Microsoft-Yahoo - Search Ads & SEO

Would Microsoft-Yahoo! Mean More Competition?

FEBRUARY 5, 2008

On the surface, Microsoft's $44 billion offer to acquire Yahoo! seems to simplify the US search market share race.

The combined firm would be second in online ad revenues to No.1 Google, and ahead of AOL. In 2007, Google rang up nearly $6 billion, while Yahoo! had about $3.4 billion and MSN had $1.4 billion net revenues.

The top four portals totaled $12.2 billion in online ad revenue for the year.
eMarketer's projections put this at more than half of the $21.4 billion market total.

For search ads in particular, Microsoft-Yahoo! would have roughly 18% market share of the search-based ad market, compared with 75% for Google, according to Sandeep Aggarwal, analyst at Oppenheimer & Co., as cited in a Wired article.

eMarketer put search advertising spending at more than $8.6 billion in 2007.

Read more in full article from eMarketer: Click Here

Regardless of the outcome no one can argue that even with Microsoft and Yahoo losing share 30% of the search market is nothing to frown about. Google's 65% of the search market drives much of the SEO (Search Engine Optimzation) and online advertising. According to eMarketer search ads will comprise 40% of the online advertising market for the next several years. Moreover, online advertising has been a bright spot of growth in an otherwise lackluster ad market.

How does this effect you? This doesn't mean run out and empty your marketing budget, but if you haven't yet thought about marketing your business online there is no better time to get your feet wet!