YAHOO + MICROSOFT = BIG SEARCH ENGINE MARKETING BUZZ

The month of February is full of surprises in the arena of search engine marketing, but perhaps the biggest surprise of them all is Microsoft’s bid to take over Yahoo! Why is this buzz so big? That is because the bid Microsoft made for the venture carries a big price tag – a hefty US$44.6 billion. That is not an amount that is bandied about in the world of search engine marketing everyday.

In fact, many experts within and outside the world of search engine marketing are quick to recognise the possible merger between Yahoo! and Microsoft to be one of the biggest in the recent history of the industry, right after the one that happened between Time Warner and AOL. The questions that are doing the rounds of the business circles both within and outside the world of search engine marketing are these:

Will Yahoo! eventually give in and bite the offer posed by Microsoft?
Will this play by Microsoft pay off and give it some leverage over the search engine giant Google?
How is this possible merger going to affect the way search engine marketing is done?

Many insiders in the search engine marketing industry believe that Yahoo! has only a few cards left up in its sleeve to continue playing the game and is slowly running out of choices. Whilst Yahoo!’s online real estate properties are still the most visited websites on the Internet, in particular Yahoo! Mail, Yahoo! Finance, and Yahoo! Answers, this dotcom pioneer has not been doing very well in recent years. Profit margins are low and some of its ventures, such as the ones on the entertainment scene, are not performing as they were expected to.

Analysts in the search engine marketing industry are right in saying that never more has this time been the right time for Microsoft to try to snap up Yahoo! and its properties. Microsoft certainly has the money to do it, and Microsoft can definitely use online advertising portfolio possessed by Yahoo! and the savvy that is so characteristic of the services that Yahoo! offers its users.

But would this strategy by Microsoft be enough to shake the foundations of the mountain upon which Google sits? Most search engine marketing experts think that this move is probably not even going to make Google sweat. Many analysts in the search engine marketing field are one in thinking that Microsoft may attain the numbers it needs in acquiring Yahoo!, but it will not be enough to surpass the experience and the smarts that Google possesses when it comes to online advertising. And it is in online advertising that the money lies.

If it does happen, how will this merger between Microsoft and Yahoo! going to affect the way search engine marketing is done? Whether this merger is going to push through or not, the only solid thing that is going to happen to the world of search engine marketing is that people would have a more serious choice other than Google. Choice is the one leverage that we have in this game.

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