March 05, 2008 | Wednesday
Big change for Ask, big battles for Microsoft and Google (still)
By Jackie Danicki - Blogger in News |Search Engines |Ask |Google |Yahoo |Microsoft
Also-ran search engine Ask has seen some changes over recent years, including a $2.3 billion acquisition by Barry Diller and the name change from Ask Jeeves (which necessitated the loss of corporate mascot Jeeves the butler). But as far as changes go, this is a biggie.
In a dramatic about-face, Ask.com is abandoning its effort to outshine Internet search leader Google Inc. and will instead focus on a narrower market consisting of married women looking for help managing their lives...With the shift, the Oakland-based company will return to its roots by concentrating on finding answers to basic questions about recipes, hobbies, children’s homework, entertainment and health.
You know, the kind of questions women are already asking Google, and have been for years. As Silicon Valley notable Jeff Nolan remarks:
However, just being a search site for women isn’t enough, they have to figure out a strategy for building community around women. In the final equation this just proves that being as good as Google isn’t enough to beat Google, as is the case with most competitive struggles.
To be fair, there is some solid reasoning behind this decision, as Ask has reason to believe that it has a strong following amongst females. (Let’s hope that data is reliable, anyway.) But if it doesn’t work out the way IAC hopes, this could spell the end of Ask as we know it.
One thing’s for sure: I don’t think the fall in Google’s share price yesterday had anything to do with Ask’s announcement.
The stock dropped as low as $435.78 in heavy trade amid abroad drop in technology shares following a profit warning from Intel Corp. (INTC.O). Google slid below its 52-week low of $437 set nearly one year ago on March 5, 2007...Just four months ago, Google had a stock-market value exceeding $232 billion and a share price approaching $750 after more than three years of unchecked gains.
By Tuesday, its share price had fallen more than 40 percent and its market capitalization hovered around $137 billion.
Between that and the defection of Sheryl Sandberg, head of global sales for Google, to Facebook (where she will be COO), the week hasn’t been so great for Google thus far. But there is some good news, as the search giant has continued to pick up market share:
Google’s (GOOG) share of the U.S. search market ticked up to 66.44% in February, from 65.98% in January, and 63.9% a year ago, according to Hitwise. The market research firm says Yahoo’s (YHOO) share fell to 20.59%, from 20.94% in January, and 21.47% a year ago.
Microsoft saw an increase in its search share, which has to smart with Google after this Bill Gates comment on Monday:
In terms of Google, not to overstate it, but they really don’t understand the special needs of business.
Saucer of milk, Mr Gates? So many individuals within businesses have abandoned Microsoft enterprise technology for open source or Google products that it seems a bit inflated of him to suggest that Microsoft has nothing to learn when it comes to business needs.
But the fact is that 99 per cent of Google’s revenues come from search. Even if they don’t triumph in enterprise software, they won’t lose much from having tried.
Meanwhile, Microsoft is pulling out all the stops to become relevant online. The attempted Yahoo acquisition is just the most interesting, expensive attempt of late.
Whether Google’s spreadsheet software tabulates as quickly as Microsoft’s doesn’t count for much. Becoming the market leader in online advertising is the battle that really counts. To that end, Microsoft still has a ways to go, and it might behoove Mr Gates to keep that in mind.
Comments
There are no comments for this entry yet. Use the form below to add yours.