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February 7, 2005

Welcome to the Search Wars

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Posted by Adam Viener

Microsoft has recently launched their new search engine and already pundits are questioning the amount of advertising for each search.

The bulk of the latest release revolves around Microsoft using it's own spider to identify relevant organic search results, brining MSN Search one step closer to owning 100% of their product.

On the paid search side, they are still running the bulk of their pay-per-click ads through Overture. Recently they extended their deal with overture until June of 2006.

Besides using Overture's paid search, MSN also offers up to 3 available spots on any search for featured sites willing to pay a minimum of $75,000 per year.

When you look at these moves and Microsoft's recent aggressive use of head hunters to build up their own internal search department, it clearly spells that Microsoft is targeting their full force behind search.

I think we will quickly see search being an embedded feature of the next operating system and quickly Microsoft will replay the browser wars on the search space.

Authoritative rumors have it that Google turned down a Microsoft buy-out proposal prior to the Google IPO. It will be interesting to watch how the search war plays out and if Google can do better than Netscape did in the Browser war.

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