So after one of the worst wrong turns in corporate history, Yahoo has finally acceded to Microsoft by crawling into bed with the Bingmaker. In a nut, Microsoft will power Yahoo’s search engine and Yahoo will sell the ads globally.
Microsoft’s search market share will rise to around 21.5%, according to figures released by Hitwise last month, or roughly one quarter of Google’s share.
The deal lasts for 10 years, proving a little about my previous assertion that Microsoft is only five or so years into a 25-year search strategy. It is playing the long game, and this deal has solidified its position.
From where I’m sitting this signals three things:
- Yahoo has totally given up on proprietary search. It might become a media company after all.
- Microsoft has strengthened its hand and the deal should help prise further market share from Google.
- Advertisers may benefit in the long run.
But what do the search marketing professionals make of the deal? I’ve been asking a few questions, so let’s hear what they have to say…