Microsoft Enters Search Engine Battle with MSN Search

Strategic Insights -

Two years after announcing its intention to launch a search engine, Microsoft has finally unveiled its homegrown search technology to the users of its MSN service and Internet Explorer browser. The move marks a significant shift for Microsoft, which has previously utilized Yahoo's underlying technology for its Web search services. Analysts have praised the move, but caution that Microsoft still lags behind its rivals, Google and Yahoo, in terms of search results quality.

Key Takeaways:

  • Microsoft has finally introduced its homegrown search technology, ending its reliance on Yahoo's underlying technology.
  • Analysts believe that Microsoft still needs to improve the quality of its search results to compete with Google and Yahoo.
  • Microsoft has added several features to differentiate its new service, including a free encyclopedia content and options to fine-tune search results.
  • The service is now available in 10 languages.
  • Microsoft's advertising budget for MSN Search will be significantly lower than the $300 million spent in 2003 to promote its Internet-access service.
  • Analyst Niki Scevak suggests that Microsoft needs to make its search product equivalent to its rivals before it can attract significant market share.
  • Bill Gates, Microsoft's chairman, believes that the launch of MSN Search represents a major opportunity for innovation.

Statistics:

  • Microsoft spent $300 million in 2003 to promote its Internet-access service.
  • MSN Search is now available in 10 languages.
  • The company's advertising budget for MSN Search will be less than $300 million.

Sources:

  • Niki Scevak, analyst, Jupiter Research
  • Bill Gates, chairman, Microsoft
  • Yusuf Mehdi, corporate vice president, Microsoft MSN
  • Microsoft's official announcement on MSN Search