Let’s look at the math:
Microsoft does not understand search monetization.
Yahoo does not understand search monetization.
Combining the two does not mean they suddenly will. The only company laughing at all this is Google…
I’ve written extensively about how to improve search monetization but both Microsoft & Yahoo place both internal and geographical politics above efficient business (running separate bidding marketplaces per country). As long as merchants are making considerable returns from Google – they are not going to use their valuable time on other search engines. Ok, so perhaps this merger will now improve return on effort for running MSN/Yahoo campaigns by combining the traffic, but it’s still a long road ahead for the combined company if it continues to focus on running multiple bidding marketplaces.
On a lighter note, I heard a great joke today:
What do you get when you merge Microsoft & Yahoo? Microsoft
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