Microsoft & Yahoo Strike a Deal
July 29, 2009
Search marketers are abuzz this morning with the news that perennial also-rans Microsoft and Yahoo have agreed to a 10-year deal that “will improve the Web search experience for users and advertisers, and deliver sustained innovation to the industry.”
Here’s the skinny on the deal:
- Microsoft’s “Decision Engine” (Bing) will replace Yahoo!’s search algorithm and power organic search results in both engines
- Microsoft will have full license to integrate Yahoo!’s search technology into it’s platform
- Microsoft Adcenter will be the paid search platform for most advertisers. “Premium” advertisers will be serviced by Yahoo!’s sales force
- “Yahoo! will innovate and “own” the user experience on Yahoo! properties, including the user experience for search, even though it will be powered by Microsoft technology.”
TwoTables’ take on it? We’ve long found Yahoo!’s products and service lacking so the fact that at some point we won’t have to deal with Yahoo! (“premium” advertisers, we’re not) brings smiles to our faces. Bing is new, however there is potential for it to develop into a decent search engine and as long as Yahoo! doesn’t “innovate” the user experience on their own portal too much, both Yahoo! and Bing users could see improvements. Will “Microo!” overtake Google as the search engine behemoth? Probably not.
There will be plenty of time to dissect what this means for all involved; the companies estimate that implementation will occur two years after regulatory approval. Read the full press release here.
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