Search Continues To Allude Microsoft

Microsoft today turned to the print world to talk about its capabilities in online search. Full-page print ads will appear in the New York Times, Wall Street Journal, USA Today, San Francisco Chronicle, Seattle Times, Seattle Post-Intelligencer and San Jose Mercury News. Even worst, the campaign is being executed by McCann, an agency that is barely able to execute it own online campaign.

The ads highlight the recently launched Windows Live Search engine's image search, local search, and mapping tools capabilities. The ads position Microsoft as the search underdog against Google. It reads "Before we begin, let us state the obvious. We're late to the game. We admit it. But instead of shrugging our shoulders and becoming a footnote in search history, we've decided to write a few new chapters."

Microsoft's share of the search pie is about 12 percent, down some 3.5 percentage points from last year. Microsoft's online division has revenues of $539 million, and made a profit of $68 million gain versus a loss of $136 million last year.

Significant Growth?
Microsoft SVP and CFO Chris Liddell, as quoted by SeekingAlpha, forecast revenue in the Online Services business to grow between 7% and 11% for the year and to be up 3% to 5% in quarter two. The full-year growth number implies significant year-over-year growth in the second half, based upon growth in both search and display advertising revenues."

Overture Passed Over
Three years ago Microsoft passed buying Overture. See 'Search Wars" Microsoft will have to buy its way into this party. This sector is projected to grow 27% to US$15.9 billion in the U.S this year according to eMarketer. And with Google locking up MySpace and YouTube it will be tough days ahead.

This WSJ article Tough Days For Microsoft sheds some great light http://online.wsj.com/public/article/SB116139351306899766-i4VZXbDLKR8oTbVOGvh_ZzjMN18_20071022.html