Amazon Dumps Google for MSN
From CNET News:
"As Google continues its expansion away from pure search, it's starting to see a reaction from other Internet companies. Online retailer Amazon, for one, has switched search partners from Google to Microsoft. Amazon's Alexa search toolbar and A9 search engine now get results from MSN Live instead of Google."
Among users, Google is the most popular Internet search engine, followed by Yahoo and MSN. Its user popularity has translated directly into advertising revenue, as Google captures forty-nine percent of all search-related advertising business.
Now, MSN and Yahoo are mounting offensives designed to narrow the gap between the industry leaders. The partnership with Amazon is just one part of MSN’s immediate plan to increase its search-related revenue.
Early this month, MSN is expected to debut its first search-advertising network, adCenter, leveraging its unparalleled database of user information to place online advertisements which are contextually related to both user-input keywords and demographic information about the user.
As reported on BusinessWeek online:
"More than 250 million users have provided Microsoft some level of personal info, such as gender, age, and Zip Code, when signing up for various MSN services, such as a Hotmail account. Microsoft will lay this demographic data on top of contextual ad matches with the hope of providing a radically improved result. Microsoft insists that no personally identifiable info will be disclosed.
Instead of simply bidding on words and phrases, MSN is betting that some advertisers will offer a larger payment if the Web surfer falls inside its target audience. For instance, Kentucky Fried Chicken . . . could target women between 35 and 45 at dinnertime with hopes they'll opt to buy a bucket of thighs and breasts instead of cooking. Or Neutrogena Corp. . . . could target one set of ads for its facial cleansers for men and another for women."
Applying demographic matrices to keyword search results increases the likelihood that a user will actually view and respond positively to a specific advertisement. In essence, it helps display advertisements that are appealing to the specific user.
MSN could really benefit from additional partnerships with other e-commerce businesses that keep customer preference and activity information, like Tivo and Netflix. A search engine with access to a user’s basic demographic information and the user’s purchasing, television, and movie preferences would be a powerful provider of relevant advertising and tailored search results.
For more information on MSN’s partnership with Amazon, see Amazon switches search partners on CNET News.
For more information about the efforts of MSN and Yahoo to close the gap between the Internet search leaders, see The Counterattack On Google on BusinessWeek online.
Update (5/2/2006): See the Washington Post article: Amazon Search Finds Microsoft.
Update (5/5/2006): Ballmer Boasts of Search Engine Progress on washingtonpost.com.
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