Microsoft (NASDAQ: MSFT) has never been shy about announcing grand plans. But in the arena of online advertising, that plan may simply be to move into second place.
Reuters reports that "the plan, which represents Microsoft's aspirations over the next three to five years, calls on Microsoft to increase the company's share in web search, page views, percentage of time on the internet and percentage of advertising dollars." The world's largest software company is clearly way behind Google (NASDAQ: GOOG) in online dollars, and also trails Yahoo! (NASDAQ: YHOO).
The cornerstone of Microsoft's plan is to get its share of the online search market from 10% to 30%. Those that think that number is crazy get a gold star.
For Microsoft to presume that it can triple its share of search means that Google would have to lose at least 10 points of its market share and Yahoo!'s piece of the market would be cut in half. There is absolutely no evidence that the Microsoft search product is anywhere close to Google's in quality of results. And, internet search habits for most users are probably fixed and would be hard to change.
Microsoft having 30% of the search market is not unlike it taking a third of the market for music players from the Apple (NASDAQ: AAPL) iPod. The big software company has tried that with the Zune and the results have been embarrassing.
Douglas A. McIntyre is an editor at 247wallst.com.
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Reader Comments (Page 1 of 1)
2-01-2008 @ 11:34AM
Thomas Jowers said...
wellllllll, with todays news, looks like microsoft just met its 30% share didnt it, so those of you that took a "gold star" can now give it back, lol
11-16-2007 @ 11:00AM
John said...
It won't happen,but the thing that Microsoft is overlooking is that the more successful that they are on the internet; the more they are canabalizing their own software business.
11-16-2007 @ 12:16PM
Bryan said...
It's next to impossible to find what you're looking for while searching within Microsoft's own site, or their own operating system, for that matter. Microsoft does not know search.
11-17-2007 @ 7:34PM
David F. said...
As a website owner and a user of Google's Adwords advertising, I would say that Microsoft has a very good chance of catching up with Google. Anybody has a good chance to even overtake Google. Google is oblivious as to how to organize their search results. Google is looking more like the Pennysaver everyday. Just like the Pennysaver, they allow gimmicky bait and switch type advertisers to advertise along side reputable established advertisers. This will eventually result in declining advertising revenues as the reputable advertisers pull out. It will resemble a mass migration to the suburbs in the online world.
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