this a week or so ago… I have to agree with you I think it is great news for marketers… google was becoming much too omnipotent in my opinion… hopefully this balances the scales a bit…
Gary McCaffrey
29. Jul, 2009
PPC costs aside, this should give me a bump in traffic anyway as many of my sites do well in Bing but are nowhere in Yahoo.
This deal is definitely good news all round for marketers.
Matt Bacak
29. Jul, 2009
Great Post! I’ve been hearing alot of
positive things about this from my tech
guy and he’s not a big fan of Microsoft.
Matt
Desmond Ong
29. Jul, 2009
FINALLY HAPPENS!
Took Microsoft long enough for this deal. We can smell that Microsoft has always want a small piece of Yahoo!