I-Search #025: Recap 2005

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                    SearchReturn Discussion List
             "Understanding Internet Search Technology"
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Moderator:                                          Published by:
Detlef Johnson                                       SearchReturn
               http://www.searchreturn.com
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December 29, 2005                                      Issue #025
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                   .....IN THIS DIGEST.....

// -- MODERATOR COMMENT -- //

          "Goodbye 2005"
                    ~ SearchReturn

// -- RECAP 2005 -- //

          "MSN Search Launches"
          "Google Extends AOL Partnership"
          "Race For China"
          "Google Analytics"

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// -- MODERATOR COMMENT -- //

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==> TOPIC: GOODBYE 2005

Hello everyone,

Search had an incredible 2005, and we are looking forward to
further growth in 2006. One memorable thing about 2005 is that
news from mainstream press finally picked up big on search like
never before. Googlemania led to some catchy headlines. This was
a good thing when the story got search right. Regardless, the
influx of search in the news brought Google and Yahoo! top of
mind for most folks. Google is the top "Newsmaker Brand" during
2005, and expected to continue in 2006 according to a survey by
Landor Associates and Penn Schoen & Berland. Yahoo! was number
seven on the list of newsmaker product brands and celebrities.

As mainstream press picked up, however, reporters consulted
everyone under the sun for a catchy headline. PR machines from
search engines serve their own needs, and spammy companies spin
themselves to appear legitimate. Mainstream press has a habit of
interpreting information with such newsroom frenzy, the facts or
tone of discussion is often totally off base. The year of the
blog helped make this much more fanatical, and often more wrong.

Despite the blast of bad information, there were major search
milestones throughout the year. What we'll do, is recap a few of
the most important things here. We'll look for posts from you who
want to include something not covered in this issue. That way, we
can say a proper goodbye to 2005, and welcome the new year
starting off thinking big.

What do you suspect will be big for search in 2006?

Stay tuned.

-detlev

 

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// -- RECAP 2005 -- //

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==> MSN SEARCH LAUNCHES

Essentials: Back in February, MSN began using Microsoft's home-
grown search engine. Over a year in development, the search
engine was highly anticipated. The launch fell far short of the
quality search experience people expected, and MSN lost search
marketshare. The year saw a number of quotes by Bill Gates and
Steve Ballmer about matching Google relevance, including the
"six-months" timeline. That did not materialize.

This is version 1.0 of their engine, and we can expect further
investment in advancing the state of MSN Search. Microsoft has
shown their commitment to entering the industry with the October
launch of AdCenter. The year 2006 should see MSN Search version
2.0, where we expect to see some quality enhancements that may
come close to matching the other major players.

Time will tell.

There may or may not be anything to the rumored talks with
Yahoo!. It could certainly make up for Microsoft missing an
opportunity with AOL. What would that look like?

 

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// -- RECAP 2005 -- //

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==> GOOGLE EXTENDS AOL PARTNERSHIP

Essentials: With Microsoft entering the search space, they tried
very hard to come to terms with AOL for replacing Google as the
default search engine and power the search ads. Google came out
of the discussions extending their partnership with AOL for an
additional 5 years. As part of the deal, $1 billion dollars buys
a 5% stake in AOL for Google, and $330 million dollars buys
Google advertsing (incluing image ads) for AOL.

AOL represented about 10% of Google's 2005 revenue, so this may
be a large amount of cash for the deal. It accomplishes some key
things for Google which may make it a worthwhile gamble. It holds
Google's search marketshare dominance for the time being, and the
AOL investment can be sold off half way through the 5-year time
period. It is a serious loss of opportunity for Microsoft who
might otherwise have had a major search marketshare gain.

 

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// -- RECAP 2005 -- //

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==> RACE FOR CHINA

Essentials: With the big prize of handling search for the most
populous nation in the world, Yahoo! and Google are racing neck
and neck. Microsoft has long held investments in China. With a
high-profile battle over defector Kai-Fu Lee, Microsoft lost a
key Chinese search expert to Google. Yahoo! meanwhile may be
pulling ahead in the space.

All companies are expected to cooperate with the hard-line
Chinese governement, who have so far been less a vocal critic
about American search company dominance than France or Japan. A
feeling of threat, and cultural protectionism as response by
France and Japan is something we might have expected from China.
Yet the Chinese government is taking a much less adversarial
approach. We can only guess cultural considerations are secondary
for China when they want to encourage Western business interests.

 

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// -- RECAP 2005 -- //

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==> GOOGLE ANALYTICS

Essentials: All the search engines released a great number of
innovative products and services during 2005. Most of these were
released without cost and were seen to improve things for users.
The release of (Urchin) Google Analytics, on the other hand, has
far reaching consequences, and in particular, comes as a shock
to the entire tracking industry. Though reactions have been
minimized, the tracking industry will need to adapt to the news.

Regardless of whether you feel anxious or not about Google
tracking your stats, (including AdWords and other marketing
referrals), Google will see a tremendous user install base
in very little time. If you aren't already familiar with it,
get familiar with the service now. Chances are a portion of your
future clients will be using it, and you must be prepared.

 

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