So in the world of search there’s a handful of true search engines, those little boxes of which you type in your current question or conundrum and off you go into the wild internet. We have Bing, which holds onto somewhere around 27% or so of the search market, Google who holds onto the lions share of search at just over 65%, and all those little crumbs in the bottom are search engines like Ask.com etc.
It’s not difficult to find press about how Bing is making massive inroads into Googles share of search, or how last year Bing grew by over 90%.. blah blah blah. When you boil the numbers all the way down however, all you’re really left with is Google and Bing, and the only way Bing is going to make positive growth in search is to take it from Google. So using misleading titles to the tune of Bing overtaking Google, or Bing Grows 90% over the year are nearly wholely misleading. Even with all of this “incredible growth”, with all of the addins and marketing strategies Microsoft throws at Bing they’re left with a fairly large problem. Despite owning more than 25% of the worlds search volume, Bing doesn’t make any money for Microsoft.
That may not seem like it makes any sense, but look at it from a different perspective, try and see it from the advertising angle of things. The sole product sold by search engines are the advertisements that appear on search pages, which are sold not for a set amount, but based on how many times customers click on an ad tied to the search phrase that brought the user to the page. And since Google has such a huge search market share, they’re rolling in cash right from the start because of their cost per click for their adword programs. Now the one biggest reason Bing doesn’t make money, isn’t because they have a smaller search share than Google alone, as it turns out, the cost per click tied to their advertising model is as much as 1/5 the cost of Googles cost. As bad as that may sound as a revenue model, it actually gets a little worse for the Bing machine. Less CPC looks great on the surface, but as an advertiser it brings up the issue of what is driving that low cost. Bing has less traffic than Google at the outset, the CPC to serve the same ad on Bing is cheaper than Google and in the end it translates into less ad impressions on the Microsoft search engine.
So the question in the end really, is there ever really going to be a solid competitor to the Google machine? If a multi-billion dollar a year company can’t even step into the same arena as the giant and succeed, who truly can? I say bring them all on, competition is what made the web what it is today, more will only make it better.