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Microsoft Online Bleeds leaving Google Search Unscathed February 15, 2010

Posted by Glenn Irvine in Analysts, Blog, Commentary, Competitive, Futuring, Media.
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While a lot of the online community is a-buzz at the moment with Google’s latest distraction, the underlying battle for mindshare in the online World is perhaps better demonstrated by the recent posting of Microsoft’s Online Business losses.

As reported in CIO Magazine today, “This division has been losing hundreds of millions of dollars for two years (it reported a $466 million income loss for the last three months of 2009)”. Much of it due to the increased cost of gaining traffic. (Purchasing traffic through promotions and deals).

eg. the $10M USD recently spent to gain access to Twitter feeds mentioned in my recent post “2010: The Google v. Microsoft War to Intensify

And during all of this they haven’t greatly touched Google Search’s business, mostly cannibalising the Yahoo Search marketshare instead.

With the Microsoft/Yahoo search partnership threatened by this performance, how much more will MS be willing to wear before they reconsider the strategy?


Glenn Irvine