Friday, July 31, 2009

What Site Owners, Web Developers & SEOs Should Know About The Yahoo Microsoft Deal


Posted byBy now, everyone has read all about the news that Yahoo is replacing its search index with Microsoft’s Bing. In a way, it’s a great story of complete reversal, as in 2002, Microsoft didn’t have its own index and instead used Inktomi. Late that year, Yahoo! acquired Inktomi, which spurred Microsoft to start building its own search index to avoid having a search supplier owned by a major competitor. Now Yahoo is ditching its index (including all of the technology it acquired with Inktomi) to use the very index it motivated Microsoft to build.

We’ve read about what this means for advertisers (more overall traffic from the combined audience, use of Microsoft adCenter for self-serve and Yahoo!’s sales force for premium) and for searchers (they likely won’t notice), but what does the deal means for those who create websites: publishers, web developers, and SEOs?

Web Developers

The hardest hit by this change will likely be developers. Over the last couple of years, Yahoo seems to have shifted its focus from innovating the search index to innovating its developer offerings: encouraging third-party development and creating a “developer ecosystem” for search.

Any developer options that don’t rely on the Yahoo search index may be unscathed. In particular, the non-search development tools and search-related offerings that are solely focused on the user interface may continue to be supported. While Bing will power Yahoo’s search engine, Yahoo will control their user interface and likely will try to continue to differentiate there. That’s means Search Monkey, which enables site owners to enhance how their results appear on Yahoo, is potentially safe.

Build Your Own Search Service (BOSS) likely won’t be so lucky. BOSS is built on the Yahoo index as its foundation. A company can build their own search engine using Yahoo’s underlying technology and differentiate via the user experience. Essentially, that’s what Yahoo is planning to do now with Bing as their underlying technology. No more Yahoo index likely means no more BOSS. Yahoo all but concedes as much: “We can tell you that BOSS will remain live for the time being.” What does that mean for companies like hakia, OneRiot, Daylife, and Cluuz? And for that matter, all of the developers using BOSS who are now filling the Yahoo BOSS message boards with questions?

On the Yahoo developer blog, Yahoo commented that “For SearchMonkey and BOSS, we currently do not have anything concrete to tell you. Clearly, we’ll need to work with Microsoft to determine what makes the most sense for you and for us.” If BOSS’s future is left up to Microsoft, I have no doubt that future will involve migrating BOSS users to the Bing search API. In order to continue to support BOSS, Microsoft would have to completely recreate it to work with the Bing search infrastructure. Why would they do that when they can increase the audience of a product they already have? It’s possible they’ll add some of the unique BOSS features their search API (such as unlimited queries, ability to mash up the data with other sources, and ability to tweak ranking signals), but I wouldn’t hold my breath. The Yahoo BOSS team is just as in the dark as the developers wanting answers. From a message board post: “What specifically does it mean for BOSS? Honestly the team is still absorbing the implications and we just don’t know.”.

BOSS users could switch to Google’s Custom Search API, but it is more restrictive than Microsoft’s offering, and isn’t really well-suited as the foundation of a search engines or other commercial company. Several other companies offer web indices, such as CommonCrawl and Alexa, so perhaps they or a new company will take advantage Boss’s imminent demise and offer matching features.

Any Yahoo offerings that don’t rely on an underlying index, such as the Yahoo User Interface library are likely going to remain. Yahoo confirmed this in their blog post:

“We’ve also received questions about the future of Yahoo!’s other developer offerings, such as YUI, YQL , and Pipes. We wanted to let you know that today’s news does not affect these products. None of our other non-search developer products are affected.” [Emphasis mine.]

However, look for any search index-based offerings (such as the Maps API and Local API) to be deprecated in favor of the Bing equivalents once the deal goes through.

Search Engine Optimizers and Site Owners

What about those who are concerned with getting customer acquisitions through organic search? How will this change impact them? From a traffic perspective, take a look at how well you’re indexed and ranked in Bing. That’s how well you’ll be indexed and ranked in Yahoo. What do your titles and descriptions look like in the results in Bing? That’s how things will generally look in Yahoo. This might not be a bad thing for site owners, as over the last year, Yahoo’s search quality seems to have been declining to the point that I’ve been wondering if their engineering team had already begun to be phased out or least was spending a lot of time at the bar mourning the likely phase out.

Just as you don’t need to optimize separately for AOL since they use Google’s index, you won’t need to optimize for Yahoo since they’ll use Bing’s index. The exception to this may be in how Yahoo displays results. We’ll have to wait and see exactly what this means, but Bing has been trying to differentiate in display and it supposedly, Yahoo will continue to do that as well. This may mean, for instance:

  • SearchMonkey will continue to be important as a way to stand out in the results.
  • Hmm. I can’t really think of anything else.

My guess is that the robots-nocontent tag will no longer be supported, since Bing’s infrastructure doesn’t support it. The search engines have already come together to standardize their support of robots.txt and XML Sitemaps, so site owners shouldn’t worry about changing anything with those.

The bigger issue many SEOs are concerned about is Site Explorer. Site Explorer is one of the more reliable tools for competitive backlink research. You can see a substantial list of links to any site, generally ordered according to value. That’s useful stuff! Both Google and Bing Webmaster Tools provide backlink data, but only for your own sites. Yahoo will be unable to maintain Site Explorer without a search index of their own. Will Bing take it over? Well, it could add the feature to its Webmaster Tools, but Microsoft has historically been moving the other direction. They removed the ability to query their index for link data with the link: operator in 2007 and have never brought it back for competitive research.

Microsoft likely won’t be motivated to add a feature that they specifically chose to remove. And it’s not trivial to build the code to query for competitive links and store the data. Believe me, I know. I managed the process for adding non-competitive backlink data to Google Webmaster Tools. As with the potential end to BOSS, the potential end to Site Explorer opens up new opportunities for third-parties. In fact, the same companies who build a web index could provide competitive link data. Currently, SEOmoz provides Linkscape, which offers some similar features. (Speaking of SEOmoz, Rand Fishkin posted yesterday about the SEO impact of this deal.) Majestic SEO and Exalead provides link data as well.

More generally, will Microsoft step up its efforts with webmaster relationships? Yahoo used to have a fairly significant presence in the community. In addition to Site Explorer, they were a constant at conferences and participated in online discussions. That participation has declined lately, coinciding with the decline in search quality. Microsoft seemed to be rallying with its webmaster relationships with the launch of the Webmaster Center in November 2007. But Microsoft hasn’t updated the Webmaster Center with new features since August 2008. (A minor release in November didn’t add new features).

Microsoft didn’t respond to my questions about their current and future resource investment in this area. They did recently release a rudimentary SEO Toolkit, although it requires Windows Vista and IIS 7.0 to run.

And what about paid inclusion? Yahoo has long offered Search Submit Pro, which essentially enables sites to pay to be included in the organic listings. Microsoft doesn’t offer a similar product and while it’s certainly possible that Microsoft will add this product to their offerings, paid inclusion is quite a substantial shift in overall approach to organic search. It’s less about the ability to implement the technology and more about belief around what constitutes an “organic” index. Danny Sullivan asked about paid inclusion at the announcement press conference. Carol Bartz, Yahoo CEO replied, ” Paid inclusion, we’ll decide on that later.” But it would be difficult for Yahoo to continue the program on its own, as Yahoo will no longer have control over what pages are included in the search index.

In the end, it’s about the traffic

The big question is will this partnership significantly change market share percentages? Depending on whose numbers you use, Google has either 65% or 74% share in the US (more in some European countries). That puts the combined Yahoo/Microsoft share at 28% or 25.5%. That’s substantial traffic, sure, and worth paying attention to. But what will the share look like in three years once the deal is done and we barely remember Yahoo ever had its own index? My guess is pretty similar to how it looks now. Except Google will probably have slightly higher share. I just don’t see anything game changing here that will cause a mass exodus from the status quo. But I’ve been wrong before. What I do know is that site owners who have ignored how their sites were doing in Bing until now do to low traffic numbers will likely start paying a lot more attention.

Resources: http://searchengineland.com/what-site-owners-web-developers-and-seos-should-know-about-the-yahoomicrosoft-deal-23344

Thursday, July 30, 2009

Yahoo-Microsoft Deal a Win for Advertisers


Posted by Kevin Newcomb on 29 July 2009

Many search advertisers will rejoice at today's news that the long-anticipated Microsoft-Yahoo search deal is done. The two sides reached a 10-year agreement that has Microsoft becoming the back-end provider for Yahoo Search and Search Advertising, and Yahoo selling search ads for both Yahoo and Microsoft. Self-serve ads will be done via Microsoft's AdCenter platform.

Microsoft's adCenter platform is widely considered superior to Yahoo's Panama, and with enough volume could offer a viable alternative to Google AdWords. Not a Google-killer, mind you, but a credible place to spend search advertising budget in addition to Google.

Under the agreement, Microsoft's Bing will be the exclusive algorithmic search and paid search platform for Yahoo sites. Presentation of search on the Yahoo sites will continue to be branded and controlled by Yahoo, with a "Powered by Bing" notation at the bottom of search results.

Yahoo will continue to use its technology and data in other areas of its business, such as enhancing display advertising technology. Microsoft will gain an exclusive license to Yahoo's search technology, and will be able to incorporate what it likes into Bing. Display advertising for each company will remain separate.

"This deal is about scale," Yahoo CEO Carol Bartz said on a joint Yahoo-Microsoft conference call this morning. "Together, we can offer a real, viable option for users and advertisers." Bartz suggested the increased volume will create a better marketplace for advertisers, as well as better deals for publisher partners.

Microsoft CEO Steve Ballmer echoed that idea, adding that the increased volume of searches and ads being served by Microsoft would greatly accelerate the speed of learning from the marketplace, allowing Microsoft to improve its Bing algorithm and adCenter platform faster than it could on its own.

Many search marketers agree that Microsoft's technology combined with Yahoo's traffic will make this a good deal for advertisers.

"While Yahoo has always had decent traffic volume, their PPC tools have been sub-par. A clunky interface combined with the lack of an offline editor have resulted in a huge barrier to entry for those wanting to do PPC with Yahoo," said Melissa Mackey, online marketing manager at Fluency Media. "On the other hand, Microsoft's PPC tools are extremely robust – more so than even Google's in many ways. However, the lack of traffic volume has historically meant that relatively few advertisers choose to bother with adCenter."

Advertisers would be less happy about the deal if it were Yahoo's technology powering the combined ad marketplace, she said. Besides the technology, the community relations of Microsoft's team has been superior, according to Mackey.

Brad Geddes, founder of bg Theory, agrees: "If Microsoft had to choose between the Yahoo Search Marketing platform and team or the adCenter platform, it's a good thing they chose adCenter," Geddes said. "The issue with adCenter was always volume. It was a great platform, but had so little volume, it was often not worth the time to manage. With the combined search share Microsoft will now command, I have very high hopes for that the adCenter platform and its community will be able to accomplish. If they continue to embrace advertisers like they have, they could be a formidable force and increase advertiser adoption."

But that doesn't mean Google should be scared. While the deal definitely creates more of a threat to Google, creating a bigger #2 search engine, The gap between them will still be fairly large. Will a combined Yahoo-Microsoft be able to take share away from Google? That remains to be seen. So far, Bing has been taking share from Yahoo and other smaller search engines.

Besides that, the deal is still a long way from closing. Microsoft and Yahoo will begin submitting it to regulators in the U.S. and Europe as early as next week, but that process is likely to go on for the rest of 2009, at the very least. Once approved, the transition to Bing will take place over the next 3 to 6 months globally, and the transition from Panama to adCenter will take up to 12 months.

All told, the combined Microsoft-Yahoo search engine is likely 2 years away. That's a long time for things to go wrong, or for Google to step up its game and come out with something to make this deal irrelevant.

Resources: http://searchenginewatch.com/3634553