SearchEngineUpdate with Vanessa Zamora - 07-24-2008 Part II
Abstract: 1. Microsoft CEO Speaks On Internet Strategy, 2. Baidu Reports Strong Second Quarter Earnings
Vanessa Zamora
Video Content Producer, SearchEngineWorld
9:43 pm on July 24, 2008 (utc 0)
Transcript
Thursday July 24, 2008
Microsoft CEO Speaks On Internet Strategy
Microsoft Chief Executive Steve Ballmer today at the opening of Microsoft’s annual analyst meeting with Wall Street analysts revealed that although at the moment any further discussion with regards to a business transaction with Yahoo is unlikely, the need to make heavy investment in Microsoft’s Internet business remains, with a stated $500 million in investment for its online business planned. An acquisition of Yahoo was seen as a vantage point for Microsoft to gain leverage to compete more effectively with search and related advertising leader Google. But now that Yahoo is out of the picture, Microsoft is moving on, starting with an expansion of its existing pact with Facebook to provide Web search and search advertising in addition to its existing deal to run graphical ads on Facebook pages. The Internet strategy announcement by Ballmer comes one day after it was revealed that Microsoft head of Internet strategy Kevin Johnson is leaving.
Thanks in large part to the Beijing Olympics coming to town, China’s leading search engine Baidu.com, revealed on Wednesday that second quarter net income jumped a staggering 86.7 percent tied to strong online advertising and Internet traffic growth. Profits rose $38.6 million compared to the same period in 2007. Other factors contributing to the growth was loyalty amongst small to medium sized businesses utilizing paid search, an increasing number of large enterprises in China adopting search engine marketing, combined with Baidu’s ability to increase revenues per active marketing customer. The number of active online marketing customers during the second quarter grew to over 181,000, an increase of 12.4 % from the preceding first quarter. Baidu led with 63% of the Web search market in China, according to iResearch. Google had 26% and Yahoo came in third just shy of 8%.
9:43 pm on July 24, 2008 (utc 0)