If Microsoft’s bid for Yahoo! comes through, it might open up a new chapter in social networking.Microsoft has been facing the heat from Google while Yahoo’s efforts in social networking haven’t created the much required impact. Yahoo’s social networking strategy combined with Microsoft’s third party advertiser program with Facebook might help the combined entity to better tackle’s Google’s dominance.
A look back: Yahoo and Google may have been cut throat competitors, but have quiet a few things in common. Both companies were started by graduates from Stanford and have a great deal of focus on the social networking space. From search platforms, to acquisitions, to APIs to identity management, a range of different approaches and theories have surfaced over the past couple of years. All one needs to do is to look up for articles that mention Yahoo! and articles that mention Google. Chances are that 99% of those will mention both with analysts drawing comparisons between Yahoo! and Google and how distant or how close they are in terms of tapping the market opportunity.
New entrants: With the software giant Microsoft bidding for one of the largest online consumer brands and hoping to close it successfully, it is anticipated that consumers and marketers will see more innovations and concepts floating around.
Yahoo vs. Google turf: Yahoo’s social networking strategy have been more about connecting the network profile dots. In late 2007, Yahoo! launched two networking sites – Mash, a widget like site and Kickstart, more of a professional networking along the lines of Linkedin. I wonder how many people are aware of their existence today! Some of the common criticisms being faced by Yahoo such as the inability to use common data/registration process already available with the Yahoo bank or link up Yahoo mail and other services to these sites or being able to import pictures from Flickr (a photo sharing site owned by Yahoo).Who wants to create multiple profiles and worry about managing them separately! Analysts have concluded that for Yahoo to become successful in social networking, it needs to come out of network silos. Google on the other hand has been playing a different game. After having tasted success with its social networking site Orkut and Dogdeball and its ever increasing dominance in internet search technology, Google has opened up avenues for developers to build interconnecting social applications through its OpenSocial initiative which aims to attract developers and techies to build applications using an open API (Application Programming Interface).
OpenSocial has been considered a threat to Microsoft’s third party advertising program with Facebook as Google intents to commoditize social networking.
The question that still remains unanswered is what is the right strategy and will Microsoft combined with Yahoo give Google a hard time or the later will continue to lead the way?
For now, it’s a wait and watch game and in terms of what this deal can bring to consumers and marketers, here are a few pointers:
- Integration of web properties:
- Users can expect to experience a comprehensive portfolio.
- Users can expect better alogrithm search More targeted advertisements.
- Combined entity can become a major force: sign up other websites and publishers (e.g. online retailers and content sites to compete with Google’s AdSense program)
- Better strategy to tap in social networking sites for ad revenues and consumer data.
All in all, this could potentially bring in a new wave in social networking. Keep listening.
Songita
