The Microsoft adCenter Code Blog

Cracking the MSN Adcenter Code

Google Punches Yahoo in the Face?

Filed under: MSN adCenter — jack at 9:19 am on Tuesday, October 24, 2006

This blog is really about Microsoft Search Marketing but I think this is a great article and begs the question of when Microsoft is going to get into the publisher market in earnest. You can read the article on Comtech News at the following link. -  Google Punches Yahoo in the Face

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More Info on Google Custom Search

- Google Custom Search on Google Co-op
- Announcement on the Jensense Blog
- Announcement on the Google Blog

New Link Search Command from Microsoft

Filed under: MSN adCenter — jack at 9:25 am on Tuesday, October 17, 2006

Microsoft Search has just done something that should help win them some friend’s amount search engine marketers.  They have introduced a new search command called, msn search adds linkfromdomainLinkFromDomain.  It works fairly strait forward, simply enter the command LinkFromDomain:domainname.com and you will see all the sites the domain links to.

This allows site owners and competitors both the ability to sort of “complete the puzzle” and it is also a very nice way to check your site to see if anyone has hacked it and hidden links in it.  This is far more common then many think!

For a complete review of this service see my article “Microsoft Link Search Command Reviewed” on ComTech News.

Jack Spirko

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Microsoft Search is the Number One Search Engine?

Filed under: MSN adCenter — jack at 1:14 pm on Thursday, October 12, 2006

Yep you bet they are, well at least according to Google that is!  Let me explain becaue this is a unique thing doesn’t mean that Microsoft is winning the search engine war at all but it is kind of funny and there is a huge SEO lesson in it for us to learn.

First, here is what I mean if you run a Google Search for the term “search” you will find that Google ranks MSN Search number one of about 8.9 Billion other websites and they only rank themselves number 3.  You can view the result here, Google Results for Search.

Just incase it changes anytime soon here is a screen shot of the result I took at the time that I wrote this post.

Now like I pointed out this is kind of cute and all but doesn’t mean Microsoft has the best seach engine just that Google thinks that seach.msn.com is the most relevent site for the word search on the internet at this time.  If we want to learn from this we need to ask a one word magic question.

Why?

It is really quite simple, Yahoo was always called Yahoo, Google was always called Google and MSN was has always been called MSN Search.  See the difference?  So what that means is thousands of site owners over the years have linked to MSN (now Live.com or is is it Microsoft Search or still MSN, evil grin) and done so with the anchor text of “MSN Search”.  So when you are starting a new site or branding effort you really need to think about what you call anything you are going to attempt to develop links for.

There is a second lesson here many people already know but it is kind of interesting to see it driven home this way.  Search for the word search and you get the following resultsfor MSN Search by each major engine,

1.  Google #1
2.  Yahoo (not in top ten)
3.  MSN Search/Live.com (not in top ten)
4.  Ask.com (not in top ten)

Now is that not interesting?  So whats the deal?  Simple Google is applying more weight to links in their ranking then any of their competitors.  Or more accurately they are applying more weight to authoritive links then any of their competitors.  So in anyone needed any more proof that links are more important then content to Google I think this is yet another confirmation of that fact.

What do you think about MSN being number one for “search” on Google?

~ Jack Spirko

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Microsoft brings Windows Live Search out of beta mode.

Filed under: MSN adCenter — jack at 12:54 pm on Tuesday, September 12, 2006

Microsoft brought Windows Live Search out of Beta mode today and also initiated the process of unifying its services. “We taking users of MSN Search and upgrading them to the Live Search experience,” over the next few days, said Christopher Payne, Microsoft’s corporate vice president, Windows Live Search. “Live.com is now first and foremost a search destination,” he said.

Microsoft has also pushed the Windows Live Local service out of beta, and added a number of new features to the overall suite of Windows Live services and MSN.

Image search has also been upgraded. Previously powered by PicSearch, Microsoft is now using its own internally developed image search algorithms and index that have been over a year in the making.

A slider at the top of the result page allows you to control the size of the thumbnails presented, and a menu gives you a number of different options for displaying thumbnails of specific sizes. Mousing over a thumbnail causes the image to expand, and also spawns information about the filename, size and location of the image.

Unlike web search, image search continues to use the “infinite scroll” for results, allowing you to see a continuous series of images as you scroll down the page.

But the coolest feature is the addition of a “scratchpad” that lets you drag images to the right pane and save them as a “collection,” which you can name and then recall at any time. The scratchpad , which made its debut with Windows Live Local search, is a very helpful addition to image search, and would be a welcome addition to web search results, as well.

Microsoft has also added its relatively new QnA question answering service, as well as a video search service to Windows Live Search. Payne says that social search initiatives have become a key area where Microsoft feels it can aggressively compete with Google and Yahoo as it leverages and integrates tools like QnA, Messenger and MSN Spaces for its more than 200 million registered users.

For the new video search, Microsoft partnered with AOL owned Truveo due to strong customer demand, according to Payne. He said that Microsoft is building its own video search, however, but did not say when the company plans to roll it out.

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The Internet Marketers Creed

Filed under: MSN adCenter — jack at 9:03 am on Tuesday, September 5, 2006

I was a solider at one time in my life back 17 years ago. I joined the Army at 17 and then served in the US Army Airborne during the First Gulf War. After that I served for 2 more years for deployments with combat engineers in Panama, Hondours and El Salvador.

Today in my mid 30s I am a prior service “old man” in the eyes of the young guys out there serving today and like most “old men” from time to time I day dream and think back to my less sane years when jumping out of an aircraft flying so low that deploying a reserve was not a real option was something I considered, “fun”.

The other day during a morning drive I was trying to think about some marketing ideas and one such old solider day dream came to me. I attempted to fend it off and think of some new marketing ideas. For some reason, the old “Riflemens Creed” kept playing in my head.

Perhaps you have heard in the movie, Full Metal Jacket, it is the one that starts out, “This is my rifle, there are many like it, but this one is mine. Without me my rifle is useless, with out my rifle I am useless”. I then thought about how as Internet Marketers we could easily call our knowledge our “rifles”.

Think about it, “this is my knowledge, many have it but this knowledge is mine. With out my knowledge I am useless, with out my actions my knowledge is useless”. That is about as true a statement as can be made about being an online marketer!

By the time I reached my destination the “Internet Marketers Creed” work was already complete in my head, only getting it into print was necessary.

I published it on Friday over at Comtech News, if you want a new look at your mission of internet marketing follow this link The Internet Marketers Creed

~ Jack Spirko

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Microsoft adCenter Rolling Out Content Ads Beta

Filed under: MSN adCenter — jack at 1:34 pm on Wednesday, August 30, 2006

If you are interested in the Microsoft ContentAds then you may want to know that select Microsoft adCenter advertisers just received invitations to participate in the new ContentAds pilot, which begins running this fall.

In a recent email select advertisers were told that ads would appear on various MSN owned websites such as MSN Real Estate and MSN Money, as well as others linked from the main MSN portal. For those who are hoping to display MSN ads as a publisher there is a ray of hope in the invite, here is part of the email we recieved from MSN adCenter.

Content Ads is Microsoft’s next product that allows advertisers to place content-targeted, text-based advertisements primarily on Microsoft-owned properties including MSN Money, Real Estate, and many others within the www.msn.com portal.

This migh mean that ads for this pilot could also appear on non-MSN sites, meaning website owners may be able to get into this program before it officially launches as a full-service publisher program similar to Google AdSense or Yahoo Publisher Network.

ContentAds will also be utilizing demographic targeting, geo-targeting and incremental bidding tools for all advertisements as well, so advertisers will have full flexibility on their ads appearing through ContentAds.

I am most looking forward to the day I can particapate in the program as a publisher but for now we are happy to be invited to the beta on the opposite end of the MSN Search program,

~ Jack

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Microsoft’s MSN Search Ads to Appear on Facebook

Filed under: MSN adCenter — jack at 7:40 am on Friday, August 25, 2006

In what has to be see as a direct response to Google’s exclusive deal with MySpace Forbes has reported that Microsoft has announced a similar deal with Facebook.  Under the deal announced late Tuesday, Microsoft will sell and provide banner ads and sponsored links for Facebook using the Microsoft adCenter online advertising platform and other in-house technology and services.  Financial terms of the deal were not disclosed. It is expected to run through mid-2009.

The deal is a big win for Microsoft’s MSN adCenter and should give them not only another source of quality traffic but highly targeted traffic amoung the High School and College demographic.  Microsoft has already shown it is willing to take the lead in demographic targeting one can only hope they will do the same here.  Unlike MySpace you must have an account and be logged in to view Facebook pages.  This means there is demographic data available for 100% of ad viewers.

Critics point out that Facebook has only 9 million users where as MySpace has over 100 million yet there is tremendous value in a 9 million user highly targeted captive audience.  Also ask any web marketer what he would rather have 10,000 highly targeted visitors or 100,000 totaly random ones and you will find that most will value the targeting over the raw number.

This can be a massive success for Microsoft, time will tell if they choose to make the most of it.

~ Jack

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Are PPC Bids To High?

Filed under: MSN adCenter — jack at 9:54 am on Wednesday, August 23, 2006

PPC Pricing Too Expensive?Doug Stotland, Group Product Manager, Microsoft adCenter, MSN Search, told advertisers on August 22nd that they have the “capacity to pay more for a click” in response to questions about bids being to high and a growing ROI gap. At a Search Engine Strategies Conference panel, called “Meet the Search Ad Networks“, Stotland recommend that advertisers “adapt and adopt” to a changing market place.

Stotland indicted that he is often asked when clicks prices will stop rising and why the Big ROI Gap is getting bigger. According to Stotland, there are three explanations for rising click pricing:

1. Increasing demand from new advertisers and from bigger budgets of existing advertisers.

2. Irrational advertisers bidding up click prices.

3. Increasing ROI from search advertising.

I would tend to agree with this assessment as advertising on the web is probally the only form that truely is set at a real honest “market value”. If people are paying 2 dollars a click for a term some one is profitable at that range and it is usually those who do not properly track and tune their accounts that blindly chase top bid and of course end up on that “loosing side”.

Stotland’s recommendation to be on the winning side: pay more for clicks and “get more value from each click”.

Ways to get more value from clicks?

- “Target customers more precisely” (My View on this suggestion - With MSN’s Demographic Targeting, Time of Day Control and Dynamic Keyword Insertion I feel there are plenty of ways to accomplish this)

- “Improve CTR to increase volume and lower CPC”, (My View on this suggestion - This is a tenant of PPC anyone using Google Adsense or MSN adCenter needs to be very familure with)

- Increase post-click conversions. (My View on this suggestion - Search Engines send traffic it is then up to our sites to convert it the better a job you do here the more power you have in out bidding competitors and ending up on the “winning side”.)

There are a lot of advertisors that constantly complain about quality of traffic, click fraud and other factors but I have found over time that in any niche there are usualy some long term bidders that stay the course for years and always seem to remain in the upper postitions for their selected keywords. They are the ones that never stop improving their PPC Campains and never stop improving their websites and landing pages.

Personaly I feel the answer to the orginal question is no, the PPC Market is not over priced, well, at least not for very long because no advertisor can afford to blow money for very long on a loosing campain. The exception may be VoIP Giant Vonage who seems to be intent on loosing money consistantly in an insane strategy of “Growth Over Profit“.

In most niches that competitor bidding at the top who has been there for the long haul has fine tuned everything to maximize ROI.

My final advice NEVER chase the new bidder that just shows up maxes out a bid, he will  often be gone in no time at all as soon as he burns though his first budget or two.

Always determine your individual Value Per Visitor (VPV) and then stick to that metric, when you do that PPC is honestly always profitable. If that number is to low, tune the account, tune the landing pages and work on increasing it. That burden is on you not MSN, Google, Yahoo or any PPC Based Search Company.

What are your thoughs on rising PPC cost and getting a Good ROI?

Do you feel the market is over price or that it is incumbent upon the individual marketer to know what traffic is worth to them and make efforts to increase conversions?

Or is it a combination of both factors?

~ Jack

Microsoft acquires MotionBridge

Filed under: MSN adCenter — jack at 10:18 am on Thursday, August 17, 2006

Microsoft made an announcement on August 14th that it has acquired MotionBridge , a provider of search technology geared specifically for mobile devices currently based in Paris France.

Microsoft made the official announcment of the acquisition at the 3GSM World Congress in Barcelona, Spain. MotionBridge technology, which is sold to carriers, looks to solve the tedious process of finding and retrieving data on a mobile phone by reducing the amount of information users have to input through keypads.

Besides mobile-focused search, MotionBridge also brings customers to Microsoft, including Orange and O2 Ltd. in the United Kingdom and Sprint Nextel, based in Reston, Va. Microsoft also hopes the acquisition will help it expand its Windows Live initiative beyond the PC to any device attached to the Web. Windows Live is the company’s strategy of eventually making all its software available as a Web service.As current market trends indicate the battle for web search traffic and the revenue that goes along with it will move more and more into the mobile realm. Time will tell if Microsoft’s new buy was worth the investment but at least they are working in the right direction.

~ Jack

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Free Website Hosting and Domain From Microsoft

Filed under: MSN adCenter — jack at 12:47 pm on Monday, August 14, 2006

In their quest to move more into online media and services Microsoft is looking to capture more users by giving away a full web suite to small to medium size business customers. The product which launched about a month ago is called, Microsoft Office Live Beta.

The Service provides the following features for free…

  • Easy-to-use Web site design tool
  • Free domain name and hosting
  • 5 personalized e-mail accounts
  • Storage and data transfer
  • Web site traffic analysis and reporting tools
  • Online Support Help Center

This service has some issues but it is in Beta and it is free. I have started to play around with simple little site about the African House Snake just to fully evaluate it. I did a fairly indepth initial review of this new product at Comtech News you can read that post here….

Microsoft Offers a Bribe - Free Website and Domain and Email

~ Jack

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Microsoft Unveils New Patent - Inspiration for Windows Live QnA

Filed under: MSN adCenter — jack at 9:18 am on Wednesday, August 2, 2006

Microsoft just unveiled a patent application that may be the inspiration for Windows Live QnA, the patent describes a process for removing unlinked documents from a search engine’s index along with an approach for presenting relevant snippets with search results, a means of using cached search results for queries with relevant advertising results, and a query refinement process based upon past user behavior.

With the success enjoyed by Yahoo Answers and similar services it is no surprise that Microsoft has developed this service.

I would surmise that as Microsoft is clearly leading the way with demographic targeting options that QnA will become yet another source of demographic targeting information. While Microsoft seems to get to most of the niches in search marketing later then Google and Yahoo it does seem that they have the best understanding of the value these services represent when the information gathered with them is made available for specific targeting by advertisors.

Here is the abstract from the patent,

“Documents are intelligently deleted from an index of crawled documents based on link and parent node information recorded from the crawl. A document visited during a first crawl may not be navigated to during a second crawl because of an error and the present invention verifies whether the document has been deleted. The present invention also prevents the document from being deleted when it is referenced by another document, indicating that the document is still a valid document.”

Jack

Microsoft adCenter Upgrades - Firefox Support at Last

Filed under: MSN adCenter — jack at 12:44 pm on Tuesday, August 1, 2006

Microsoft adCenter has a new release launching Saturday, August 5th, and one of the upgrades includes the long awaited Firefox browser support.

Which makes a lot of sense because many SEO types and Internet Marketers who work in advertising agencies or internaly for large advertisors prefer the FireFox browser both for the security it offers and the large assortment of Extensions Offered for the open source browser.

We recently recieved an email from Adcenter Support with the following features noted for the comming upgrade:

  • Now, use Microsoft adCenter with the Firefox 1.5 browser!
  • Daily, weekly and monthly data will be updated every hour to help you view results and optimize campaigns in real-time.
  • Select the time frame for which you want your campaign and order summaries to show, instead of viewing them in the life-to-date format.
  • User-interface changes to the reporting tab will make usability simpler.
  • API customers will now have access to more procedure calls. Detailed API communications will be sent to API customers.

These are some great upgrades to adCenter and the added support for FireFox was a smart move all be it a bit late,

Jack

MSN Search to Branch Into Off Line Advertising

Filed under: MSN adCenter — jack at 9:42 am on Monday, June 26, 2006

Microsoft is beginning to plan new ventures into offline media, and is getting ready to deploy a system that would extend its online search advertising model to additional outlets, Joanne Bradford, Microsoft’s chief media revenue officer, revealed Wednesday during an American Business Media conference in New York.

Like arch-rival Google, MSN hopes to extend its paid search platform, adCenter, to a wide variety of outlets, Bradford said. “Our goal with adCenter is to advertise into any medium,” she said, adding that Microsoft’s purchase of in-game ad firm Massive Incorporated and its development of IPTV, a broadband television technology, will further that goal. “This marketplace is begging for some efficiency in the media buying process.”

This is not the first time Microsoft has expressed designs on traditional media. It launched MSNBC with NBC more than a decade ago, and owns a significant minority stake in cable TV giant Comcast Corp.

Microsoft, Bradford said, is looking to make advertising one of its major new revenue streams–possibly even larger than its core operating system business–and the market is ready for a competitor to Google’s AdWords. “The advertising community wants an alternative to Google,” she said, adding that “prices are being driven up way too fast.”

Google started selling print ads earlier this year, but said last week that the initial results were disappointing.

Bradford Wednesday said Google’s print magazine advertising initiative faltered because the search giant “didn’t respect a lot of things about the medium.”

Bradford also indicated that Microsoft was gearing up to compete with Google for employees. She said Microsoft hopes to lure staff from Google when the company’s stock options begin vesting next year.

Why Microsoft Search Will Improve

Filed under: MSN adCenter — jack at 8:40 am on Monday, May 22, 2006

I just read and interesting article at MediaPost.  The article was titled Why MSN Will Move Up and was a pretty good read.  Here are some interesting points made by the author, Bill Wise.

1.  Ad Targeting - MSNs ad targeting has gotten a lot of press but many are quick to point out that the traffic at MSN is still a lot less then Google and Yahoo meaning less traffic for advertisers to buy.  However, with targeting advertisers get better results so even if traffic does not go up a tremendous ammount in time MSN should be able to sell most of its inventory at a premium because it will convert better.

2.  Money -  If you can’t win buy your victory.  While that may not work well in some areas of life in business it is a proven method.  Microsoft spent more on R&D last year then Googles gross revenues!  That says something about their buying and development power.

3.  Content -  The MSN portal is very useful and does a good job of creating sticky visitors, and MSN is constantly investing to make it even better. It’s got lots of content–some that’s created specifically for MSN, some that’s offered via partnerships with other sites, and still other content that’s user-generated. That content features the MSN searchbar–which drives searchers eyeballs to adCenter ads.

These are all issues we have raised here before at “The adCenter Code”  but the author sheds some new insite on their impact.  You may want to read the full article.

He also touched on the concept of integrating adCenter with Xbox but I think it is a bigger deal then that.

WPF/E, or Windows Presentation Foundation Everywhere is positioned to play for dominance in the RIA market. They’re making sure that developers who build applications on WPF can deploy those applications almost anywhere, on any device or OS. Similarly, the Flash Player has rebranded itself since the dark days of skip intro buttons and has become a full fledged development environment with players that will be put on everything from PlayStation Portables to regular desktop computers. Building an RIA and being able to deploy that RIA on a PSP is a compelling notion. Imagine being able to “link” your PSP to your XBox360 and your computer. It opens up the living room in exciting ways.  It will also open up a totaly new advertising opportunity and the ability to begin building demographic data based on users view habits that Nielson can only dream of,

~ Jack

Could We Soon Be Using MicroStats

Filed under: MSN adCenter — jack at 1:08 pm on Thursday, May 11, 2006

Microsoft really appears to be taking the search marketing world seriously in an effort to ensure it can effectively compete with Google and Yahoo. Late last year Google released Google Analytics and if you have been lucky enough to get a copy (the program has a waiting list) you know it is an excellent way to view you web site data and metrics. Google rolled out this service after purching Urchin Software who was of course in the web site tracking business.

Microsoft has followed suit by announcing a “significant investment” in DeepMetrix, a privately held Canadian company that develops web analytics and business intelligence tools for online marketers and publishers.

Having used DeepMetrix products in the past I can state they are very good and quite capable or doing a few things even better then the Urchin Based Google Analytics. Smart marketers tend to use more then one tracking software though and I hope soon to be able to look at stats side by side from what ever MSN rolls out along side Google Stats. The more views into your data the better.

I would say based on past timelines we should expect to see some level of an Microsoft Stats product by fall of this year but that is just my guess. There are two key questions we will be waiting to have MS answer.

1. Will this product be like Google Analytics and be available to anyone not just people that purchase advertising?

and

2. Will Microsoft do a better job of allocation of resources so they can open the product to everyone and not have a closed waiting list? Right now the average wait to get an Analytics Invation from Google is several month.

For those answers we will have to wait. The real question is when will Yahoo snap to needing a good analytics platform?

Jack Spirko

MSN adCenter is Now Microsoft Adcenter

Filed under: MSN adCenter — jack at 2:00 pm on Thursday, May 4, 2006

That’s the news today as Microsoft has taken adCenter live and opened it to all commers they have also changed the name. Visitors to our blog my note that we have followed suit changing our name from “The MSN adCenter Code Blog” to “The Microsoft adCenter Code Blog”.

So what does this big change mean? Not that much, oh Microsoft is announcing a lot with the change such as…

  • Ads Being Displayed on MS Live Mail
  • Ads on Office Live
  • Ads on Office Online
  • Ads on Windows Live
  • Ads on the Safety Center and of course
  • Ads on the Xbox

None of this is really all that new we have reported on it quite a bit in specualtion as to where MSN was headed with its ad program. I think the name change is just meant to give a nice buzz to the new ad program which has been in the works and clearly what was comming for a very long time.

The bigger news is still the Forbes Article about a possible merger or partnership with Yahoo but this seems to be what everyone is talking about anyway. It is going to be interesting to see how much revenue can be created with this new program and opening up these additional traffic channels to Microsoft adCenter advertisers and how it will effect or impact the timing of the release of Microsoft Content Ads which will be the Google adWords / Yahoo Publisher competitior due out from the big MS later this year,
~ Jack

MSN to buy Yahoo - Act 2

Filed under: MSN adCenter — jack at 11:24 am on Wednesday, May 3, 2006

On April 7 I posted Could Microsoft By Yahoo? - 7 Reasons It Could Happen I was pretty clear that it was just my theory and 100% speculation to boot. Now today we seem to have a second (more informed) source confiming that my prediction is not only possible but that talks have been going on for more then a year.

Who is this second source? Another blogger? Nope the source is Forbes.com in their story Microsoft, Yahoo! In Possible Partnership Talks.

One of my key points in my orginal article was that Yahoo and Microsoft both bought large ammounts of land to develop just down the street from each other in Rural Quincy Washington (hundreds of miles from any existing point of presense for either company). I stated in fact,

The fact is either the city of Quincy has one of the best public relations departments in the world that just landed two of the biggest global companies at the same time solely on their ability or the two companies have something going on behind closed doors. You tell me which one seems more likely“.

If Forbes or another source can in time fully confirm these talks I think perhaps that indeed this partnership talk may have driven the decision of the two giants to both select the same tiny small town for major development.

As we look into the future of search mergers and acquisitions are going to become a common thing that drives growth of market presense. Yet for the second and third largest players to have any type of merger will have a massive long term effect on the market.
~ Jack Spirko

MSN Search Ignores the rel=”nofollow” command

Filed under: MSN adCenter — jack at 1:06 pm on Friday, April 28, 2006

Recently I was checking out some sites I have given links to from some of my personal sites. A few I had used rel=”nofollow” on which is supposed to tell spiders to not follow a link. Part of this is to help link spam like in blog comments so you are not pirated for your page rank by spammers.

In any event I found myself being shown as a back link on MSN Search. Both Google and Yahoo appeared to respect the nofollow tag but not MSN. I will post more about this as I dig deeper just for right now it is clear doing a rel=”nofollow” doesn’t seem to effect msn search,

Jack

Steve Berkowitz to Run MSN Online

Filed under: MSN adCenter — jack at 10:24 am on Monday, April 24, 2006

“On Friday MicroSoft announced that it has hired away InterActive Corp search head Steve Berkowitz to lead its Online Business division, which includes MSN and Windows Live.

Berkowitz will replace David Cole on May 8, who announced he would be taking a leave of absence in March. In an e-mail to the Microsoft Platforms and Services Division Friday, Berkowitz’s new boss Kevin Johnson told employees that he had the right mix of experience and a “deep functional knowledge of the search.”

Read the entire story at BetaNews 

Thougts on a Possible Microsoft Purchase of Yahoo

Filed under: MSN adCenter — jack at 10:54 am on Wednesday, April 12, 2006

A few days ago I posted

Could Microsoft Buy Yahoo? - Seven Reasons it Could Happen!

I posted about it at The Search Engine Watch Forum and this was the response one poster had.  I found it interesting and from a clearly informed party so I though I would share it here.

MSFT could easily buy Yahoo. Yahoo has a market cap of roughly 45 bil. and MSFT has 34 bil. in cash.

Give YHOO a 50 percent premium and you have roughly 67 bil. price tag.
MSFT will not give up all their cash to secure YHOO but they could easily put up 20 bil. and float some stock to secure a deal.

They would approach 30 percent of search and would have enough cash left to outbid Google by giving 100 percent of publisher share on content search.

In a protracted war Google would lose. Their share price would fall, institutions would pull their investments and Google would be forced to issue more shares just to keep itself funded.

That being said I don’t think Gates has another war in him.

The poster identified himself only by the handle “webvisitor” so at this time I can’t credit him any better then I have done here.  I found two things to be the most interesting about his commentary.

1.  The math behind the fact that the buyout could happen.  I mentioned this in my post, however he broke it down to specifics to demonstrait exactly how it could be done for above par market value.

2.  More interesting his comments on the effect it would have on Google.  I of course had thought of how it would effect the search landscape but what I really had not pondered is the effect it would have on Google stock, given how high it is currently trading.

On his last comment, “That being said I don’t think Gates has another war in him”, I personaly don’t feel that while he may be right that it has too much of an influence on if there will be a “war” or not.  Bill has plenty of Generals and Soliders to fight any wars for him.  Besides if Microsoft didn’t want a search market share war they wouldn’t be in the game at all.

Jack Spirko

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