Tag Archives: ads

Yahoo is Done Searching. Microsoft Gets Their Way (Sort of)



bing yahoo

Well, it was a deal that was a year and a half in the making. Actually, it’s been longer than that – nonetheless, Microsoft has finally gotten what they want. While it still needs to have a final stamp of approval, it looks like Yahoo search will become Yahoo Search powered by Bing.

The real history is this: Back in 2005, Microsoft talked ‘Partnership’ with Yahoo to thwart the ever growing Google. That was during the Instant Messaging days – When it was announced that MSN Messenger and Yahoo IM would be able to talk to each other.

By May of 2007, Microsoft and Yahoo were in talks of an apparent $50 Billion dollar merger. While that didn’t happen, we started seeing the beginnings of the Mass Exodus of Yahoo. Employees such as Farzad Nazem – who was Yahoo’s CTO at the time – took retirement. That was followed by other key players in Yahoo’s stable.

However, the battle didn’t really start until Feb 3rd, 2008, when Steve Ballmer offered $41 Billion to take over the company. It was a long – drawn out battle that gave people like Carl Icahn a seat on Yahoo’s board and Jerry Yang the heave – ho as CEO. Since then, Yahoo has plummeted in stock price.

Carol Bartz took over as CEO in January 2009 with a renewed hope. However, the Yahoo name has been pretty stagnant until just a couple weeks ago when they revamped email. Closing services like Yahoo Music and Geocities helped Yahoo score a profit in Q2, but the search side had remained at a plateau.

Then along came Bing.

“I think actually Bing is a good product. ” Carl Bartz announces in a transcript. “It actually extends sort of the experimentation around search and how people use it instead of just thinking like a standard blue link.” She goes on with “…Microsoft should be given kudos for Bing.”

What is supposedly proposed is that Microsoft will take over the search engine side of things. Yahoo will continue with ad placement on the site. Yahoo is expected to get 110% of search ad deals until 2011, in which it will drop to 90%, according to Allthingsd.com.

The drama is expected to unfold in the next 24 hours as it is said to be a ‘done deal – with the formalities happening later today’. Right now, neither side is ready to comment.


Online Local News Forces Local Businesses Online



The truths:

  1. News is moving online.  People want instant access to news without waiting until the next morning or afternoon.
  2. The recession has caused a terrifying drop in printed advertising causing a quick but low profit move online.

The conclusions:

  1. Local news companies must move to quick unabbreviated news online that incorporates local business advertising.
  2. Local businesses must move online with a web presence that brings both foot traffic to the brick and mortar store as well as an online business.

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An example:

The Fargo Forum moved to a CMS and used their site extremely well during the recent flood.  The site is not necessarily as polished and easy to navigate as Foxnews.com, but a good start in the online news business.  However, the prime advertising real estate on the site is for Forum operated sites.  Sites that local businesses can join and participate/advertise in.  Really they are ads for the Forum classifieds (i.e. Homes, Apartments, Cars, etc.)  There are really very few ads for individual businesses.  And once you visit the the business you may or may not be greeted by a discount or sales offer.  This must change if local news and businesses are going to make the transition.  The Forum is definitely in the game and making progress but it has room to grow.

The online move of news could force more and more local businesses to develop a true online presence.  It may not mean an online store, but it will mean an online version of what they would have had printed in the paper.  Additionally, they can have the equivalent of an entire sales flier for the price of an online click-through ad.  Could this mean a resurgence for web developers as local businesses must build dynamic CMS sites?  I believe that the local news agencies and businesses that catch on to this partnership and market will rediscover the advertising gold mine.  The early bird will get the worm.