Archive for yahoo
I have been trying to avoid this issue for quite sometime. Although the impact of the two collaborating on search will affect the Web development and Web hosting world , it seems to me that there are quite a few pundits and journalists out the who have already covered this at length.
However, I think some of them are looking only at the service of the deal and not at the some of the additional benefits to Microsoft or Yahoo (especially Yahoo since their stocks plummeted).
Wall street was very disappointed with the deal since Yahoo doesn’t get any cash up front, but I think it should be known that Yahoo didn’t loose anything therefore didn’t really sell anything therefore not getting a paycheck at the beginning is inconsequential. What they received was a partnership with Microsoft. Microsoft will outsource their search engine and advertising technology to Yahoo. Microsoft gains additional traffic, Yahoo can free up resources for use elsewhere.
A bigger audience doesn’t just mean that Microsoft and Yahoo will gain money through advertising, what it also means is that Microsoft can garner valuable research and can even use Yahoo (or perhaps Bing since Bing will have the smaller audience) as a test bed for developing new search features. Realistically, Microsoft and Yahoo know that this deal won’t unseat Google as the number 1 search engine juggernaut, but what it does do is give both companies the ability to become more competitive down the road.
Yahoo, for instance, can take the money they were using before for search engine R&D and move it into developing tools, APIs, platforms for their user base, etc. Or, they could use that money to research a better search engine without being under the gun to release new updates to the public. 10 years down the road when the partnership ends Yahoo would then have a search engine platform with 10 years of R&D in it. They could also simply pocket the money, save on the expense to increase their profits.
This is not some scheme to try to get number 1 in search engines quick. This is a long term strategy for mutual improvement of two companies in hopes of the eventually unseating of Google as the king of search engines.
According to WebHosting.Info’s domain rankings Web hosting company 1&1 surpassed Yahoo as the fourth largest US web host based. 1&1 has labeled it an important milestone, after five years of business in the US.
Since their US inception 1&1, has been called one of the most aggressive web hosts, dramatically dropping standard industry prices. 1&1 was able to leverage economies of scale to offer their services and products across the globe in order to be competitive within the individual markets. This translated to substantial growth in the US market with more than 700,000 US customers to date.
Oliver Mauss, CEO of 1&1 Internet Inc., said, “We are thrilled with 1&1’s continued success in the US market, topping a giant like Yahoo only happens with true perseverance. When launching in the US we knew that becoming a leader in this industry would be no small feat, but we’ve tailored our services to deliver packages that allow individuals to achieve success on the Web.”
So I have been reading up on the Yahoo three month search retention policy and the fact that privacy groups are unimpressed and believe Yahoo is not doing enough to ensure our privacy is safeguarded.
All I can say is, give me a break. If we were truly concerned about our privacy we wouldn’t be dumping our lives on MySpace and Facebook; talking about our likes and dislikes on blogs and places like LiveJournal; moving from one site to the next without using an anonymous IP address; buying goods on the Internet; and while we are at it, if we truly wanted privacy we wouldn’t be on the Internet period.
As web site analytics becomes more advanced we are going to see even more problems with privacy.
So a search engine saves my searches, there are worse privacy infractions going everyday. Heck will the fact that Yahoo changes the search engine data after ninety days (I would suggest that they remove the IP address, seems logical, but people rarely are) cause me to embrace Yahoo has my new found search engine savior? Highly doubtful.
Call me a cynic, but I would like to open up the news and see, at least once, an article on a privacy group that has designed a way (software, hardware, a list of best practices, something) for people to remain private, if they want to be.
Regulators said no to the Google/Yahoo advertising deal. Yahoo now finds itself in a difficult position. If the ad merger had gone through, Yahoo would have plenty of extra money to be able to move forward with their business plans, however with the loss of that cash and the decline in the economy Yahoo finds itself in a bad position.
So much so that they are now trying to get MSN to put their buyout offer back on the table. Well as the saying goes there has never been a better time to buy. Yahoo’s shares are just under the $14 mark and Yahoo is in a vulnerable position.
According to the Nielsen NetRatings in August, Google owns 60.0% of the search engine traffic, Yahoo 18.1%, and MSN 10.7%. Last time I said this wouldn’t go through because of government involvement but now that I look at the numbers with fresh eyes, I am more inclined to believe this will go through just fine. 28.8%, though not too pretty for the handful of search engine portals that share 11.2% between them, it is viable enough to not be considered harmful for the market.
Although personally, I would not like to see Yahoo under Microsoft, I think it would be a pretty good deal for both. History in the search engine marketplace has shown that neither company has what it takes to take down Google or even hold a candle to them.
So What’s next?
Microsoft has the luxury of waiting. They can sit on this for a bit and see how far Yahoo’s value drops, the more it drops the more desperate Yahoo gets. I think that if Microsoft doesn’t make a move by the end of the month they will probably wait for next year late January/February.
So keep your eyes posted on this. My curiosity actually hopes they do buy them out just to see what will happen in the search engine arena. Will Microhoo find ways to increase their market share? Will Google find a means to beat down the two headed beast? Will coffee prices plunge? Stay tuned! Until next time, happy hosting.
With the EU looking to investigate the use of Google Adwords on Yahoo’s network in US and Canada the World Federation of Advertisers (WFA) has also presented the disagreements of various advertisers to the EU.
Although the deal would be isolated to the US and Canada, advertisers say it will have a global impact.
“We feel this deal between Google and Yahoo in North America will have a detrimental impact on how they compete with each other around the world — as they do today,” said WFA spokesperson Robert Dreblow.
This isn’t the first time advertisers disagreed about Google’s methods. The WFA was in staunch disapproval of the DoubleClick acquisition in 2007
Yahoo disagrees. “Although the World Federation of Advertisers did not seek any information from us about this agreement, we have made clear from the beginning that it will strengthen Yahoo’s competitive position in online advertising and will help to drive a more robust, higher-quality Yahoo marketplace for our advertisers, publishers and users,” said Yahoo spokesperson Tracy Schmaler. “Furthermore, advertiser demand will continue to drive prices — up or down — and advertising performance will drive that demand, not collaboration between Yahoo and Google.”
The major reason behind the disagreement stems from the amount of the PPC online advertising market that Google would control through Yahoo. Attorneys from both the US Association of National Advertisers and Microsoft have found that Google would control 90% of the PPC market. Microsoft’s attorneys testified before the US Congress in July that no single company has every controlled 90% of advertising in any market.