Can Microsoft/Yahoo/Microhoo compete with Google

February 23rd, 2008

I recently attended the SES London 2008 conference down in the Business Design Centre down in London (for day 2 anyhow), where well established SEO ‘celebs’/speakers such as Mike Grehan, DaveN (Dave Naylor - Bronco ), Paul Doleman (iCrossing) and Jon Myers (Mediavest) presented various topics relating to search and online marketing over the course of three (very intensive days). As mentioned previously, I was lucky enough to attend the second day, which was started with a Keynote speech from Nick Carr, followed by a Q&A session with a panel consisting of

• Kevin Ryan - Moderator
• Mike Grehan - CEO SearchVisible
• Paul Doleman - CTO iCrossing
• Erica Schmidt - Head of Search Isobar
• Steve Kauffman - Digitas
• Bryan Eisenberg - Future Now

The main topic of debate was the recent proposed takeover by Microsoft of Yahoo, something which has been a hive of discussion in the recent times, not just directly in terms of Microsoft buying Yahoo but for anyone else potentially buying Yahoo. One of the questions however asked was - would this allow Microhoo to compete more effectively with Google, something I am going to attempt to answer below.

In my opinion no - not unless something radical (and yes a merger between Yahoo and Microsoft is quite radical - but I mean MORE RADICAL) was to happen. To me there are a number of factors that would need to be overcome before any such ‘merger’ would bair fruit including (but not limited to):

• Mindset - one is pioneers of the Internet, one is pioneers of Software - both which have changed Significantly since the days when both these organisations were ruling the roost. Their approach to business is also considerably different, Yahoo is reasonably innovative, and arguably Microsoft is not, however both have been very slow to react to changing markets, requirements and social climate
• Character - Sort of similar to the above - however there is a signficant difference in culture between Yahoo and Microsoft which would need to be overcome before anything else. Google is successful as the sum of a collective - something I feel would be a huge obstacle to something as major as a merger/takeover between the two above - and possibly something that would suggest a merger with another organisation such as Fox Interactive would provide a better yield on investment than any Microsoft deal
• Moving forward - Both Yahoo and Microsoft do not seem to have the same ‘innovation’ and drive that Google have within both Search and the Online Advertising space. Both seem to be happy to ‘consolidate’ to a certain extent and leave Google to it, which potentially could be a dangerous thing to do with competitors such as Baidu, Naver et al on the horizon.
• Technology - Both the Yahoo and MSN Paid Search services are VASTLY inferior to the Google Interface, and personally this is something that would require significant investment in, not only from an administration perspective but also from a marketing/managability perspective if it is to compete with Google more effectively.
• Support - Both services are somewhat limited in their service and support in my previous experience - something Google seem to do better - I only had to listen to Andew Girdwood from BigmouthMedia talk about their discussions with Google whilst developing the Hilton Hotels Online Marketing campaign in order to see this, and something both Yahoo and MSN need to work on. This and their support for smaller organisations - after all small organisations don’t always stay as small organisations…
• US focus - Whilst this is small - I can’t help thinking that if Yahoo and MSN were to spread their vision out of the US remit and include more of Western Europe etc into early beta testing, launches etc, they could make some early significant wins, not only with agencies but with advertisers only. Using Yahoo Ambasador as an example -this is something - that whilst some UK advertisers do have - is something that is only available to US and Canadian organisations - and not us minnions across the pond - and this US focus I would suggest reflects itself in the Usage stats for the North American market vs that of the UK etc - something I would love to hear further feedback on

One thing that did however stand out at the conference, was Yahoo and Microsofts reluctance (for use of a better word) to get out there. Google’s attendance at the conference was highly evident - big stands as well as the usual Google University sessions whilst we were there. However Microsoft and Yahoo were both conspicious in their absence.

So can Microsoft or Yahoo compete with Google? Compete I would say Yes, be market leaders No. I don’t for one minute think that Google will dominate the market for ever - others will rise and fall as they do with other markets and as they have done once before within SearchSpace. However do I think it will be Microhoo - No !!

Entry Filed under: SEO Industry, Search Engines, News and Views