What a Microsoft, Yahoo! merger could mean to you!

These are exciting times for all of us in the Internet world. Only really in our infancy, we are booming and will likely surpass radio in 2008, in terms of total advertising dollars. Over time, we’ve improved (technologically speaking) and now offer advertisers unprecedented levels of variety, tracking and accountability.

So, what does a possible Microsoft, Yahoo! merger do for you? Below are some thoughts:

1) Google stays on top - Google, currently with a 65% market share of search, will remain the top search engine. You don’t “MSN” or “Yahoo!” something, you “Google” it. All predictions point to the fact that nothing much will change here in case of a merger. Your web business should still focus on Google first.

2) MSN takes Yahoo! search technology – MSN has tried working with its own search engine marketing console and has failed miserably. What once was a promise of “behavioral targeting”, MSN clearly has a console that hasn’t worked for most advertisers. With a merger, I would fully expect MSN to take Yahoo’s search technology for its own purposes. Again focus on Google but pay attention here – if this happens MSN Advertising becomes more attractive.

3) MSN keeps the Yahoo! brand in tact – While it would make sense to merge into one, eliminating the Yahoo! brand would be bad for business. With a ton of content and interactivity, Yahoo! is one of the most visited sites on the web. Changing these pages to an MSN brand would likely confuse and turn off die hard Yahoo! brand advocates. If MSN keeps Yahoo! as is, nothing changes for you as an advertiser.

4) MSN Backlash – A merger could produce an MSN backlash. Yahoo! is one of the oldest web properties, born from an era when Internet upstarts were up against corporate giants like Microsoft. One scenario is that users will defect to Google, only making that brand stronger and a better play for your advertising dollars.

A Final Thought:

A merger, believe it or not, would be better for online advertisers. This merger would put some heat on Google and this increased competition will benefit advertisers. I expect new innovations, better targeting capabilities, and new advertising models to emerge from this new competitive landscape. AND for that reason alone, I hope it all goes through.

Ron Weber, is the President of SD Interactive, a San Diego Interactive Agency.