Bing & Yahoo deal will change how you do online marketing

A search deal struck between Microsoft and Yahoo! has been officially confirmed by both companies. As expected, Microsoft will power Yahoo Search while Yahoo! will become the exclusive worldwide relationship sales force for both companies’ advertisers.

  • This is a 10 year agreement
  • Microsoft will acquire an exclusive 10 year license to Yahoo!’s core search technologies, and Microsoft will have the ability to integrate Yahoo! search technologies into its existing web search platforms
  • Yahoo! will continue to syndicate its existing search affiliate partnerships.
  • Microsoft’s Bing will be the exclusive algorithmic search and paid search platform for Yahoo! sites. Yahoo! will continue to use its technology and data in other areas of its business such as enhancing display advertising technology.
  • Each company will maintain its own separate display advertising business and sales force.
  • Yahoo! will become the exclusive worldwide relationship sales force for both companies’ premium search advertisers. Self-serve advertising for both companies will be fulfilled by Microsoft’s AdCenter platform, and prices for all search ads will continue to be set by AdCenter’s automated auction process.

Previously, Bing and Yahoo! each holds no more than 15% of the market share, after the deal Bing now holds about 28% of the market share (AdAge). What does this mean? This means that optimization for Bing is now worth your effect, a lot more than it was before the deal.

1. Bing’s algorithm concentrates on keyword use in subdomains and root domain names (Google loves exact keyword matches, but Bing really likes any keyword placement in the sub or root)

-> if your domain does not contain your main keywords, you may lose out to your competitors (yes, we ourselves are losing out on this issue)

2. Bing’s results are, by default, “richer” than those of Yahoo! and Google. Bing also surfaces only the top 5 results for many queries, meaning a higher concentration of clicks on those top results.

-> if you advertise on Bing you can expect higher click through rate (CTR)

3. Either due to the result of demographics or of how the engine frames information isn’t clear, Bing’s traffic is, in general, also more likely to convert and click on ads.

-> Bing has a different user base, so depending on your target customer base you may want to try out Bing PPC ads.

4. With greater search share comes greater spam attempts. Google’s still a ways out in front in terms of catching and discounting manipulative practices.

-> Your competitors may find (dirty or not) ways to get ahead of you on Bing’s search result. Better be careful here and watch the market closely.

5. Yahoo! & Bing Local Become More Essential. At of now Bing is also serving up local listing in their search results.

-> If your business is local, you better check Bing Local and register your business now .

(This article sums up a few important points that this deal will affect the normal business owners. Most data in this article comes from seomoz.org)

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