In HubSpot-approved Grateful Dead parlance, " What a long, strange trip it's been ." Just two years ago, Microsoft made a $45+ billion bid for Yahoo! but when the two business bemohoths couldn’t agree on a final price, the Redmond-based company withdrew their offer.
Yet, last week Yahoo said it would begin transitioning to Bing on the back end for search, noting that search results pages would display the line “Powered by Bing” at the bottom for searches using Microsoft’s results.To provide a bit of background on this endeavor, here is an overview of the Yahoo!/Bing deal from Search Alliance :
How Yahoo! and Microsoft will work together:
- Search ad inventory from Yahoo!, Microsoft and their respective partners will be combined into a new unified search marketplace.
- Microsoft will acquire an exclusive 10-year license to certain Yahoo! search technologies.
- Microsoft will manage the technology platforms that deliver the algorithmic (powered by Bing) and paid (powered by adCenter) search results.
- Full implementation of the terms of the Search Alliance is expected to occur within 24 months following regulatory clearance.
- Yahoo!’s Sales team will exclusively support high volume advertisers, SEO and SEM agencies, and resellers and their clients, and Microsoft will support self-service advertisers. In addition, Microsoft adCenter will be the platform for all search campaigns.
How Yahoo! and Microsoft will compete:
According to a recent report from comScore , a global leader of digital marketing intelligence, Google Sites accounted for 61.6 percent of total core search queries conducted in July, followed by Yahoo! Sites with 20.1 percent and Microsoft Sites with 12.6 percent. Ask Network captured 3.5 percent of total search queries, followed by AOL LLC with 2.2 percent.
- The Yahoo! and Microsoft Search Alliance does not include each company's display advertising, web properties and products, email, instant messaging, or any other aspect of the companies' businesses.
- Each company will maintain its own separate display advertising business and sales force.
- Yahoo! and Microsoft will innovate their own consumer search experiences to compete for search users and search queries.
- Yahoo! and Microsoft will service their respective publishers, also known as affiliate search partners.
- Yahoo! will continue to syndicate its existing search affiliate partnerships.
Marketing TakeawayMicrosoft Inc. now owns 28.1% of the search market and even though it represents a bit less than half of Google’s 65.8% share , the new Bing/Yahoo! search entity offers marketers a valuable SEO opportunity.