Got Ads?
2/20/2008
  How Yahoo / Microsoft Actually Makes Sense

There's a lot of press out there predicting that the incipient Microsoft takeover of Yahoo is doomed to fail. It's the dominant meme.

However, one set of potential users is rooting for it: People who buy search ads.

Andrew Goodman estimates at the London SES conference, attendees are for the merger at a 7-to-1 ratio.

When you look at it, it makes sense, and I've highlighted the key reason before:

Google market share in search is something like 60-65%, and in Europe, it's higher.

Yahoo's share is currently around 25%, and Microsoft is about 10%.

Put together Microsoft and Yahoo, and you have a decent #2 at 35% share.

Simply put, PPC buyers want to go to fewer places, and want a more viable alternative to Google.

Microsoft could throw away most of Yahoo, except Mail and the front page, and have hopes to turn this acquisition into something useful - simply because search is where the money is! Sure it's expensive just to compete with Google in search, but when you are Microsoft, you need to protect your cash cows from incursion by Google.

I think Ballmer's best option and natural tendency is to go after Google's cash cow. Yahoo's really the only way to do that.

I'm still pretty sure Microsoft's current management isn't the team to do it, but at least you can understand why it makes sense from a PPC buyer point of view.

Labels: , ,

 


Links to this post:

Create a Link



<< Home

Subscribe to GotAds?



Links



Recent Posts

How Yahoo / Microsoft Actually Makes Sense


Archives

February 2005 /  March 2005 /  April 2005 /  May 2005 /  June 2005 /  July 2005 /  August 2005 /  September 2005 /  October 2005 /  November 2005 /  December 2005 /  January 2006 /  February 2006 /  March 2006 /  April 2006 /  May 2006 /  June 2006 /  July 2006 /  August 2006 /  September 2006 /  October 2006 /  November 2006 /  December 2006 /  January 2007 /  February 2007 /  March 2007 /  April 2007 /  May 2007 /  June 2007 /  July 2007 /  August 2007 /  September 2007 /  October 2007 /  November 2007 /  December 2007 /  January 2008 /  February 2008 /  March 2008 /  April 2008 /  May 2008 /  June 2008 /  July 2008 /  August 2008 /  September 2008 /  November 2008 /  December 2008 /  January 2009 /  March 2009 /