If you’re Microsoft Corporation, what do you do to challenge Google’s dominance in the online advertising industry?
You acquire another search engine, albeit struggling, company such as Yahoo!.
That seems to be Microsoft’s plan when it submitted an unsolicited takeover bid of $44.6 billion.
The offer of $31 per share is a 62% premium to Yahoo! stock’s closing price on Thursday. Yahoo climbed $10.40 a share, or 54%, to $29.58 in premarket trading after the announcement.
Microsoft said the booming online advertising market “is increasingly dominated by one player” — a reference to Google — and suggested that by acquiring Yahoo, it can be “better positioned to compete in the online services market,” said Microsoft’s chief executive officer Steve Ballmer.
Yahoo issued a statement saying it will “carefully and promptly” study Microsoft’s bid.
If the acquisition pushes through, Google will definitely see a new competitive threat in the form of Microsoft-Yahoo. Google’s dominance of the online advertising market will be challenged because an alternative will then exist.
What does it mean to local bloggers who rely on Google Adsense income?
They will most probably be negatively affected and their earnings lowered because advertisers will now choose to diversify their online advertising expenditure. If previously they only used Google, they will now think about using the Microsoft-Yahoo network for online advertising too. That shift will cause a blow to Google’s bottom line and, eventually, to the income of Adsense publishers as well.
The only way to beat this is to continue building one’s Adsense income (which is becoming more and more difficult to do these days) or be part of the new Microsoft-Yahoo Publisher network that will emerge.
Is the Microsoft-Yahoo merger soon to become a reality? Watch out.
Microsoft-Yahoo to merge vs. Google?
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This is bound to happen. and true enough, the bad thing that can happen to new bloggers like me is a probable huge potential drop in adsense earnings.
True, that’s why we need to look for Adsense alternatives. Otherwise our earnings will surely be affected once the Microsoft-Yahoo partnership becomes a real formidable threat to Google’s dominance in the online advertising industry.
Kuya J!
Great post! This would be a very interesting milestone. Im pondering on the effects it would make to us bloggers. more opportunities perhaps?
BTW,
Its kirby from kirbitz.blogspot.com I just bought a new domain and started it just this week. Im hoping to apply what ive learned in 6 months free blogging and share it not only to other teens but to other Pinoys as well.
*keeping fingers crossed*
Hi Kirby, first, congrats on your new domain. Pinoy Money Blogger! The title alone is a sure-fire way to attract visitors. Hope you indeed find success in blogging and hope to read more stories about blogging there.
True, should a Microsoft-Yahoo merger push through, it will definitely give bloggers more opportunities. But whether it will be available to Filipino bloggers, that’s another story. For one, Yahoo’s Publisher Network (counterpart of Google Adsense) is not offered to Philippine publishers yet. I’m not sure whether this will be opened to other countries like ours if and when Microsoft buys Yahoo.
hah! This will be interesting! Will Microsoft really be a contender against google even if it bought Yahoo?
This is such a superior idea. A friend of mine sent me your url. It’s such a fantastic way to engage readers offline and get physical mail which everyone loves. I may need to do this after my blog is up and running a bit more.
Hey Eric. Many thanks for including my PSD templates. 🙂