Several people have asked for my opinion on Microsoft’s intention to purchase Yahoo (Microhoo) for around $41 billion, as well as WPP’s merging of their of 24/7 Real Media search division with its other search agencies – Outrider, Catalyst and Quisma – to form the world’s largest search agency.
Well, to be ‘Frank’, I say bring it on. Like in most industries, consolidations make sense and it also proves that the Australian marketplace is taking search engine marketing (SEM) seriously. In Australia, Online advertising has cracked the $1 billion mark and is growing rapidly. Mergers and acquisitions are bound to occur when there is demand, or more importantly, perceived demand in the marketplace.
Due to the vast amount of media coverage concerning the potential merger of Microhoo, more and more people are starting to investigate SEM and realising that SEM is both a cost effective and accountable form of online advertising. Even my father, a web novice, has begun asking the right questions. And thats great news if you are in the business of providing SEM solutions.
Will the deal proceed? I have my doubts. For starters, Jerry Yang (founder of Yahoo) is not a great ally of Microsoft and I sense a deal is potentially forming between Yahoo and News Corp…