3 Reasons Google Should Fear Microsoft-Yahoo Partnership
Google Doesn't Market Itself
Google is one of those companies, like Starbucks, that doesn't do much consumer advertising. Why should they? When your company name is a worldwide verb, you don't exactly need to get the word out. But with the Microsoft-Yahoo partnership, the ground is starting to shift under Google.
The Bing ads have changed perceptions. They rather humorously portray Google's search results as a random collection of links, many of them useless. If anything, the ads have made people question, for probably the first time, whether Google's search is the best way.
The Time magazine story mentions that Google's search engine does have features that most users don't even know about such as providing "the local weather and movie times and performing currency conversions with a single search query."
With the Bing ads getting more prevalent and aggressive, Google may be forced into responding with ads that remind us why Google's search engine became so popular in the first place.
Google Depends Almost Solely on Search for Revenue
Online search advertising is Google's cash cow, responsible for nearly all -- 97 percent -- of the company's revenue, according to published reports. Microsoft-Yahoo is arguably the biggest threat to that revenue stream in Google's short but wildly successful history.
Just as Microsoft is diversifying beyond its cash cows -- Windows and Office -- Google is expanding to areas outside of search such as mobile (Android), browsers (Chrome), PCs (the upcoming Chrome OS) and productivity software (Google Apps). But all of these products are essentially a way to get more people searching the Web. It all comes back to online search ads.
Google is still the search king. Its 64.7 percent search market share is still dominant. But for the first time, Google's entire business is threatened by an ambitious, well-financed partnership bent on search success. Wouldn't you be nervous?
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