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Through many negotiations, Microsoft and Yahoo announced a number of cooperation in the search engine market. Yahoo will use Microsoft technology for all its search engine assets, while it is also responsible for online ads sales for both side platform. From this 10 years co-operation, Microsoft can exclusively access to Yahoo search engine license, and Microsoft can also integrate yahoo technology with its own.

From Revenue-sharing agreement based on the two sides, Microsoft will pay Yahoo for the traffic generated by Yahoo Website; Yahoo is expected to increase 500 million U.S. dollars annual revenue and cash flow of 275 million U.S. dollars, while saving 200 million capital expenditure.

“The cooperation will benefit our clients and industry greatly” Yahoo CEO Carol Bartz said in a statement. “I believe this cooperation laid the foundation for innovation and development of the Internet into a new era” Bartz said.

Microsoft and Yahoo have more than a year to discuss cooperation, at beginning Microsoft plan to buy Yahoo, and this request was refused by Yahoo’s CEO Jerry Yang. However Jerry Yang was been removed from the board of director and replaced by Bartz, hence triggered this negotiation for cooperation.

Microsoft CEO Steve Ballmer also commended the cooperation between the two sides will benefit Microsoft’s new search engine www. Bing.com and great opportunity to challenge current top 1 search engine giant, Google.

“Through the cooperation with Yahoo, we will be able to develop more innovative search technology to benefit our advertisers, and also to provide more market choose for consumers beside Google.” Ballmer said.

“The success of search engine businesses needs innovations and users scale, our search platform www.Bing.com provides a breakthrough innovation. And the cooperation with yahoo will provide the scale we need for the rapid development on relevance and the availability”

Based on ComScore’s survey, Google currently holds the 65% of search engine market in US, Microsoft only has 8% and Yahoo has 20%.

Edited By Henry Lu

For the booming market of mobile internet, not only hardware industries, but also many online service providers actively try to grab this market. Yahoo, with monthly 500 million unique visitors not only want be a world biggest global internet portal, but also try to be the integrator of online services and make internet users rely on it completely

During April this year, yahoo announced its new personalised mobile homepage with combination of oneSearch, oneConnect and onePlace which these three online services are used as the search engine, social network and LBS (Location Based Service) for the individual.

According with their own personal preferences and needs, users can add various internet services (including services not belong to Yahoo) into their own homepage, and this service is able to support more than 300 kinds of devices.

Support hundreds of different devices

Marc Davis, Yahoo Chief live action Scientist explains its core strategy of mobile communication:

“We will not focus on hardware or operating system development, but to create a platform, a layer to provide services for thousands business and industries.”

For Yahoo, the “size” is obviously the focus of considerations, and through the strategy of use universal platform to achieve the purpose of provide services for global users. Davis said that Yahoo’s software will be covered by the mobile browser and application software (client) to support for hundreds of different devices.

Yahoo said: through the centralized management strategy by the new executive director Carol Barts, we greatly reduce the time for new product development. And for Asian market, Barts is full of confidence:

“The next five years, there will be masses of users come from Asia this emerging market.”

Now this area is either on the turning point of pc based internet to mobile based internet, or have the low rate of computer penetration. In comparison to Europe and the United States, Many Asia industries still not ready to transfer their advertising budget from traditional media to the internet, which also represents the great potential of the Internet advertising market to be developed in future.

Edited By Henry Lu

IT industry testing released the report says the growth rate of Microsoft search engine Bing.com already run ahead of rivals since his launch on May this year.

Microsoft new search engine provides many search services. According to data released by Hitwise showed that, the growth rate of Bing.com reached 25 percent in June. But however, its
U.S. market share is still only 5.25 percent.

This new search engine attracts the close attention of media. Microsoft plan to spend 100 million U.S. dollars to promote Bing.com, and intends to take the territory from Google, the current number one search engine company.

However, Google still remains the dominant position of the U.S. market with 74 percent market share. Yahoo still has the second largest market share of 16%. Ask.com has fourth place with 3.2 percent market share.

Analysts said that, the growth rate of Bing.com is faster than the other three well-known search engine companies. And Microsoft hopes Bing.com can grab more market for online ads.

On Thursday’s stock trading, Microsoft shares fell to 22.44 U.S. dollars. And Google rose 2% to 410.39 U.S. dollars.

Edited By Henry Lu

The well known USA online shopping website Amazon may stop its Alexa search engine on next year January. Beside, the service has stop to accept the new user application, but the current users can still use the service till 26-January next year.

Many people wonder about why Amazon has to stop its Alexa search engine? According to the Amazon official, it is because the use rate of search engine is too low, and most US internet users use Google, Yahoo and Live search from Microsoft as their primary search engine look for products and information.

Edited By Henry Lu

Yahoo released their new display advertising platform, their ambitions towards online advertising campaign was revealed once again. Fortune Magazine pointed out that this effort may be the final plunge of Yahoo CEO, Jerry Yang.

This new display advertising platform is called “APT”, it allowed the publishers and advertisers to put the traditional online advertisements, like banners or pop-up windows on hundreds of news websites, all the websites under Yahoo, and other big websites like eBay, WebMD in US.

New York Times said that, to the advertisers, APT is easier to use. In the past, normally advertisers had to purchase the advertisements from the individual websites and if they want to play their advertisement online, it is also very difficult to control where the advertisement will appear.

However Yahoo promised that, under APT system, the advertisers don’t need to negotiate with the website one by one in order to put their online advertisements. This system may not only help the news sites gain the benefits from online advertisements but also display the advertisement to the visitors according to their own searching habit and interests.

Jerry Yang emphasized that APT will change the whole environment of online advertisement industry. He has great confidence that APT will stand in the leading position in this revelation and Yahoo indicated that through this advertising platform Yahoo and newspaper can sell the advertisements in higher price and they can display the advertisements to certain customers groups. Yahoo wishes to sale search engine advertisement on APT in the final stage as well.

Currently, the prospect of Yahoo online advertisement market isn’t really bright, however APT seems bring a gleam of hope to Yahoo.Since the acquisition negotiation with Microsoft was broken in the beginning of the year, Yahoo has received great pressure. From the middle of July till now, the stock price has decreased 16% and now it reached to around 19$.

Recently, Jerry Yang has received some objections from company top officials and Fortune magazine said that they don’t think APT would help much in this situation.

However, e-Marketer senior analyst believed that any new method which works in displaying advertising worth to try. “The reason why paid search advertising can have such great profits is because it is easy to purchase relatively. But display adverting is not.” At the same time, he also pointed out that Yahoo seems didn’t choose a good time to release this adverting platform. Since the current economy growth is declining the advertising budget of clients is also reducing.

Edited By Vicky Yin