Yahoo! earning big from Search Engine Business
May 23rd, 2005 Leave a comment Visited 36 times, 2 so far today
Yahoo! earning big from Search Engine Business
The Google mantra is working nicely for the most popular dotcom on the web and prime competitor Yahoo! The web search and portal company based in Sunnyvale has reported that it earned nicely from their renewed efforts in the Internet Search Market.
Things were not as good a couple of years ago as the dotcom bust meant that the company was looking for new sources of revenues. The difference was made by the acquisition of the Overture Company, which specialized in search engine advertising.
Overture was a firm believer of the power of advertisement in the search results and joined hands with the Yahoo! to expand their horizon. Yahoo! itself realized the potential of the search engine market and accepted the deal to work on Overture technology for search engine advertisements.
Yahoo! made search technology as a business priority and the efforts resulted in estimates of around USD 1.2 Billion in ad revenues for the search engine company. The company worked on their search engine technology after breaking ties with Google, which now is a prime competitor in the same market.
the company has tremendous brand value amongst the users on the web and reports from the results from the month of February says that Yahoo! was the second most used search engine on the web with around 31% market share compared to 36% of Google. These are amazingly good numbers for the company.
In fact, critics from the search engine industry claims that Yahoo’s result quality is at par with Google’s and they are at a better position to challenge the leader when compared to the Microsoft’s MSN Search Engine. However, these are changing times and Microsoft with their huge resources can make a difference though currently they are nowhere near the top two players in the market.
Now, Yahoo! have their own search engine based on the technology they gained on acquiring Inktomi. They are also running their own ad-serving engine based on the content on the pages using the technology acquired from Overture. The next aim would be to displace Google as the world’s most preferred search engine. It is tough, but they seem to be taking all the right steps.
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May 23rd, 2005 at 9:25 pm
Let’s hope that they don’t go the same that Google appears to have gone and start using a toolbar to send web page readers directly to Amazon, etc.
The loss of potential revenue that this can represent to site owners may well be the difference for many good sites between covering their hosting and bandwidth expeneses and just disappearing althogether, thus impoverishing the Web.
May 24th, 2005 at 2:19 am
Improved search marketing on the part of the search engines also means dwindling revenues for companies who market through natural search.
Fewer and fewer people click on the actual results. Research shows that they are more likely to click on the sponsored listings on top and the side of the page. More money for Yahoo, less clicks for the rest of us.
In a way, the search engines are stealing traffic (therefore money) from the very people they can thank for their success.