Microsoft sat back while Google showed everyone how to take a search engine from 2 kinds having fun to a top 20 American company. How did they do it? Well just look at there revenue numbers and you will see a massive percentage comes from the Adwords & Adsense products. Now Microsoft is trying to get into the online advertising game but can they hope to compete without aquiring Yahoo and its volume? I think Microsoft will make a move at Yahoo and its going to happen in 2007.
Here are 10 reasons why:
1. The search algorithm… duh… Microsoft’s horrid search algo is by far the single biggest problem that Microsoft has right now. The problem is that when there is no users using the search engine then there is a ton of ads that never are shown. If Microsoft were to acquire Yahoos search algorithm this would be a GIANT step in getting users back.
2. Overture Yahoo Search Marketing. Microsoft used to broker every through the company formally known as overture. for showing ads on msn.com search. They are now trying there own company but its chugging along at a very slow pace. Most advertisers like Microsofts Adcenter but agree there is just not enough volume from its search engine (see #1).
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