Search Is A Great Business For Microsoft

    February 7, 2005

Todd Bishop of wrote a good article explaining that the launch of MSN Search was the official beginning of Microsoft’s bid to topple Google and Yahoo.

“Microsoft’s launch of a new Web search engine last week marked the official beginning of its bid to topple Yahoo! and Google from their positions atop the industry.”

Todd goes on to illustrate the growing economic value of search to Microsoft even if it remains the number three engine.

“But beyond the battle for dominance, Microsoft’s search initiative comes with some practical benefits that promise to help the company’s business even if its retooled MSN Search service doesn’t ultimately emerge as No. 1 in market share.

One of the biggest is advertising revenue. Internet search engines have become large sources of it for Microsoft and other companies, primarily through the keyword-based ads that advertisers pay to place above or alongside standard results.”

Included in the article is a chart showing that in the 4th quarter of 2004 advertising revenue was 56% of Microsoft’s MSN divisions total revenue. attributes this to search revenue growth.

Click here to see the chart.

Rich Ord is the CEO of iEntry, Inc. which publishes over 200 websites and email newsletters.

Rich also publishes his blog WebProBlog which focuses on internet business and marketing trends.