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Discover the 3 reasons why Microsoft enters the market of ads search engine

Microsoft announced last week that it had developed its own set of text ads on search results MSN Search. According to Microsoft this system is much better than its rivals Google and Yahoo as it will serve ads based on gender, age and location of the user.

There are three clear reasons why Microsoft is conducting this movement:

  1. For Microsoft, Google is becoming a real threat. Thanks to the revenue that Google is getting its adwords, they are funding many initiatives in the field of programming with free software and applications that have little to do with Windows and compete directly with Microsoft products, such as Gmail vs. Hotmail.
  2. It is obvious that the market for text ads included in search results is a great source of income. Google is a living example, has announced a net profit of 342.8 million dollars during the second quarter 2005.
  3. In a way, for some years, MSN has been forced to share revenue with YahooOne of its main competitors. Until now, the ads MSN offers on its website are offered by Overture, a company that since March 2003 belongs to Yahoo, so Yahoo gets a commission for each sale of MSN.

According to Microsoft the service they offer will be much more attractive than Google and Yahoo for advertisers because it will provide segmentation by gender, age, location, user, time display ads and other parameters that Microsoft knows about its users.

Microsoft has been latecomers to the world of search engines, but it looks like it is doing completely, but step by step and not risking.

MSN Bot

El primer movimiento fue en verano 2003 momento en que lanzó su recién programada araña MSN Bot a escanear toda la red, cuando en sus portales aún utilizaba el buscador Inktomi (propiedad de Yahoo desde ese mismo año y por el que Yahoo pagó 235 millones de dólares). Durante 2003 Yahoo ingresó gracias a MSN 5,3 millones de dólares por el uso de su buscador.

A mediados del 2004 Microsoft lanzó la versión beta de su propio motor de búsqueda y a finales del 2004 dejó de utilizar definitivamente Inktomi, para pasar a ofrecer sus propios resultados de búsqueda. Desde entonces lucha por posicionarse entre los mejores portales de búsqueda. Aunque el mejor activo de MSN Search no es su algoritmo de ordenación de resultados (como lo es en el caso de Google) sino el hecho de que muchos de los usuarios de Windows no saben cómo cambiar la página de inicio de sus navegadores de Internet, ni tampoco cómo cambiar el motor de búsqueda que el MS Explorer lleva instalado por defecto. Así que no es de extrañar que MSN sea la web número dos del mundo en tráfico (la uno es Yahoo, la dos MSN y la tres Google).

After getting your own search engine, the next logical step is to exploit Microsoft itself the economic potential offered by search engines and that Microsoft has failed to see until Google and Yahoo have been presented every year positive economic results.

It seems that the first sites of Microsoft in testing this new ad system will MSN MSN Singapore and France. Then, it will spread to other countries.

We will be watching when this occurs, to perform segmentation and analysis of acceptance and subsequent expansion of the MSN network of advertisers.

Links:

Alexa Ranks (http://www.alexa.com/site/ds/top_sites?ts_mode=global&lang=none )
World Ranking Web by number of visits and page views.