The Battle for Search Supremacy – Google vs Microsoft – Round 3
A little over 12 months ago, I started a series of posts looking at the search engine war between Google & Microsoft (see part 1 here and part 2 here). When we last left the action, the proposed Yahoo-MSN merger had fallen through, and Yahoo had subsequently signed an $800 million search marketing deal with Google which would have seen Google Ads displayed in Yahoo search results. At the time I claimed that this may have been the death knell for Yahoo! Search Marketing but since then the proposed arrangement was abandoned by Google after it ran into complications with US anti-trust regulators.
The last few months has subsequently seen Yahoo and Microsoft enter into a new deal that will see Yahoo’s Search Marketing ads appear on Microsoft sites and Microsoft’s organic results (powered by Bing) appear in Yahoo searches. Once again, this deal will need to jump through the anti-trust hoops but if it does, it shapes as a real threat to Google’s seemingly invincible search monopoly. Having said that, for Australian users this doesn’t change all that much, as Yahoo! Search Marketing has been controlling paid ad placements on Microsoft sites for some time anyway.
After only a few short years, it appears that Microsoft’s Live search engine experiment has been put to rest and in it’s place has emerged Bing, which has launched a massive $100 million (plus) worldwide advertising campaign designed to capture some of Google’s 80-85% market share. The name Bing was supposedly chosen because it resembles the sound made when you discover what you’re looking for (the lightbulb moment), but more cynical users might more logically associate it with a Windows error message dialog.
I have a slightly different theory, as Microsoft no doubt realised they needed to come up with a name that could make its way into users’ vocabulary in much the same way that “Google it” has entered mainstream vernacular. The old name, Live, didn’t lend itself to being used as an verb, but with Bing, they do have that (faint) hope.
So what does this mean for the ‘Google v Microsoft’ battle? The early signs are that Bing is making some ground into the search engine market share, with figures reporting that Bing has captured between 5-8% of the total search audience since June 2009. This may not seem like much, but in a industry worth billions of dollars every year, this translates to a significant jump in advertising revenues. Being in the industry, I’ve also been asked quite a number of times about Bing, and in the 3 years that Live was in existence prior, I don’t remember it ever being mentioned by a client once.
There’s no doubt that Google still reigns supreme over both Microsoft’s various search incarnations and Yahoo but for the first time in quite a few years, it seems that both Yahoo and Microsoft have abandoned their “if you can’t beat them, join them” mentality when it came to Google and are now actually serious about taking on (or at the very least, making some inroads into) Google’s mantle as the undisputed king of search.
Bring on the next round…
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Read MoreGoogle Takes on PayPal – Google Checkout
If there’s one web company out there that can strike fear into the hearts of all the others, then Google is definitely it.
For quite some time, the online payment world has been dominated by PayPal, as its raft of features and ease of use for almost anyone has made it a logical choice for most online businesses. That was, however, until Google Checkout came along.
Google has taken their typical approach of making the use of its system totally free and easy to use. For a start, Google takes a flat 2% of any sale through Google Checkout (plus a 20c transaction fee) making Google Checkout competitive, if not cheaper than PayPal for most users.
But that’s not where its big benefit is. Google also offers free transactions on the dollar value of up to ten times your Google AdWords spend. That means if you’re a business advertising on AdWords spending $1000 per month, the first $10,000 you make in the month is all yours (with no commission for Google).
Since most businesses that have a checkout system probably use AdWords anyway, this is a massive advantage to using Google Checkout over PayPal.
But that’s not where the benefits stop. AdWords advertisers are also able to use the ‘Google Checkout Badge’ underneath their ads in the search engines and Google claims this badge improves both click-through and conversion rates (the percentage of people who buy) quite substantially.
However, Google Checkout is not just a threat to PayPal, but also to a legion of web designers who charge thousands of dollars to build custom shopping cart or e-commerce modules for their clients.
Users who sign up to Google Checkout are able to design their own shopping cart module using the built-in tools, and then simply cut and paste the HTML code straight into their site. Web development agencies who specialise in building website shopping carts are going to have to adapt and come up with new and exciting ways to build shopping carts or cut their prices drastically.
The big question that remains however, is when will Google Checkout come to Australia? Google Checkout currently supports buyers from around the world, but only supports sellers in the US and UK. Google’s information pages states that they are working to “make Google Checkout available in more locations” but can’t give specific dates.
Personally, I believe that Google Checkout will dramatically change the way online businesses are established in Australia as many website owners are crying out for a viable alternative to PayPal.
The ability to control all their purchases from one login is also a massive benefit for buyers.
Google is on the move again…
Popularity: 34%
Read MoreThe Battle for Search Supremacy – Google vs Microsoft – Round 2
A few months back I wrote an article about how Microsoft and Google were about to go head to head in search and detailed Microsoft’s plans to take on Google’s online marketing monopoly using display advertising. A few things have changed since then and it’s time to re-visit the battle.
Since that article, the much-hyped Microsoft-Yahoo! deal has fallen through (most probably for good now) and Yahoo! have signed an $800 million non-exclusive search advertising deal with Google that will see Google ads appearing in Yahoo!’s search results.
This deal basically means that Microsoft is really the only player left who can seriously have a tilt at Google. All the other players are either too small to be a genuine threat or have some vested interest in Google.
Yahoo! is now one of the latter. The problem that Yahoo! has is that by signing this deal, they have effectively conceded the search advertising war to Google, who maintain a massive market share of around 80%.
However, it’s important to note that this is not the first time that Yahoo! have outsourced to Google. Google supplied Yahoo!’s search results from 2000 to 2004 before Yahoo! engineered their own search engine. Microsoft’s MSN search was likewise outsourced for a number of years to LookSmart, Inktomi and AltaVista before they too decided to create their own engine in late 2004.
So while most consumers believe that Yahoo and MSN have been in the search game for years, and are regarded as the two ‘other players’ in the ‘Big 3,’ both have really only been producing their own search results for about four years. And now that Yahoo have gone back to Google for search engine advertising, it raises questions about whether or not even Yahoo! think they can match it with Google’s AdWords program.
Which brings us back to Microsoft as the only player who has not got some interest in Google’s success. There are a couple of signs that suggest Microsoft may be planning an assault on the Google fortress. The first is the breakaway of the MSN search engine to the Live search engine which operates on a cleaner search-oriented feel (much like Google’s) as opposed to the web portal style of MSN and Yahoo!. This move has allowed Microsoft to frame its Live search as a separate entity that is focused on search, something that Google used very early on to gain credibility.
The announcement of Microsoft’s plans to take on the realm of display advertising is another indication that Microsoft is mobilising its forces. Microsoft AdCenter, while currently no match for the AdWords juggernaut, is in a prime position to receive a makeover and move rapidly into the display advertising field.
However, if Microsoft plan to seriously take on Google they need to move quickly as Google’s acquisitions of DoubleClick, and to a lesser extent YouTube, suggest that Google is keen to move in on this new market as well.
So, whilst there is no doubt that Google is by far and away the leader in terms of market share for both search queries and advertising dollars, there are signs emerging that suggest the Microsoft giant is not ready to lose the search war just yet, although they have to be ready for a long battle if they want to pinch the crown.
Round Two – Google Knockout… but is there movement on the canvas?
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Read MoreGoogle is Search – But Can Anyone Topple the Giant?
Just as coca-cola was “it” in the 1980’s, in the 21st century Google is the king of search. Their command of both search queries (at somewhere around 65%) and search revenue (around 77% – BRW Magazine) is simply staggering and means that when it comes to search, they are conservatively doubling the performance of all their competitors combined. According to Google’s own promotional material, their advertising network alone reaches 80% of the world’s 1.4 billion internet user’s every month.
So the question then becomes, can anyone topple Google? In the late 90’s Yahoo! was the number one, but Google looked at Yahoo’s weaknesses and created a cleaner search engine that supposedly delivered better search results. But can anyone do it again?
Google continue to go from strength to strength, and their reach is unrivalled. Their advertising network includes AOL, Ask.com and now Yahoo and their recent acquisitions of DoubleClick and Youtube have only broadened their market.
With the much-hyped Yahoo! and Microsoft deal falling through, and Yahoo’s subsequent search marketing deal with Google, who is left to take on the giant of search? Let’s go through the main competitors:
Yahoo!
Currently sitting in a distant second in terms of both advertising and search query share, many claim that Yahoo’s search algorithm is actually superior to Google’s. Whether this is true or not is irrelevant, as the vast majority of users have spoken with their clicks and head to Google for its clean feel. The big thing that Google has over Yahoo is the way Google is able to separate out each of its products to keep that clean feel. Yahoo pack everything they offer into one homepage, which can make it hard to identify what their primary focus is. As a result, many users wonder whether Yahoo’s search is being given the focus it deserves. Yahoo will certainly remain profitable, as they have a loyal fan base that swear by it, but I just can’t see them storming the Google fortress, particularly now they are relying on their ad network.
MSN/Live
If Yahoo is a distant second, then Microsoft’s Live Search is back an eternity in third place. Again, however, there are those out there who believe Microsoft’s search to be better, but I am a definite sceptic on this one. For Microsoft to really succeed in search they need a massive overhaul, and massive overhauls are not really Microsoft’s style. More than likely Microsoft will just let Live run its course, as it doesn’t really seem to have the desire to be number one in search, or else it probably would have put more emphasis on it’s deal with Yahoo rather than letting it slip by the wayside.
AOL, Ask, etc
The old players in the market. Most of these engines still get a decent run of traffic, but most are also relying on Google advertising deals to keep them profitable. These guys are not real challengers for the crown.
Mahalo
Mahalo is an interesting one. Mahalo is Hawaiian for thank you, and the premise behind this start-up is that it is the web’s only human-powered search engine. That is, its search results are not driven by algorithm’s but by human generated results pages. To me it seems like Wikipedia and Dogpile rolled into one, as the user is able to search all the various other engines if Mahalo does not have a page created. I don’t think the concept of a human-powered search engine can work, particularly when it comes to updating it constantly at the speed of web. Wikipedia works but I don’t see Mahalo taking off. It is useful however, if you want to search all the major search engines (and Wikipedia, Youtube, Flickr) all in one go. Other than that I don’t see it ever matching Google. Google’s algorithm’s refresh daily, which is almost impossible for a human-powered search engine to match.
Clusty
Another meta approach to search. Just like Dogpile, Clusty attempts to rank results by aggregating results from other search engines. Once generated however, Clusty clusters results together into categories of results. This is a useful tool but won’t have Google shaking.
Other Small Start-ups
Quintura, Blinkx, Powerset, Kosmix, the list goes on. All these players however, are only targeting tiny market niches, market niches that Google could quite easily swat away with one extra feature to their own search results. The other problem most of these smaller players have is they lack the resources to operate their own search algorithm’s and many of the newcomers rely on refining a Google search.
The Verdict
Here’s the problem as I see it for the other players attempting to usurp Google; all of them either rely on Google’s search is some way or are targeting niche markets that Google could themselves cover by throwing a few million at a new Google product.
Google have already done this with email. Google took a search-based approach to internet-based email and eroded Microsoft’s Hotmail monopoly in a flash, so these small niche players had better watch their back. If Microsoft can be beaten so easily, where does that leave the little guy?
But all the big players (including Yahoo thanks to this new deal) are relying on Google in some way either for search results or search advertising. All, that is, except Microsoft. Microsoft’s Live is the one major search engine out there not dependent on Google’s algorithms or advertising dollars.
Over the last few years Google has continually stripped away Microsoft’s stranglehold on all things digital, and maybe the time is right for the old dog to get angry and strike back.
Alas, however, it doesn’t look like that’s going to happen…
Popularity: 3%
Read MoreShattering your Site’s SEO – The Google -60 Penalty
There’s been a rather interesting development in Google’s algorithm in the last few months and it has come about as a result of Google Sitelinks appearing at position 61. This has lead many SEO specialists to claim Google has introduced a negative 60 penalty.
Google Sitelinks are the links you see from time to time below the first result in Google. Google claims that the algorithm for Sitelinks is independent of its other algorithms and that navigation is the key to getting Sitelinks to appear below your website’s listing.
However, the only thing that is known for sure when it comes to Sitelinks is that they only appear for sites that have a stable number one ranking for a particular keyword. So the fact that Sitelinks were appearing at number 61 meant that the Google Sitelinks Algorithm (independent of the ranking equation) thought the site did have a number one ranking, not 61.
It is this result that has lead those in the SEO game to reason that Google has introduced a -60 penalty to the ranking equation. What this means is that a site that would normally appear in position one is now appearing in position 61, and because the Sitelinks algorithm still thought it was number one, we can assume that it was just one factor that was added to the ranking equation, but wasn’t added to the Sitelinks algorithm. Google have seemingly fixed the problem with Sitelinks appearing at number 61, but the sites themselves that dropped by 60 places are still in that position.
So the question then becomes; what is it that these websites are doing that is so bad it is costing them 60 places in Google?
When the issue first came to the fore in February, numerous discussions broke out about why Sitelinks were appearing so low. Whilst no-one from Google officially confirmed a -60 penalty exists, some Google employees, including Matt Cutts (Google’s Head of Webspam), did comment on these discussion boards that Google was penalising sites for paid links.
So without directly saying so, it appears that Google is now penalising sites 60 ranking places if it deems the site is taking part in extensive paid referral activities (called site-wide-links).
So the message here for the moment is to stay well clear of paid referrals, or any linking techniques that appear as if they are for paid referrals. The penalty is too great to risk it.
Popularity: 2%
Read MoreThe Battle for Search Supremacy – Google vs Microsoft
The recent news that Microsoft and Yahoo have decided not to go ahead with their planned merger has led to Microsoft announcing that they intend to take on Google by themselves. On paper it seems like an achievable task, America’s second biggest listed company taking on number 16. In fact, with almost double the market capital behind it, Microsoft should probably be considered favourites in a head-to-head tussle.
But why then is everyone so sceptical about Microsoft’s prospects? Why is the Microsoft juggernaut all of a sudden vulnerable to this relative rookie company with big dreams? The answer is simple; Google do search better and they have the market in the palm of their hand.
Microsoft’s MSN/Live search and Yahoo’s search are just not making inroads against Google’s tried and tested simple approach. Google has a no-fuss approach to search. Their homepage is simple, results are clearly displayed and most users have faith in the Google algorithm’s ability to deliver relevant search results. Live and Yahoo! have not worked this out or refuse to blatantly copy Google’s premise.
The name Microsoft once struck fear into the hearts of all other digital companies, because it seemed that no matter how well you did something, Microsoft could throw millions at it and take your market.
But Google has changed all that. Microsoft have been trying for years now to replicate Google’s success online, but according to BRW Magazine, have only managed around 5% of US search revenue market share, compared to Google’s whopping 77%. Google has humbled the once un-toppable giant.
The secret to Google’s success is that, out of all the big search engines, they have the most conspicuous ads. Live and Yahoo! both have ads cluttering their homepages whereas Google only display ads in search results and their AdWords quality score algorithm keeps their ads fairly relevant as well. For this reason, a search results page in Google does not “feel” like an advertising billboard, which can be the case in other search engines.
So that brings us to now, where Microsoft is once again claiming that they are ready to take the mantle as the net’s premier search engine. Microsoft are currently working on capturing the display ad market, with development teams working overtime on technology for video and banner ads that display more relevant ads based on a user’s browsing patterns.
Of course Google are not going to sit back and wait for Microsoft to gain ground on them, and their recent acquisitions of DoubleClick and Youtube suggest they are already going on the offensive.
So who’s going to win? Microsoft or Google? From what I’m seing the answer is Google. Google have the market cornered and are not going to give it up without a fight.
One of the reasons I believe that Google will win (this round) is that they have quite remarkably managed to dodge the ‘big bad company’ tag. It is very common for large corporations to become disliked in the court of public opinion because they are greedy or ‘out to get us.’ It seems that no matter how big Google get, they are still liked by the public. This can probably be traced back to the way Google manages its staff, who work in more of a resort than an office. In the search engine wars, Google are the good guys whilst Microsoft are the baddies.
Microsoft will undoubtedly keep trying, they always do. Search engine advertising is too big a market for Microsoft to give in, but if this new display ad platform is once again outperformed by Google, they may have to go crawling back to Yahoo. Microsoft have already hinted that they may revisit the idea by putting the merger decision to a shareholder vote, indicating that even inside their own ranks they have doubts over their own ability to beat Google.
My gut feeling says that Microsoft and Yahoo will be together sooner rather than later. If and when this happens it is critical that they do not try and copy Google, but rather come up with a new kind of search experience, that delivers the most relevant search results (including ads) and offers more for Internet users, but I won’t be holding my breath.
Round One – Google Knockout…
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