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« A New Kind of Zoo | Main | What is Yahoo Doing? »

December 14, 2006

Comments

Jawad (Shuzak)

Great insight. As leaders in the market, Google is in a defensive position. If this is indeed a zero-sum game, as Steve Balmer would like us to believe, then Microsoft has no option but to push its war machine on the offensive. But by worrying more about revenues and less about market share, Microsoft is headed towards an inevitable turmoil.

It doesn't take a genius executive to realize that cash is king. If Google offers more cash, I will switch to Google. If AdBrite offers more cash, I will switch to AdBrite.

It is a shame that Microsoft needlessly gives away its ground.
Jawad Shuaib

DC

Hi Baris,

This is a great post, and there are a couple of ancillary take aways from MSFT's comments. The first possibility is that Google's AdSense TAC must be so high on publisher ads that MSFT realizes that there is no room to beat GOOG just by driving up TAC. Another possibility is that GOOG's market is so liquid due to the massive amoung of publisher inventory (which in turn drives the massive amount of advertisers) that the eCPM's that they can drive to publishers coupled with aggressive TAC has already become insurmountable. Given that the second possibility should have already seemed fairly obvious to other companies in the market, it's surprising that MSFT has chosen to attack Google 'head on'. If you know they have hegemony in the contextual text advertising marketplace, why would you attack them in that marketplace instead of innovating around new kinds of ad marketplaces (eg, RightMedia's open exchange approach, or a rich media marketplace in which goog is still in its infancy, or a demand generation network not tied to Direct Marketing, there are hundreds of opportunities). If you're Google, you HAVE to like the answers that microsoft provided at this event. Shocking, frankly.

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They are tools that help increase traffic for MSN.

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But does not true that Google is more consolidated than Microsoft?

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excellent information I enjoy the reading, oh and by the way, beautiful baby!!
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cool site!!!!
and yes beautiful baby!
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you are damn proud of her is it? I have a two years old boy, and he is y life!
XD
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I have children too!
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This was shocking, I thought, for sure, Microsoft would start by making publishers more money.

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I visit their ad center once per week!! a nice one.

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