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Search is a Business of Volume

Wondering why Microsoft would purchase Yahoo? It isn’t for the technology. I’m sure Microsoft considers their superior. It’s simply for the volume of users.

Even though Google has a significant lead over any other search company, Yahoo is always mentioned second. Microsoft is barely mentioned at all. Steve Ballmer wants this to be a two-man (uh-um, company) race. Volume gets Microsoft there. Now, every article written that talks about Google, whether it’s their commanding lead, their technology, their ad network, will also mention Microsoft. That’s an amazing amount of free branding.

Beyond that, Microsoft must have a huge volume of people using its search engine in order to build an online ad business that can compete. Will purchasing Yahoo narrow the gap with Google? In the short run, no. But in the long run, the increased brand recognition will draw many more users to Microsoft and possibly change the dynamics of the playing field.

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