How far is Microsoft willing to go???? Far enough..!

By: ispeculatornew
Date posted: 11.25.2009 (5:00 am) | Write a Comment  (6 Comments)

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microsoft_logoA few months ago, Microsoft launched Bing, a search engine destined to compete with the might Google in the lucrative search market. They said early on that they were going to spending tons of money ($5.5 billions to $11 billions) in marketing this new tool and the results are not bad considering the huge slope the company faces. It now gets about 10% of market share and is getting new features that Google is scrambling to add.

When Bing announced it would be integrating Twitter content into its search engine content, Google went public a few hours later to announce it was planning on doing the same. Just seems like Google is on the defensive…! It now seems like Microsoft has opened the door to something that could do more damage to the search giant.

After hearing News Corp complain about how Google is making money off of its content, a new idea is out there; to have Bing pay News Corp to have the exclusivity of the Wall Street Journal content. Its unclear how this could work and if it is even possible given the technological challenges involved. But this could set an interesting precedent. Imagine if some content was only available on Bing, wouldn’t that given a major incentive to users to start using the giant?

This could mean that major news websites could be found on only one search engine and could potentially change the face of search for the long term.

The problem is that this could end up being very expensive to Microsoft. Initial suggested figures are that a 10-15$ millions payoff would be enough to make it worthwhile to the Wall Street Journal considering the lost ad revenues from lost Google referrals. To do this for one publisher is very possible given the huge budgets of Microsoft. But it seems unlikely that they could block out hundreds of similar websites.

Is one enough????

I can already imagine Bing making a major ad push in the financial papers, magazines by announcing that Wall Street Journal’s content could only be found on Bing and in that perspective, it could very much be worth the investment to Google. One thing is for certain, it might be worth the gamble, just to see if it can have any impact in its battle with Google!

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6 Comments

  1. Comment by PA — November 25, 2009 @ 5:01 pm

    Here’s a bold prediction: Bing will have ~15% market share (by itself) by September 2010.

  2. Comment by IS — November 27, 2009 @ 8:56 am

    I would actually agree with you on that prediction, especially with Yahoo losing market share so quickly

  3. Comment by PA — November 28, 2009 @ 1:22 pm

    The first big chunk would come off Yahoo, no doubt. I believe, however, that Bing might even get a few % points from Google (even assuming Google is going to be really nimble in matching up features). Let’s see.

  4. Comment by IS — November 30, 2009 @ 8:33 am

    It will be VERY interesting because if Bing can keep improving its market share, it will start to get more media attention and that will help to get more market share, more attention, etc…

    It will be interesting because some of the features seem to be better already on Bing. The maps seem to be a major hit for example.

  5. Comment by PA — December 4, 2009 @ 1:48 am

    Well said. I notice exactly that — Bing, partly due to rolling out more, sexier, features is gaining market share, which is getting it media attention (just check techmeme.com — way more Bing headliners of late) .. and this media attention certainly bodes well for “awareness” which is key to market share I think (see Bing chief Satya’s recent presentation about Bing’s “unaided” awareness increasing). If you notice Google ALWAYS tries to be in the limelight .. stealing thunder from MSFT at multiple instances (key MSFT announcements surrounding Bing, Office online, Windows 7 were EACH followed by or preceded by rather big announcements by Google: Chrome OS and others). I think this “media attention” is necessary for consumer driven entities, since the name Google has to stick around, always be there — thats what creates the “habit”.

    I think MSFT has a winner in Bing. Just need to see how far it goes and how fast Google reacts and holds share. Google has maybe 1-2 years of good growth, IMHO.

  6. Comment by PA — December 4, 2009 @ 1:51 am

    PS: I notice that you liked Bing maps on Nov 30th, then you should definitely check out uber cool maps they rolled out using MSFT’s silverlight plug-in (I do hate plugins) just yesterday .. they are ten times better!

    Btw, I was on CTRP following your recommendation, sold it much before you did (since I promised myself to ALWAYS take profits early) and boy did it run like crazy 🙁

    Thanks for the blog though, lovin’ it!

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