Bing to power Yahoo!

by Ron Kunitzky July 28th, 2009 

Lots of talk the last couple of days regarding the proposed partnership where Bing (Microsoft) will be powering the search results and advertising at Yahoo! There are mixed opinions about this – many support it, but the question is why would you support it or why would you not and does it really matter? Once the partnership takes shape, we will finally have a solid number two (2) player behind Google with Yahoo! making up approx. 30% of the global search market. The rumor is that Yahoo! and Bing could be announcing their agreement and the terms of that agreement as early as later on this week….Is having a solid number two (2) player a good thing? Perhaps…Google has dominated paid search and pure search for so long now – at least as far as most people can remember. What got Google there and keeps them at number one (1) for so long now is their distribution partnerships throughout the web, their availability and applications built in on smart phones and their brand name – think "I will Google it". That has made it hard for Bing (Microsoft) to grow their market share which is why the deal with Yahoo! is so important to their growth strategy.

Like any online medium (or traditional medium), it's about your reach and the size of your network at the end of the day – without it, you simply can't move on. What Bing will have to do beyond powering search for Yahoo! is to get in to a position where they can actually challenge Google for the number one (1) spot in the space is grow their distribution, create unique apps and even steal certain key partnerships that Google benefits from and displace them as the key search provider.

Search was once a very competitive space. You had hundreds of pure engines, many meta-search engines and several pay per click engines all competing for a slice of the pie. Google somehow emerged from the bunch and took it all over because of their ability to distribute their products and monetize users – what remains to be seen is if Bing can truly challenge Google if not displace them altogether. That is no easy task and I would not bet on that happening anytime soon.

Ron Kunitzky

Ron Kunitzky, an expert in strategic business affiliations and partnerships is the founder of Geyser Marketing Group, and has successfully brokered partnership marketing programs for companies as varied as Coastal Contacts, Dell Computer, NASDAQ, and 1-800-GOT-JUNK?

Geyser Marketing Group

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7 Responses to “Bing to power Yahoo!”

  1. Henrik B says:

    This will be very healthy for the industry, I am sure. Google is too dominating; we need some good old competition.

  2. Arnie K says:

    It's hard to get too excited (or upset) at this point since the result is a long ways away…

    "The deal isn't expected to close until early next year, and then it could take another two years before all the pieces of the partnership are in place. The companies first will give antitrust regulators time to review the possible effects on the Internet ad market. Then they will need time to stitch together their different technologies."

  3. Hi Ron, totally agree that competition is just what the search marketing industry needs. I wrote a piece on this for the ecommerce times in January predicting that we could see a merger like this at some point this year.

    http://www.ecommercetimes.com/story/65770.html

    This will finally give all us SEOs some real work to do now! ;-) I can already hear the client calls for Bing/Yahoo optimization. "Yes, I know that we are #1 in Google for 'coffee' but why are we #11 in Binghoo!?!?"

  4. Liza says:

    This could be a really great thing, but right now I'm just not getting excited. It could literally turn out very good or VERY bad.

  5. Binghoo?! Yabing? Yaboo? Yabingoo! Anyway you put it, they are definitely going to need to create their own ranking system. Probably stars instead of numbers. Keep apples and oranges away from each other.

  6. Kunnu Singh says:

    yeah! its true and i think after few years bing become a popular search engine.

  7. "does it really matter?"

    Nope, will still use Google