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Bingahoo Not a Slam Dunk for More Ad Dollars

MicrohooWe know that the ink from Steve Ballmer’s huge pen is barely dry on the documents that christen the new era (or error) of the online marketing industry but inquiring minds want to know whether the masses are on board. In this case, the masses are advertisers who are going to need to gather intelligence regarding the true potential impact of how they allocate search ad spend in the future. This new kid on the block is not even out of the ‘corporate offspring’ nursery unit and polls are taking place as to whether advertisers intend to spend more money with the Baby Micro-Yahooy. ClickZ offers its take

[Advertisers] When asked, in light of the outsourcing agreement, “will you increase your search spend with Microsoft/Yahoo?”, 63 percent said they would not. “No” votes were cast by 169 out of a total 267 respondents.

Since we are somewhere in the range of at least two years minimum from a full execution of this pairing (or execution of the responsible parties) I suspect that there is little concern in the Microhoo camp regarding the early polls.

What is interesting, however, are some of early reasons for this kind of early take on the new entity.

Despite general optimism that the agreement will establish a viable competitor to Google, search advertisers are fearful that some of their favorite Yahoo search advertising functions may disappear. And, ever attuned to ROI, they say it wouldn’t make sense to pledge to increase investment before first testing how their Microsoft adCenter-created campaigns perform on Yahoo and on Yahoo’s syndication partners.

Sounds reasonable enough. Since none of us have a real sense of what this whole offering will look like we can choose to speculate and wring our hands over what may or may not be gained / lost. In the meantime, since most people have a business to run between now and several years down the line it will likely be business as usual. While we remain on the edge of our seats for the inevitable barrage of PR and corporate ‘looks into the future’ that will be thrown into the media hopper by Microhoosoft let’s keep our focus on things that actually are rolled out and usable. Until then what’s the point?

  • Michael Martinez

    How is anyone supposed to predict advertising spend 2 years in advance? That is crazy.

    I’m certainly convinced that advertising costs will go up in a BingHoo network, especially if advertisers lose the demographic segments they now enjoy with separate advertising networks, but if the ROI is maintained (most people say Yahoo! and Microsoft offer better than Google) or improves then advertisers probably won’t mind — they’ll just pass on the increased cost of acquisition to consumers.
    .-= Michael Martinez´s last blog ..Microsoft and Yahoo! antitrust concerns =-.

  • Nick Stamoulis

    I think it is still too early to tell what anyone is going to do in the marketplace in general. Regardless I think advertisers are not increasing their spending for many reasons.

  • araba oyunları

    They now enjoy with separate advertising networks, but if the ROI is maintained or improves then advertisers probably won’t mind they’ll just pass on the increased cost of acquisition to consumers. Thanks.

  • giydirme oyunları

    Facebook is pretty damn impressive given how big they got with little funding, and how successful they’ve been since the large funding. Yeah they have a lot of employees but they’re a speck compared to Yahoo/Google/Amazon etc.
    .-= giydirme oyunları´s last blog ..canavar kamyon =-.