Microsoft (MSFT) has come up with a name for its new search engine technology–“Bing”.
The world’s largest software company is prepared to spend as much as $100 million promoting the product. There is still a major question about whether the technology or the advertising will turn Microsoft’s search share in the US from 8% to something better than that. The market is currently dominated by Google (GOOG) which owns about 67% of the market and Yahoo! (YHOO) which has more than 20%
According to Ad Age, “Certainly Google has never faced an ad assault of anything like this magnitude.”
Microsoft faces two old questions which are at the heart of the marketing puzzle. Can an improved product add market share? Can an improved products coupled with a mammoth ad campaign improve market share even more?
Microsoft’s fight may be against something with is unconquerable–habit. Google has become an integral part of most people’s Internet habits. It is perceived as the superior product in the field. Based on the company’s revenue, that assumption has turned Google into a financial success.
Microsoft also faces the question of how much better is better? Does “Bing” have to bring back search results that are 10% more relevant than Google’s to get a large number of people to change their habits? Or is that figure 20% or better.
With all of the PR around the “Bing” launch combined with Microsoft’s marketing muscle, Redmond should know if “Bing” is a bust within a month or two after its launch date.
Douglas A. McIntyre
Top Gaining Stocks
Top Losing Stocks