MicroHoo: Does 1+1 really equal 3?

There are two things that make a search engine successful: quantity of traffic and the quantity of advertisers competing for the top spots and pushing up CPC’s. Currently, there is a great deal of industry speculation, which claims that, if Microsoft and Yahoo’s deal goes ahead, it could create a true competitor to Google in the search and advertising market. But is this really the case?

Yes, their traffic will be added together, but will they see higher CPCs through attracting more advertisers?

What support for the Microhoo deal says about Google

Not everyone is sure that the deal between Yahoo and Microsoft will work out the way Yahoo and Microsoft hope but by in large, advertisers and search marketers are excited about the deal.

While Google will still hold a dominant lead in the search market, Microhoo becomes a strong number two, something that should create more competition. As David Kenny of Publicis’ VivaKi told AdAge, “Anything that creates a credible platform and more innovation in search is going
to be good for consumers and, therefore, good for advertisers

Microhoo: WWUD? (what will users do?)

So they finally did it. The months of will-they-or-won’t-they dissolved into years before Microsoft and Yahoo finally forged a marriage, of sorts. Reams are being written about what the deal means for advertisers, for investors and for the companies themselves. Really, though, it all boils down to one question: what will users do?

Let’s say they do create a search engine that’s better than Google – way better than Google. Will it matter? Will users use it?