With Microsoft and Yahoo! finally signing a deal that wipes years of competitive development away in a single stroke the local question is what are the effects for NZ users?
In reality, very little.
While the deal has been brokered to give Microsoft and Yahoo the opportunity to tackle Google in most markets (specifically the US where Google has 70% coverage), in New Zealand Google has well over 90% coverage which leaves very little room for competitors who are looking to lift their percentage of the search market above double digits.
One interesting question for those who follow local search is if in NZ Google is #1 and #2 is about to be Bing/MSN/Yahoo/Xtra, then who is #3?
Competition in search is a good thing, it helps promote innovation and pushes companies to facilitate better ROI for the advertising dollar. Some commentary on the deal has already begun discussing the openings potentially left for start-ups and smaller search alternatives that are nimble enough to move with the market as new needs are seen.
If you’re interested in reading more about the deal from their own perspective, they have set up a site specifically to present the case to the public – http://www.choicevalueinnovation.com/
