The Mercury News takes an in-depth look at the lack of ROI Microsoft is getting from its investment into web technologies, especially search.
Despite introducing a bunch of new products, including a new search experience, online video and Virtual Earth, Microsoft just can’t seem to keep up with Google’s explosive growth.
The result: The number of visitors to Microsoft’s sites has not budged, while the amount of time they have spent there has dropped. Advertising sales have fallen. Meanwhile Google’s traffic and advertising have continued to surge.
I’ve long said that the race is no longer about technology, but brand perception and user experience. Google has done such a great job of capturing mind share that it will be hard for a company such as Microsoft – with their perception of being a controlling company – to ever topple them in the minds of the consumer.