MSN Pays $150M for 1.4% Seach Market Gain

11 comments
Source Title:
MSN Gains Search Market Share
Story Text:

Microsoft has grown its share of the search market, going from 12.8 to 14.2 percent, according to AdWeek. So according to the figures, they've just spent $150M on 1.4% market gain...

MSN introduced its search engine Feb. 1, backing it up with an estimated $150 million ad campaign designed to get consumers to try MSN Search. MSN ran TV ads during the Super Bowl, Academy Awards and Grammys. It has also heavily promoted the search engine throughout MSN and on dozens of Web sites, including Weather.com and NYTimes.com.

Comments

Hmm..

Anyone know how many users/searches that equates to?

They got more

Competitors also took a lost! (the 1.4%) and if anyone think this is all they get think again. This is just the beginning, I believe. MSN is going to fight hard, for a long time, to gain far more than this. Watch it! :)

I think you are right

This is only the beginning, and didnt take them very long either. As SearchEngineLowdown say, it was cheaper than buying ask :O)

Quote:
Ask IAC if they think $2b for 5% market share (from Ask Jeeves) is worth it. By comparison, 1.4% at $150 million looks like a bargain!

Let's Play Numbers

If both purchases were for a permanent share of the search pie I think MSN are the evil geniuses of search. They get that back in a hurry.

 

It's like any new start, the first new gains take a lot of effort, time and money for small progress and bits an peices of the pie. As any salesman, it can take weeks or months to break into some markets. First you get crumbs and then something better if you can follow through and deliver.

Changing habits is tough, so I fully expect MSN to have a tough time for the first year or maybe even two - then gains might become a bit easier. It will be interesting to see if they actually stick to it or get distracted.

great bargain for msn

also don't forget that the ad camapign will also bring in more interested advetisers for the msn network, so they are gaining market share and ad revenue

Very cheap

Seems that, roughly, each 1% is worth a billion http://finance.yahoo.com/q?s=goog

Not bad

Multiply a bit, at 14% for a half a billion less than IAC paid... I'd say it's a steal.

in real time

We will all see the true gains in real time...just check your log files.

As

As NFFC commented in a Yahoo thread:

Quote:
Yahoo's revived interest in search is a direct result of Google, they reminded Yahoo that search is a cornerstone of the www and showed them that there could even be a few $ made.

Any significant growth in market share is good for Microsoft for long-term revenue generation.

Great Investment

That sounds like a great investment if they can hold on to their market share gains.

Besides the recent advertising blitz, I wonder if Joe Surfer can actually tell if the serps are different from before?

Also, I think spam targeted toward MSN is on the rise.

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