Online advertising. The battle of the seekers

Last year the company Google generated an income of 16.594 million dollars thanks to the ads and advertising integrated in its own search engine, services such as gmail and the millions of websites that work as affiliates of its Adsense advertising program. 

Regarding the income of the year 2006, Google increased the income for this concept by 56.5 percent. It is easy to deduce that advertising as shown by these results is the company’s main source of revenue. Its strongest competitor, Yahoo!

It multiplies its resources and efforts to overshadow the search engine giant in order to maintain its position and a share of this market that is currently much lower than that recorded by its rival. In this case, advertising revenue only reached 6,969 million. In recent years, investment in search engine advertising has been increased from 47% to 66% over the last three years and where Google and Yahoo!

They stand out for monopolizing 50% of the total of this investment. The battle for the dominance of this market is continuous among the main search engines and where new strategic movements are being generated, such as the offer that was recently launched by Microsoft for the purchase of Yahoo! for 44,600 million dollars with the aim of using it to get a better position in the market. Although it may seem a successful step, Microsoft may not have it so easy since Google has already launched a proposal on Yahoo! in order to paralyze this possible purchase.

This proposal is undoubtedly a sign of the barriers and limitations that Google finds in this regard as it would not dare to make a counter-offer of purchase by Yahoo! because US antitrust laws and authorities would not authorize this sale although the company could help other companies launch an offer for Yahoo! or it would provide support for the popular search engine to maintain its independence. Google expressed concern about this attempt by Microsoft to want to extend the “monopoly” that he holds in the software market the internet world and that could provide him with abusive power. Microsoft’s response did not take long to come underscoring that this acquisition would generate a much more competitive market and that would require more investments and develop new products and tools in favor of customers.

Steve Ballmer , CEO of Microsoft, said in an interview published in the Wall Street Journal the risks and benefits of this operation; “In the long term, at two, four, five or seven years, there is no reason to be less optimistic about online advertising than before.” All traditional advertising will have a Web presence in the next 10 years. Great growth of online advertising and I think the market deserves, at least in the aspect of the advertising platform, good competition for the current leader (Google). “

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