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Because there has been so much talk and speculation over what will happen this fall in conjunction with the Bing/Yahoo merger, I thought it would be prudent to explain some of the major points to everyone.
During the fall of 2009, after concluding that it just could not compete with Microsoft, Yahoo abandoned its own search engine technology and signed a deal to replace it with that of Bing. With Microsoft covering the bill for innovation on the search front, Yahoo planned to focus more on cleaning up its advertising and content delivery. Yahoo also became the primary, paid search sales effort for both. The two competitors hoped to make a greater impact on Google, who at the time carried about 70% of the total search market space.
Fast Forward to the Present
Beginning this fall, along with Bing running Yahoo’s search engine, the latter’spaid search results will also run under the Microsoft platform, which will allow Bing to manage the relevance, quality control, and target markets; consequently, Bing will provide a much larger market share and a greater inventory of advertisers. Yahoo will still get 88% of the total revenue, while Microsoft’s Bing assumes all of the power.
Implications for Paid Search
Beginning in September, Bing will manage all paid search results on both search engines. For most search engine marketers, this news is great because now we really only have to develop a method to optimize two PPC campaigns (Google and Bing) instead of three.
By gaining a larger audience with more technology and expertise, SEO and Paid Search firms will probably also begin spending more money on Yahoo traffic, which never before carried heavy conversion traffic. I am fairly certain Google will continue to dominate the SERP world, but it better make sure it keeps its advertisers happy so that firms do not start transferring more money to Bing.
Microsoft’s Bing is now in a great position because it can really step up its game by providing some major innovation to the market. If it does so successfully, it will definitely put a fire under Google to become more innovative with its paid search platform, which has not changed that dramatically over the past few years.
To Wrap it Up
Do not worry. Despite that the demographic of users on these respective search engines are different, so far the circumstances look like a win/win situation , similar to when Bing began to take over Yahoo’s search engine back in 2009.