Microsoft to take on rival search giants with Vista launch

by Darren Davidson, Brand Republic 30-Jan-07, 09:00

LONDON - Microsoft has signalled its intent to take on advertising-funded business models such as Google's, as new figures show its share of internet search continues to fall.

Speaking at the launch of the software giant's new operating system Vista, Steve Ballmer, the Microsoft chief executive, said that having conquered the threat posed by open-source software over the past few years, the company was turning its attention to advertising-funded business models.

Ballmer said: "Really getting a clear direction of how we embrace, compete, extend advertising as a business model -- that is a primary issue for me and it extends across the product line.

"We're number-three seller of internet advertising in the world, now the question is: where do we go next?"

Microsoft's statement of intent comes as the latest US figures from Nielsen//NetRatings show it controls an estimated 8% of US searches, compared with Google's 51%.

Ballmer did not rule out Microsoft making acquisitions to bolster its faltering position as a provider of internet search.

He said: "There may be blockbuster [deals], but the number one thing for us is our development and let's call them technology acquisitions."

However, Ballmer also suggested Microsoft would take a different approach to that of rival Google, suggesting there is plenty of room for innovation.

He said: "The [search] experience leaves a lot to be desired. Something like 50% of searches don't actually result in the answer to the user's question. The average search, I think, is 2.1 words.

"Isn't that odd? Why don't people type more into search queries? Because they have learned the more you type, the more false positives you get."

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