EDITOR’S NOTE: During the writing of this week’s newsletter, Yahoo announced a new search interface, one that incorporates multiple types of searching into one. This directly competes with Google’s interface (and then some), even more indication that the Yahoo-Google relationship is likely to part ways in the upcoming future. For the link to preview the new Yahoo Search, please read through to the bottom of this week’s article.

Over the past few weeks some major events have rocked the world of search engines, all of which are likely to effect we online marketers, so we wanted to bring you up to speed. The big three Internet search destinations — Google, Yahoo, and MSN — have been making waves while the number one search result syndicator, Overture, has been gobbling up lesser search engines to also fortify its might. One thing seems for certain: everyone’s out to get Google.

Yahoo Inks Inktomi

When Yahoo announced its plans in December 2002 to acquire search data provider, Inktomi, it was likely taking square aim at killing two birds with one stone. Yahoo, which ousted Inktomi in favor of Google and only recently integrated Google search results into its own famed human-edited categorical listings, may use the acquisition of Inktomi to now oust Google. Google, after all, is seen as direct competition to Yahoo as Google continues to add its own features and nabs more and more of Yahoo’s audience share.

Yahoo may also see the Inktomi acquisition as a way to generate more direct revenues through Inktomi’s paid inclusion service and perhaps even as a means to create its own paid search listing solution to compete with its current partner, Overture. Yahoo also benefits from the Inktomi acquisition because Inktomi’s salesforce has more experience working with the small and medium sized business market.

According to a Yahoo press release, this acquisition will allow Yahoo “to create one of the most relevant, comprehensive and highest quality search offerings on the Web for both our affiliate partners and Yahoo!” Does this mean that Yahoo has plans to distribute their new search results much the way Google currently does?

Is MSN Drifting from Overture?

Microsoft, too, has recently announced that it is taking steps to provide better MSN search services. Some speculate that MSN is looking to end its dependency on Overture paid results by bringing the offering in-house once the MSN-Overture agreement ends in December 2003.

Overture’s stock price has suffered as a result of all this industry speculation. Overture has countered, saying that it has a “strong and growing relationship with Microsoft,” and that it recently has signed a new multi-year deal with MSN Korea…but only MSN knows for sure what the future holds.

Overture Acquires FAST and AltaVista

Overture, always an aggressive pioneer, is on the offensive. Making big news of its own, in February 2003 Overture announced acquisitions of both one time big fish AltaVista and FAST Search/AlltheWeb. Overture believes that these acquisitions will help move it past paid placement advertising into both a paid search inclusion product and algorithmic search destination. Paid search inclusion, such as what Inktomi offers, is when a site pays a fee to be routinely visited and re-indexed, particularly a plus for sites with dynamic content.

Does this mean that Overture has plans to revive the AltaVista brand into a respected search engine once again? FAST, while respected, has always taken a backseat to Google and Lycos, another search engine. If Overture does loose their Yahoo and MSN accounts, will this hypothetical master plan come close to replacing the lost revenues?

Google Expands AdWords and Partners with Amazon.com

In addition to steadily building itself into one of the Internet’s top players through the excellence of its search results, Google has also become one of the Internet’s top advertising revenue generators. Its popular AdWords are now syndicated to at least half a dozen search engines, and in early March 2003, Google has announced it will be also be syndicating AdWords to other top content web sites (“Google’s Content AdWords”).

Google’s partnerships now extend to such sites as Knight Ridder Digital properties (San Jose Mercury News, Detroit Free Press, Miami Herald, Philadelphia Inquirer), Walt Disney Internet Group Web Properties - Disney.com, FamilyFun.com, Go.com and Movies.com, and online advertising networks such as Burst Media and FastClick. Google has taken this same concept to Amazon.com. In all cases, Google’s Content AdWords serve text ads dynamically on sites where the ad is supposed to be relevant to the page content. The verdict is still out on exactly how well these ads will perform.

What does this all this search engine turbulence mean? Will all popular sites become search engines and search engines become just channels of distribution? And what about paid search? Will “organic” search results even exist in the future? If the predictions become fact, the field of search might be narrowed down to just four totally separate and independent web entities: Google, Yahoo, MSN, and Overture. It seems as though the pace of Internet consolidation has not slowed any.

Related WebAdvantage.net Articles:

Google AdWords - Search Engine Advertising That Makes Sense
Driving Search Engine Results - Does it Pay to Pay?

Related Links:

Yahoo’s New Search
Scenario Analysis of Yahoo’s Acquisition of Inktomi

 

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