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Is Google Really Threatened By This Yahoo Microsoft Deal?

Or Will It Just Make Google Better?

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Are you tired of reading about the Microsoft Yahoo deal yet? Obviously not or you wouldn’t be reading this. There has been a whole lot of coverage to digest, and there will certainly be a whole lot more as the deal gets scrutinized and continues its journey to fruition.

Steve BallmerThere has been a lot of talk about the deal being bad for Yahoo and good for Microsoft. This may or may not be true, as it’s really way too early to tell for sure, but Microsoft CEO Steve Ballmer has been doing his best to try to convince people (mainly Yahoo shareholders) that Yahoo is in fact getting a good deal.

Yahoo’s shareholders of course didn’t see it that way, and Yahoo’s stock plummeted after the announcement of the deal. But that’s because "nobody gets it," according to Ballmer. Shareholders wanted cash, but Ballmer says they should be happy with the elimination of Yahoo’s search costs and the added advertisers that will surely come from the deal.

Others in the industry feel that Yahoo is simply making a big mistake by eliminating its own search business. Although there’s no denying that Bing has been building some buzz, and those pricey TV ads are helping to fuel that, but how many of the average Yahoo users will even care?

The ultimate question of this whole thing is will this really give Google significant competition in the search space? Again, it’s too early to truly tell, but my gut is telling me it’s not going to make an incredible difference.

If a typical Google user has tried Bing and decided to continue using Google as their primary search engine of choice, they’re not going to abandon it because Yahoo’s using it. Does it matter that much to Google if Yahoo users are using Bing? They were already using Yahoo over Google, so what’s the difference? 

Microsoft and Yahoo may get some more advertisers out of this with the combination of Bing and Yahoo making up a greater percentage of the search market share, but it’s not like its going to draw advertisers away from Google, which still controls an incredibly dominant amount of that market.

And let’s not overlook the fact that when something eye-catching occurs in the search industry, and Google’s not the one catching eyes, they are usually quick to counter with their own offerings (or at least acknowledge that they will be forthcoming). When Bing launched and started highlighting all of its "cool new features," Google was quick to add a link to its homepage highlighting some of its own "decision-engine-like features."

Google - Discover the Web

As some discussed back then (namely Danny Sullivan if I’m not mistaken), Bing’s launch merely highlighted some things you could do with a search engine that other search engines (like Google, and in some cases even Microsoft’s own Live Search) were already doing. Bing’s launch has been more about branding than anything (despite the fact that it does bring some new things to the table).

I could be incredibly wrong, but I just don’t see this partnership between Yahoo and Microsoft having a tremendous effect on Google. Many want to see more competition in the search industry, and that’s a good thing. Competition can only make the industry as a whole better.

But Google is so dominant for a reason. People like Google. Like I said when Bing launched, even if the competition offers a product that is just as good or even better in some ways, it’s going to take Google dropping the ball and driving people away on their end to make a significant impact on its share of the search market.

Google is so far ahead, and it has been for so long. Think about all of the products that Google users are already tied into from Gmail to Google Docs to AdWords to Google Calendar, etc. Google search is always right there. Users have a lot of their online lives invested in Google, and switching is probably asking a lot to most of them. Yes, you can use both Gmail and Bing, but it’s about convenience and familiarity.

Microsoft has done a very good job combating the branding issue that has held them down in the search market for so long though. Bing appears to be doing much better than Live Search from that standpoint. We’ll see what happens.

Does the Yahoo Microsoft deal mean real competition for Google? Is Google sweating? What do you think?

Is Google Really Threatened By This Yahoo Microsoft Deal?


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  • http://www.webcertain.com Andy Atkins-Krueger

    Chris,

    Your analysis makes perfect sense – apart from one aspect. Very few people are focusing on the international implications of the deal. Microsoft already has a connection with Baidu in China where a lot of its own development takes place. The deal between Yahoo and Microsoft makes it easier for Baidu to develop that partnership in China. The same could happen in other countries including Russia. And for that to take place, Microsoft needs Yahoo’s sales people.

    Added to that, Microsoft has a connection with Facebook which hasn’t yet been exploited – partly I suspect because they don’t feel they’re ready. So my view is that Microsoft is moving a great many chess pieces around the board – not just one or two. And I’d like to bet that within Google, they are very aware of that and planning their own moves too.

    The game isn’t over yet, it’s just beginning.

  • Guest

    There are too many people say the same thing. google share is so large, but no one has denied that google is no longer better than others. Bing particarly is better in many areas, come on, no just presentation.

    If your technology is not better, can you sit the position forever? no way. the competion has just started.

    • http://www.south-africa-website-design.com Msi Mzantsi

      I also find it amazing that a lot of contributors seem to be wishing for a failure of the competition that the Microsoft-Yahoo! partnership is going to pose to Google.

      Can you please guys wake up!

      Google dominance is NOT good for the internet – ask any website owner how much the cost of advertising on Adwords has increased over the years. Also ask any SEO expert how many times Google seem to lead website owners one way, and then suddenly change and come up with new rules.

      I use both Google and Yahoo! for advertising – what I have seen overtime is that if you want buyers you advertise on Yahoo!, whilst if you are looking for information seekers you use Google (Adwords). This is more so for Advertising targeting North America.

      So, Yahoo! plays a VERY IMPORTANT role in Internet Search Marketing as competition to Google. It will be a sad day therefore if the partnership between Microsoft and Yahoo! eventually leads to the demise of Yahoo! – as some “Doomsday Futurist” seem to think and wish!

      I wish the Microsoft-Yahoo! partnership all the best – it’s good for internet search competition. Every website owner should pray for its success!

  • http://www.huge-dildos.org huge

    The battle is not over. google has got 65% of the market share but I thing yahoo/ MCST will take over 5 % of this market share over 12 months

  • http://www.vinfotech.com/ Shailendra Sial

    The deal between Yahoo! and Microsoft is beneficial for Google. Since the launch of Bing, it has gained only 0.4% of market share which is not at all encouraging. Further, it would take 2 years for the deal to get fully functional. What will happen to the users of Yahoo! till then? Where will they go? I think the answer is Google. None of them can compete with Google in the search market and this deal has further eliminated a Google’s competitor i.e. Yahoo!

  • http://www.patrickmcmurray.com Patrick McMurray

    It’s something to write aboit

  • PW

    Yes, Google will loose a piece of the action. Yes, it will hurt the Google bottom line. No, it isn’t a major threat, at least not yet. Google needs to make some improvements, a few major ones and lots of minor ones, but it can successfully compete in the search engine marketplace. Google uses a different algorithm than Bing, so for some things, Google is better and for other things Bing is better.

    MS has been marketing Bing pretty heavily. As we all know, marketing wins market share. MS and Yahoo both are common household words and companies when speaking internet. Google is also very common as shown by their current market share.

    Over the course of the next few months, the jockeying for position will take place. I think that Google will keep the biggest share, at least for the short term (6 months to a year), but Bing will start biting off bigger chucks after that. The result may be that Google can maintain their lead, with innovations, but will loose it if they stay dormant.

  • http://www.americanindavao.com Bruce

    I think Google will still be GOD with search and adsense and microsoft will be GOD with Windows.

    Maybe Microsoft/yahoo can develop an AdSense program that does not kick out users for sneezing.

    I also think the Google operating system will not go, too many windows programs to make work.

  • http://cottagesfortwo.com Vik Sintus

    small publishers from arround the world will always keep google stay on top, through their adSense relationship.

  • MJ

    One competitor was just eliminated. Google will prevail.

  • http://www.squidoo.com/thegurudominationblueprint Guru Domination Blueprint

    I believe Google will remain the top dog in the search engine industry and will continue to dominate even if Microsoft and Yahoo merges.

  • Jim

    Google are the market leaders, and will remain so.

    MS is at present losing market share and needs a strong partner, they see this merge as a good input.
    I believe personally that Yahoo will, through the merge gain absolutly nothing! In fact MS will bring down Yahoo with them eventually.
    MS has today got strong competition, and their monopoly has gone THANKS TO THE LAW MAKERS!

    JIM

    • http://www.nurmanc4review.co.cc nurmanCKisser

      yups jim, i’d agree with your opinions

  • http://myprofile.cos.com/zurich Dr Paraki

    Hi Folks!
    How many of you have tasted McDonald’s Burger in India? You may be surprised to know McDonald’s is offering Veg Burgers with Paneer as a filling..!! I call it a terrific innovation and what if it dilutes McDonald’s Kentucky Brand Image and Equity.

    No that’s rocking…isn’t it?

    Google vs Microsoft-Yahoo Combination is something like McDonald’s Innovation in India and with time this search engine duel will fade away quietly.

    Who will have the last laugh? Obviously your neighbour. It is so simple to ask your neighbour the directions to Washington Dulles Airport if you are flying for the first time than sit and fret at your desk figuring out all the stuff.

    McDonalds obviously didn’t get the idea of using vegetarian Paneer as a filling for their Burgers from Google or Yahoo and i wonder if McDonald’s worried about shareholder reactions or brand dilution when they sacrificed decades old business practice for better consumer relations.

  • http://www.visualartprojects.com/ Alexander Sutulov

    In my opinion it’s pretty obvious we are witnessing once again the old battle between the practical predictable business oriented Microsoft World versus a concept of information access which privileges the individual nature. What is unpredictable about Google? Anything can happen! There is something very human about it which probably inferior-ates Tycoons who profit from human unwillingness.

  • Harry Cichy

    The move by Yahoo & Microsoft will be good for the market & Google and most of all the public, competion is good for the market, there is plenty of room for all, keeps all on their ‘Toes’.

  • http://www.coldoneinc.com Guest

    As a long time adwords PPC advertiser with Google, Yahoo! and MSN, and thus a contributor to Google’s top line, I am very encouraged by the Yahoo!-Microsoft

    Why? Well, Google has always been omnipotent with its serving of adwords and organic search engine results. Google proclaims the metrics changes they make, which can totally dismantle a working advertiser’s hard work in constructing a campaign, are for the benefit of the search user in providing them a ‘more relevant’ browsing experience.

    It’s a nice platitude but the reality was driven home to me recently. Google has made it difficult for me to advertise my brand name. The title, body, and url all contain my brand name, yet Google doesn’t serve the ads as they say the ads are “low quality”. In talking to Google, (which by the way is one way, in that they can call you, but you can’t call them) I was told that the serving of ads is not only for relevance reasons, but for the ultimate click through rate. In other words, Google’s top line is more important than the browsing user’s experience.

    Of the 3 ads which are served when my brand name is searched, 2 are Target and Amazon. If you click on the Target ad you arrive at a Target URL which has absolutely nothing to do with my product or even close similarity. Google says the high click rate, albeit not relevant URL, ranks high in their metrics and eventually searchers will quit clicking if it is not relevant. In whose lifetime?

    Yahoo! on the other hand is people/advertiser friendly. You can talk to a live person, they are willing to exchange dialogue to solve a problem or make an improvement that serves both the browsing experience and the advertiser, and they are being more competitive in their pricing, thus lowering advertiser conversion rates which is an incentive to place more ads on their platform.

    I have seen an ever increasing quantity of traffic coming into our website from Bing which combined with higher quality ads placed with Yahoo! makes me a happier advertiser as the higher quantity is also higher quality.

    Yes, Google is still King, but their Monarchy is being weakened and ultimately they will change in the face of advertiser/revenue competition or will face an Iranian type of revolt.

  • http://www.jaysonlinereviews.com jason

    Msn Yahoo Deal

    I agree competition is good for everyone pricing, getting better faster to keep up etc… Google will be king for a long time, but if msn or yahoo can gain 5-10 percent of the market share that would be huge for them. I personally would like to see the gap in market share tighten a bit but if it does i really don’t think it would be significant!

  • http://officialsafetyandsecurity.com Official Safety and Security

    Of course I use both Yahoo and Google to bring traffic to my safety and security web site so they’re both good but I think competition is a good thing. It produces a better product and keeps prices low. Thanks, Chris.

  • Dennis2009

    Google is not going to suffer from this too much. As it has been pointed out, people are tied to Google. The only thing that ties people to Bing-yahoo is possibly email.

    Now Google is upping the stakes with MS by trying to pull windows users away with gOS by tying it to Google’s widgets and apps… all of it free. Even if this does not pull many users away, the way Google would like it to, they are still the winners. Today as it stands internet users can use alot of software apps for free and if Google puts their finger in this growing pie…imagine the future. Loads of good software for free and all displaying Google ads.

    If anything I think Google will come away a big winner in the end and this Bling-Yahoo merger will be a small speed bump.

    That’s my two cents worth.

  • Guest

    I most likely will discontinue my ATT internet service that comes with Yahoo email.

  • Victor

    Google isn’t sweating…….. they are most likely laughing!!!!

    However, competition is a great thing!

  • http://www.iblogzone.com DiTesco

    Hardly, I would say. Although I would like very that they did. The reason for this is that they are so dominant in almost everything, as you very well mentioned, that without competition we would be pretty much in their hands. Not that this is bad, but the primary reason (I think) that Google keeps on innovating and launching new “stuff” is precisely to keep them ahead of the game. If they feel even a bit threatened by this Microhoo deal, good.

    Now and as far as the Microhoo deal is concerned, as you said, it is still too early to make any predictions. First they must seal the deal with regulators and then, we’ll see. Frankly speaking, this in my opinion is some sort of “It’s Now Or Never”. Either they succeed or it will be pretty much the end, specially for Yahoo. As I said before, we’ll see

    • Guest

      For sure, Microsoft will do as Google does, and will shave off the number of responses to any search in Bing, if it isn’t already doing so.
      Professionals use Yahoo because you get a deep number of replies that you can carefully search data from. In Google, they save mountains fo electricity by giving you only a few pages of replies THAT GOOGLE THINKS YOU WANT. It’s only about their money. Serious professionals researching use Yahoo precisely because you are not at the mercy of somebody’s bean counters. Lesson Learned? Nobody’s algo is as accurate as your own decision of what is important. For amateurs and people seeking the obvious answer, any decent algo will do. Mark this deal THE END OF PROFESSIONAL QUALITY WEB SEARCHES,unless you want to pay some company for their recreation of a decent Yahoo serch engine…and then all your personal information on your computer will be at THEIR MERCY, OF COURSE. Who will be watching you, then? Who knows! And you will pay them for doing it. Microsoft is licking their chops hoping no one will figure out this little point about yet another product launch still cooking, somewhere, on a slow fire, probably in Redmond, of course.

      • http://www.educationfound.com Guest

        Frankly I like google, yahoo, and hate bing. For one thing, they take a long time to crawl a new website. Secondly, they do not crawl dynamically generated pages (in google, you can submit a website map and they will crawl your page for you).

        When the yahoo search is going to bing, I am going to stop using yahoo and use google.

        I think the deal will benefit google more than msn or yahoo. many yahoo users who hated bing like myself will find themselves going to google instead, thereby consolidating google strength. Therefore the deal will likely benefit google more …

  • http://www.tuffykitty.net Tessa B. Dick

    Google is cutting its own throat by canceling Ad Sense members and keeping their earnings, with no good reason and no real appeal process. As one of the victims of their draconian policies, I will never search with Google again.
    ~~~

  • Guest

    I don’t use Google, and now I will no longer use Yahoo either. Microsoft does not need any more assets or control. I for one, have seen enough of this monopoly. Eventually there won’t be much of a choice left if companies keep giving in to Microsoft buying everything they can! Next thing you know, they’ll be selling you access to the internet!

  • http://g6xfu.myftp.org Guest

    It

  • http://www.wewebmagic.com Guest

    I liked Yahoo and stayed loyal to them but on principal will never use anything associated with Microsoft and Bill Gates.

    Microsoft represents everything I hate with it’s right wing puritan agenda I so sadly Yahoo must go.

    • Cliff

      Gates supported the Democratic Party in the last and only election where he declared. Try reading you might learn something.

  • JON

    Microsoft has always been about technology and not about people. They were born and bred in the nerdy flannel wearing engineering human-fobia corner of Seattle.

    Whereas Google, Macintosh, and Craigslist are all California based companies that have understood that with freedom comes success. Peoples choices will always render the best path in the evolutionary path of the superhighway. Giving users control is the way to stay in control. Not doing this will render you useless and out of control. It’s just that simple.

    The days of Microsoft control are numbered. I frankly don’t want anyone making a decision for me, especially Bing.

  • http://www.MehranHoodeh.com Mehran Hoodeh

    Google made the nightmare for Microsoft when they announced they’re going into developing their own Operating System.
    Well!
    They have the right to do that; (not making nightmares, I mean, but developing any software!!!!…) but, what Microsoft did due to that announcement was a bit silly, I believe. Choosing the partner could even be done more wisely.
    Perceptibly, Microsoft had felt a threat according to the Google’s movements and needed to do something against it. What if they had asked for joining the Google itself, to merge their power with themselves, emerging a more powerful software/internet giant to drive the technology even faster?
    Although it seems it could cost Microsoft more in the first place, but in long term, all could benefit from it, even Microsoft itself.

  • http://www.terapiasinteligentes.com Armando

    I do not think so; GOOGLE is strong enough and a self sustaining company. I rather believe YAHOO and Microsoft are the ones worry about Google becoming stronger day by day.

  • http://www.StevesAdultToyworld.com Steves AdultToyWorld

    we will have to wait and see i have an adwords account with google.com and yahoo search marketing for my online adult toy store google does have some faults like being slow to get your ads runnung i think maybe if msn merged with google it would be awesome then you could get 2 great search engines for 1 ad i hope it works great for yahoo and its employess and me now i get micro with yahoo with all my ads

  • http://golforbis.com Guest

    Google became a scary entity. they need some competition

  • http://www.google.co.uk Ahmad Arsad Bin Abdullah

    It will not affect google at all even google stll rank on 2nd.This merge between yahoo and msn certainly will bring up spaces for google to step in.The only thing will affect google if they close their adsense program.

  • http://www.1472herbal.com Gintak Gabui
        Is Google Really Threatened? No. Google is still a strong base company with a power full income stream.
        Yahoo + Microsoft? Great thing. Just wait and see what going to happened next. Its all about the $$$.$$
  • http://medianowonline.com/news Yusuf Kirmani

    Google has no immediate threat. Whta will be future course of action after this deal, one has to watch. Google is still very strong.

  • http://www.e-natureguide.com Jeff Patterson

    Maybe Google will not be threatened but I just spent another 3 days modifying my sites because Google has decided it does not like canonical naming in site maps, which all of a sudden has once again changed, if Google was not that concerned they would not be making so many changes to their algorithm, read the SEO boards, after Bing was announced, many rankings moved, dropped or became lost making many lose a bunch of money.

    It will be interesting to see the final outcome of all of this

    Jeff

  • Harry

    Google in my books is the best search engine

  • http://www.ronaldredito.org/ Ronald Redito

    Google has dominated the search engine industry and has even evolved as a Verb which meant to “search for something/meaning of”. It has beaten Yahoo who previously topped the industry and now has merged with MSN. It just mean an advantage for the Big G. It doesn’t matter if 2 big companies combined, what matters most is the quality of the search results. Compare search results of the top search engine, you’ll note the difference.

  • http://www.b-seenontop.com/ ShandE

    Not at all. I too noticed some Google ranking differences for a few days after the Bing announcement. Then things returned to “normal”. I agree with you Chris, search engines are like banks. I value my intellectual and financial investments and will only make a move when utterly disappointed.

  • http://www.piercedandmodified.co.uk Belly Bars

    Anything that means less reliance on Google is good in my book – I don’t think they have anything to worry about but I’d love it if they did.

    In my experience Bing results are much more relevant for all the search queries I need to do on a regular basis – especially recently Google has been totally unpredictable and everything is up in the air.

    I hate having to rely so heavily on what Google feels like doing with our website on any particular day

  • Cliff

    If the goal is more competition combinning two players only reduces the field by one. This ia a bad move for all of us.

  • http://www.merlinsltd.com Guest

    I could be incredibly wrong, but I just don’t see this partnership between Yahoo and Microsoft having a tremendous effect on Google. Many want to see more competition in the search industry, and that’s a good thing. Competition can only make the industry as a whole better.

  • http://www.xyshop.co.uk Tania

    I think it will make google better.

  • http://blog.businessathomeincome.com Dave Nettles

    Google itself is such a huge player I would not think so. When you see the hundreds and thousands of other search engines that have come and gone over the years. Today the household word around the world is googleit. It is not going to change very easy.

  • http://www.lyricandsubtitle.com Jason Titles

    Google is very strong …almost untouchable

  • http://www.homesolarpowersystems.org Home Solar Power Systems

    I have been using Google from the last 5 years and I find it is the best search engine! The fact is-Google has dominated the search engine industry. So I do not think this partnership between Yahoo and Microsoft will affect Google. But it is good and nice to see more competition in the search industry…

  • http://www.freewebs.com/amithist Amy Minckler

    since 1997 Microsoft likes to buy up the competition and ether absorb it or kill it outright. But in the surfing industry Google is the strongest one out there. Google is a new verb that has been added and touches everyone who is on the internet. no one actually Yahoos and MS isn’t even thought of when it comes to searches.

    I don’t see this as being a threat at all though i do think if they really do attempt this that Yahoo and MS will learn a very hard lesson about underestimating the competition just because they have more ego then business since.

    just my 2 cents

  • mano.saravanan

    You don’t think ” By this yahoo & msn deal, msn is going to get benefit and nothing will happen so…”. That deal is not for simply joining and to put scene. They will do something new and they will think to down google, i mean they will introduce some new features …

    • Guest

      ha..ha..ha… calm down mano, it’s making you look like u work for Microsoft or Yahoo!

      • Guest

        Oh, I agree with mano …. The ‘deal’ is a lot more than just search.. It’s about advertising….

        And what what chief executive Eric Schmidt is said to have called, “the next big one”: the $23bn a year market for online display advertising.

  • Guest

    Anyone noted that Balmer guy and Chris Crum has the same smile? Boy is he ugly… I mean Balmer!

  • http://www.vitaminpacknow.com vitamin

    it’s great for everyone here, google will probably get better,
    and that’s again great news for everyone

  • http://www.playingcardsandmore.com tom

    Google will remain “king of this hill”, I cannot see this new deal threatening them in any serious way.

  • http://www.google.com/profiles/jimisan.ppr Jimisan

    Google has dominated the Search Engine market just as MS has dominated the PC market. The MY deal will only cause a tiny dent to Google’s domination. Everybody’s is googling….it is a household name……deep rooted in our internet life.

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