
There has been a ton of coverage on Microsoft’s recent bid to buy out Yahoo! for a reported $45 Billion in cash and stock. For the travel industry I speculate a few ripples coming down the pipe - although there may be more and I’ll report on those as they become evident.
Paid Advertising:
Microsoft actually has a pretty nice Paid Ad platform w/ AdCenter. The problem lies in where they show your ads and how easy/not easy it is
to opt out. Because of the huge number of people who use MSN as their default browser, showing ads on irrelevant Microsoft properties and for strange queries isnt condusive to a large return on investment right now. That being said, MSN AdCenter has potential.
Yahoo on the other hand has a very un-intuitive platform with Panama. I will admit it’s better than the old Overture platform, but I personally think it’s still clunky, hard to navigate and a royal pain to maintain and hold high CTR and ROI.
Neither Yahoo or MSN show the return on investment for the travel sector the Google Platform enjoys. Speculation is that the MSN AdCenter brand would suffer in the merger as Yahoo has a larger audience. I think that’s a mistake as AdCenter’s platform is easier to use, more “Google-like” in interface, and some great targeting features for demographics, etc.
With further developement in AdCenter, and Yahoo’s number of clients - they could combine what they have into something that works great.
Search:
Microsoft has struggled with making their “Live Search” brand a household name. MSN is known, Live us unknown. Adding Yahoo! into the mix could confuse the consumer even more. The reality is - you’re going to have to be found in any search engine, but with Google handling a huge percentage of “travel shoppers” they’ll stay secondary unless they combine and make one REALLY GOOD search engine to rival Google.
We tell our clients we optimize for Google, because that’s where the market share is for travel. We dont “throw away” Yahoo & MSN (or “Live”) searches, but we emphasize that hurting your Google rankings for a piece of Yahoo action is not a sound decision. You cannot optimize a page to rank highly in Yahoo! and see them succeed in high organic positions on Google - that’s a fact of life for private (not large chains or networks) travel & tourism websites right now.
Yahoo! Travel
Google has yet to roll out a dedicated travel vertical like Yahoo! has with Yahoo! Travel. This is a chink in Google’s armor that I’m sure Microsoft plans to capitalize on. I belive the popularity of Yahoo’s verticals is a tempting bonus for Microsoft.
It’s important to have good reviews in Yahoo! Travel already, as even Google Maps pulls reviews from Yahoo, but with the merger,that importance will increase. I also believe the competition w/ GDS providers sending availability out through Yahoo! Travel could cause some issues with people booking directly with the property.
Overall I think there will be ripples, and if Google wants to stay on top, they’ll need to work hard to roll with the needs of the advertising and user communities. For online travel sales I see a few changes in what we need to know and where we need to apply our knowledge, but I’m pretty confident we’ll be able to handle whatever comes up.
I dont think the changes will be painful, and with the potential to have a bigger competition going on between MicroHoo and Google, our bottom line may increase as costs MIGHT decrease. That’s speculation of course, but wouldn’t it be nice to see ad pricing drop a bit?
Read more about the potential Merger here:
SearchEngineWatch.com
SearchEngineLand.com