Google`s Search-Based Advertising Catches Attention of Microsoft

Released on: June 19, 2008, 1:21 pm

Press Release Author: phatguru

Industry: Marketing

Press Release Summary: The name for Google was taken originally from the term
"Googolplex" (a number that is equal to 1 followed by loads of zeros and expressed
as ten to the tenth, hundredth power). Google, the company, is truly living up to
its root name. Google, the business, means big numbers, big profits, and big
competition. Google is THE Internet search engine to be reckoned with, generating
large numbers from the advertising industry.


Press Release Body: Google's Search-Based Advertising Catches Attention of Microsoft
By: ConnectThru.com

The name for Google was taken originally from the term "Googolplex" (a number that
is equal to 1 followed by loads of zeros and expressed as ten to the tenth,
hundredth power). Google, the company, is truly living up to its root name.
Google, the business, means big numbers, big profits, and big competition. Google
is THE Internet search engine to be reckoned with, generating large numbers from the
advertising industry.

Google offers many areas for individual users to utilize advertising space with
Google's AdWords and programs like AdSense. However, it is Google's main, showcase
advertising-the style and search-based advertising model- that has been the envy of
all its competitors in the Search Advertising Market.

In February of this year, Microsoft made an unsolicited bid to purchase Yahoo! for
$44.6 billion dollars, cash and stock. The Yahoo/Microsoft Merger is after more
than search-based advertising. Microsoft has plans of using Yahoo to help bolster
their place in all around online advertising. Still, Google is untouchable.

A part of Google's advertising success can be credited to the advertising
inadequacies in competitors such as Yahoo. During February 2008, Google distanced
itself from all competitors in the U.S Search Market. According to the Washington
Post, Yahoo\'s share slipped to 21.6 percent, from 22.2 percent a month earlier.

Google is a growing force against all search engines and search-based advertisers
mainly because of its fan-base. Many users prefer Google due to the minimalistic
approach to searching. The Google homepage is famous for this simple presentation.
There is a search bar and a main GOOGLE header. That's it. When Google's search
results are returned, they are organized in a clean, comprehensive layout. This is
a sharp contrast to the overwhelming clutter on the Yahoo and MSN search pages. The
choice of search engines seems just as simple.

Google is not concerned about any meager threat that Yahoo and Microsoft pose for
its advertising revenue. However, Google is worried about the pressure that
Microsoft and Yahoo place on the open nature of the Internet, where even small
companies have a chance to be competitive. This merger will also compromise an
on-line environment that fosters innovation through competition.

Drummond, Google's Senior Vice President, Corporate Development and Chief Legal
Officer, discusses Microsoft as encroaching on a monopoly. Drummond states: "While
the Internet rewards competitive innovation, Microsoft has frequently sought to
establish proprietary monopolies -- and then leverage its dominance into new,
adjacent markets." Microsoft has a reputation for conquering smaller companies.
Microsoft is eyeing up Yahoo as something that they can incorporate in the Microsoft
engine. Even though Yahoo may not be a small company, their size, use, and power is
alluring to Microsoft as their combined efforts could create a challenge to Google.

However, could a merger between Microsoft and Yahoo even be successful in the first
place? Many speculate nay. The infrastructure of Yahoo is massive. There are14,000
employees strong. Aside from that, the Yahoo users need to be considered. The
ubiquity of Yahoo's software and email accounts are even larger.

Among the many other conflicts brewing between the two businesses, the software is
the biggest concern. Both companies use different data systems. According to New
York Time's reports, "Microsoft's data centers run on proprietary software that is
incompatible with the open-source programs and applications adopted by Yahoo!" As
opposed to Microsoft, Yahoo has been actively building in open source format. Open
source is a human-readable source code. The code is copyrighted, or licensed.
Microsoft's programs are coded with a different encryption than the technology used
by Yahoo!

Many of the apprehensions to a Microsoft and Yahoo! connection stem from the
problematic technology merger. Due to the difference in operating systems, a smooth
assimilation process between of Microsoft and Yahoo! would be a similar version of
chaos only likened to the Spring and Nextel fiasco during their combination in 2004.
When these merges happen, is it fair to the loyal customers, or in this case
subscribers? What will happen to the email accounts, especially since the
compatibility between the companies is so disparate?

Still, the team at Google is keeping a vigilant eye on this possible merger, fearing
violations of antitrust legislation, their main concern. Google's advertising
methodology and market space seems to be quite safe. Maybe less really is more,
especially in the case of Google and its minimal approach to advertising design.



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ttp://www.phatguru.com/
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