Yahoo and Microsoft sealed a deal to collaborate on search and fight together against Google. You can read everything about it on the following site.
The news is official since yesterday, but was expected since quite some time.
What does this mean for Microsoft, for Yahoo, for Google, for advertisers and for us?
For Microsoft it means that they increase their market share in the search market. In June 2009, Google had over 81% of the search market; Yahoo had over 9% and Bing over 5%, so this means that together they have nearly 15% market share, which starts to be interesting. Some projections say that the market share may rise till around 21,5%, which is ¼ of Google. This starts to be interesting as they will be a real challenger. The challenge still consists in gaining awareness and change people’s minds to stop googling and start binging instead.
For Yahoo, it means that will be able to concentrate on what they’ve become, namely a media / content company. They will no longer invest in their search engine and thus, save some money to do different things. Let’s wait and see what innovations they’ll bring in the next couple of months.
For Google, it means that they potentially might lose big time, since I can’t believe advertisers will increase their already ridiculously high search budgets.
Next to the potential decrease in budgets, they will have to change their mindset. This might be, in my opinion, the hardest thing to do, as they come from a monopoly to an oligopoly. Their “truth” will no longer be taken for granted and might be challenged.
And finally, Google will probably need to prove why they are the leader, so innovate. This is what they do best, but they seem to have lost some speed as Bing already offers some sort of real time search (via Twitter).
For advertisers, it means that there is some real competition. Competition is always interesting, especially in those difficult times, it’s always interesting to save some money where possible. Not only the CPC might decrease because of this competition, but advertisers will be able to officially snob Google and their arrogance and spend their money better.
For us, well … you, well … them, well … anyone, well … you know what I mean, I’m talking about the end user! Not sure if it will change much in the first time, an end user will not change his default search engine / homepage because 2 challengers start working together. He / you / them … will probably not even notice anything for quite some time. Maybe his habits might change over time if Bing manages to create the awareness and break the user habits.
If you want some reactions from the experts check it out here