Enough of monopoly, Google!
By Daniel at 29 July, 2009, 11:58 am
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“At the same time, Yahoo and Microsoft hope their partnership will help them better compete against Google Inc. , the 800-pound gorilla of the search-advertising market. Google controls as much as 65% of the U.S. market and up to 90% internationally.”
I am not sure if I would like a regulation of Google, but I hope that someone can offer a serious alternative soon. Having a mediator for the entire Web isn’t possible for the long run for other business. The web needs competition as well as others.
Business, webmasters, publishers, and advertisers all are hoping for an alternative that is able to rival Google in online ads market. People certainly don’t like to spend 75cents of every dollar on the web into one company’s hand.
What could be Microsoft’s next move to rival Google?
Google Adwords + Adsense + 75% Search Market Share = Monopoly. This is where Microsoft is going to take on Google. Microsoft throws its own challenger to Google AdSense.
“Following private tests that have been running for a long time, the software major is all set to release its pubCenter to beta testers in the US. The senior product marketing manager for Microsoft, Kevin McCabe called this beta service a great opportunity for site owners who want to shape an alternative contextual advertising product that will serve their needs better.”
The primary complaint about AdSense has been the lack of information from Google on how it divvies up profits and the sometimes frighteningly small revenue share that it produces for sites running AdSense.
Update: Microsoft-Yahoo Deal Release here.
Microsoft’s AdCenter and Bing vs Google
* Bing will become the default search engine on Yahoo. Fine.
* Yahoo is likely to take on exclusive representation of Bing inventory to eliminate channel conflict and complexity for advertisers, but not before both sides unwind the thousands of advertiser relationships and proprietary systems through which many large advertisers buy search ads.
* Microsoft’s AdCenter is expected to be the sales-technology platform. So Yahoo’s sales force is responsible for sales and execution but they’ll be using Microsoft’s technology platform to do it. Add another couple of months. (What if the tech platform doesn’t work right? Who will Yahoo’s salespeople yell at? How will Microsoft’s engineers feel when they’re yelled at by Yahoo’s ad salespeople? How quickly will they demand to be transferred to another Microsoft division, one where developers don’t have to answer to Yahoo salespeople?)
…And Microsoft Pubcenter
Microsoft is sure to have recognized this problem and it wouldn’t be unheard of for them to launch their own PPC syndication program somewhere down the line. With pockets deeper than Google can even imagine, Microsoft could offer a revenue share that is two, three, even four times higher than that of Google, thus prompting thousands of Web site owners to ditch AdSense in favor of a Microsoft based advertising partnership. The loss of profits that would be associated with a mass exodus of AdSense partners could have a strong impact on Google.
….Lawsuit is coming from the Europeans
I smell another lawsuit coming from the Europeans over the monopolistic behavior of Google, given that Google has 90% of the search advertizing market overseas, meaning Europe and everywhere other than the US. Microsoft knows this behavior all too well, and it’s paid off handsomely for the European regulators.
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