Bing-powered Yahoo search: What's the impact on Google?

Bing-powered Yahoo search: What's the impact on Google?

Summary: A Bing-powered Yahoo is clearly a threat to Google's bread and butter. It's time to buy a new loaf of bread.

SHARE:

So it's a done deal. Yahoo! acknowledges that one of the original search engines can't figure out how to do search well enough to compete in the 21st century. Which basically leaves Bing with almost double the search market share that it had last week and leaves Yahoo! as a content portal. The entire idea of a content portal seems like an anachronism of AOL proportions to me, but maybe the good folks at Yahoo know something I don't. Whatever. What intrigues me is how this will impact Google which still has roughly twice the search market share of Microsoft and Yahoo combined.

However, today's announcements of Google Voice integration with Gmail and even their quieter announcement of new features in Google Apps suggests that Google is far from resting on its search laurels.

Google makes its money on search. Everything else is gravy for the company and, in many cases, its non-search products lose money for Google. Threats to the company's fledgling search in China, competition from social media sites, and now the combined strength of Yahoo! and Bing mean that Google is no longer able to assume that it will be the dominant player in search (and therefore, search-driven advertising revenue) and will need to convince advertisers that it has other ways of attracting user eyeballs to those ads.

So to answer my original question, what's the impact on Google? The impact on Google, in fact, may not be that substantial, at least in the short term. However, neither Yahoo nor Microsoft have any significant mobile presence, making Android even more important to the company's long-term prospects and providing a major competitive advantage. Similarly, Google SaaS offerings will continue to mature. While Google Apps is hardly a cash cow, anything that can make users more vested in Google's ecosystem achieves the goal of driving eyes to Google's monetized properties.

Finally, whether it's through voice, games, or some evolution of Google Wave, Google will make the jump into social in a big way. Nobody outside of the Googleplex is entirely sure how this will take shape, but if we view Google's core business as advertising and we look at threats to its core search business, then social will necessarily be a major driver for its core business going forward.

Will Google still dominate search in 10 years? Maybe, maybe not. I doubt, though, that search will remain its primary source of revenue when there are so many pieces of Internet communication and collaboration into which the company continues to insert itself at ever-increasing rates.

Topics: Cloud, Browser, Collaboration, Google, Social Enterprise

Christopher Dawson

About Christopher Dawson

Chris Dawson is a freelance writer, consultant, and policy advocate with 20 years of experience in education, technology, and the intersection of the two.

Kick off your day with ZDNet's daily email newsletter. It's the freshest tech news and opinion, served hot. Get it.

Talkback

11 comments
Log in or register to join the discussion
  • Bing is moving up in mobile in a big way

    They have a great iphone app thats taking iphone search share away, they have a great android app, and they'll have 100% search share in Windows Phone which will pass both iphone and android mobile share in 3-5 years.
    Johnny Vegas
    • Windows phone will pass both iPhone and Android in 3-5 years?

      I guess you weren't paying attention to the debacle that was Kin, which made Microsoft Bob look like a resounding success. Eventually Microsoft, being Microsoft, will settle into some measurable market share in this particular vertical market. And being Microsoft, that position won't be #1. It'll probably be more like #3 or #4. That's the reality of Microsoft ouside of the OS and the office productivity suite. As a technolgoy company, you can't be King Ding-a-Ling everywhere. AT&T tried, now look where they're at. IBM tried, now look where they're at. Microsoft already got slapped down by the courts once for illegally leveraging their dominance in one market to kill competition in another and the more they push into new vertical markets the bigger the target grows on their back. Don't fool yourself into thinking Microsoft even wants to be #1 in the mobile market. They have people internally who smart enough to recognize this paradigm.
      jasonp@...
  • RE: Bing-powered Yahoo search: What's the impact on Google?

    The impact is Bing and Yahoo taking a giant chomp out of Google's markets.
    Loverock Davidson
  • King of Search in 10 Years

    If my memory serves me right, Yahoo! was the king of search 10 years ago. Just sayin'.
    dunraven
  • RE: Bing-powered Yahoo search: What's the impact on Google?

    "how this will impact Google which still has roughly twice the search market share of Microsoft and Yahoo combined"<br>Come again? I'd say it's more like TEN TIMES the search market share of Microsoft and Yahoo combined.<br>Unless, of course, you're talking only about the search market share inside the borders of the U.S. of A. (without explicitly saying so), dismissing over 85% of the world's Internet population (<a href="http://www.internetworldstats.com/stats14.htm" target="_blank" rel="nofollow">http://www.internetworldstats.com/stats14.htm</a>)
    city_zen
  • City_zen is right on the mark :

    according to StatCounter, [b]Google[/b] enjoys a search-engine market share worldwide of over 91 % (http://preview.tinyurl.com/37kyc9z ), which doesn't leave much place for either [b]Yahoo[/b] or [b]Bing[/b]. As a matter of fact, the situation in the United States isn't all that different, with [b]Google[/b]'s market share over 82 %. What effect mobile apps will have on these market shares, however, is something only the future will tell....

    Henri
    mhenriday
  • Yahoo Japan uses Google

    Subject line says it all.

    EHK
    ehk@...
  • RE: Bing-powered Yahoo search: What's the impact on Google?

    World is a living system, any threat to it will be interpritted and eliminated. Google is proving that it is becomming a problem to the system, its end is inevitable.
    Ziyan-Junaideen
  • RE: Bing-powered Yahoo search: What's the impact on Google?

    @dunraven

    If MY memory servies me right in 1980 Tandy (radio shack), Exidy, Apple, Commodore. (no microsoft in sight).

    Later on, if my memory servies me right, in the later 80's Novell Netware was the king of networking, SUN Servers were the king of servers, Cisco was the black sheep of servers but still high in the Royal family.

    So yahoo was king of search, good for them, mabey they will be again, and mabey the big players will go the way of Radio Shack and Commodor..

    Things change, markets change, consumers change, and companies sometimes change and sometime dont change when they should.

    Some win some lose, some just flow along and accept that its better to have more than one player in the field to promote competition and for consumer choice.

    This is not a competition between Google and Yahoo, its a competition for the creation of products and services that will WIN CLIENTS.

    So what if Google is doing a great trade, if Bing is also doing a great trade, that to me is better than, one giant and one struggling.

    Its not like the possible client base for those services is small !!!..

    There is more than enough clients for all !!!!..

    So make your products and services what they want and watch the money roll in.
    Aussie_Troll
  • Google-the bigges spyware in the computing world...

    People are so stupid...
    transposeIT
  • Google-the biggest spyware in the computing world...

    People are so stupid...
    transposeIT