Microsoft Bid to Beat Google Builds on a History of Misses from the Wall Street Journal has a very detailed look at some of the mistakes Microsoft made early on in the paid search space. The piece goes through the failure of Microsoft’s original keyword ad platform, named bCentral Keywords, which was discontinued in early 2000. It then discusses the fact that they did not purchase Overture, which Yahoo acquired in 2003. Followed by the failed attempts at buying Yahoo this past year.
Yes, we all know Microsoft has made many mistakes in the past with search opportunities. But the most interesting pieces of the article is that Ballmer still wants the deal with Yahoo. It is also very interesting to see that Microsoft’s new search ad platform, adCenter, was code named “Moonshot.” Many advertisers love the feature set within adCenter, so the technology is not the reason adCenter is not competing. As Andrew Goodman notes, it is about market share. Advertisers go where the customers are and the customers are at Google, not Microsoft.
Microsoft efforts to pay people to search through programs like Live Cash Back, all dozens of vertical engines all aimed at winning prizes, cash and so on – are some of the few ways Microsoft hopes to gain some share from Google’s pie.
Related Topics: Microsoft: adCenter | Microsoft: Business Issues
As a start-up guy, I love seeing big companies suffer when they pass on the opportunity to buy an early market innovator. Microsoft bought our last company (Jellyfish.com) to form their cashback service. I hope that decision turns out better than their decision to take a pass on Overture. You can read more thoughts here if interested: http://flywheelblog.com/2009/01/make-versus-buy/