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What the Microsoft/Yahoo deal means for property companies
Google’s dominance of search is not in the interests of estate agents. With a virtual monopoly in many geographical markets, limited supply only means one thing: higher paid search costs.
If Microsoft succeeds in its hostile takeover of Yahoo, this may begin to change. The bid is by no means guaranteed to be successful, as Yahoo say they will talk to Google about a partnership rather than accept the takeover. Whatever the outcome, it looks like the search engine market is due for further consolidation. Here is our take on what it means for the industry.
Paid search
- I spoke to a company the other day that’s paying £80 per lead on Google Adwords. Unless you have branding objectives your costs shouldn’t be this high but it illustrates how much lead costs via this medium have risen recently. If a new Microsoft/Yahoo company can take market share from Google, it will provide more inventory and potentially reduce paid search inflation and therefore lead costs. If Yahoo do a deal with Google, the opposite will be true.
- Unless you have access to a bid management system that automatically feeds the search platforms, you currently have to set up three accounts, which is time consuming. A merger will make it easier and more profitable for estate agents to use another paid search system in addition to Adwords.
Organic Search
- Like Google but unlike Yahoo, Microsoft puts significant weight on domain names when ranking websites. If the takeover goes through then owning a domain name that contains keywords you want to rank for could become more important. You can search and buy domain names here.
- Listing on the Yahoo Directory is one of the quickest and most effective ways of getting a trusted one way link to your website. Microsoft recently closed its small business directory and it’s uncertain which parts of Yahoo would get killed off in a takeover. If you don’t have one already, it may be worth buying a Yahoo directory entry now.
- Microsoft puts more weight on new links than Yahoo or Google. If a combined Microsoft/Yahoo increases market share, it could become even more important to produce new content regularly to attract links.
Search engines are the most efficient means of reaching overseas property buyers so any consolidation in the market will have an impact on the industry. The changes won’t be immediate but stronger competition is in the interests of small businesses, especially estate agents and developers.