Yahoo has been struggling to regain the search users it once had in the past, but it has certainly been an uphill battle for the search engine that controls just 12 percent of search traffic. Bing and Google have easily pulled ahead, and even with a new CEO and a new look, Yahoo just hasn't made headway. Recently, this has led to a few current events: They entered into a partnership with Microsoft, they currently want out of this partnership but are stuck, and so they decided to announce new search tools coming soon for users. Below explains their current status and whether or not these new tools are going to be the big break they really need.
The Yahoo Deal With Microsoft: Why They Want to Get Out
Yahoo hasn't been shining any spotlight on this accusation, but they haven't denied it. The Wall Street Journal was one of the first to come out with the story, and since then many others have offered opinions as to why Yahoo wants early out of the 10-year deal and why it just can't happen. The biggest reason is RPS goals.
- RPS Goals. The biggest speculation is that Microsoft wasn't helping Yahoo grow as a search engine, or improve the revenue per search (RPS) goals that were assured. Microsoft has, however, renewed the deal and promised that the goals will be reached this time around.
So why can't Yahoo get out? It's because the RPS goals were low enough that Microsoft had to promise to do better (guarantee to do better), but they weren't low enough to let Yahoo out of a 10-year deal. The number that the RPS has to reach has to do with the estimated RPS for Google. Looking at the numbers, we also have to remember that Microsoft is a much more successful and powerful company than Yahoo, and Yahoo needs them to remain afloat (especially in the short term). You can learn more of the specifics here.
New Search Tools Announced by Yahoo
Unfortunately, Yahoo is keeping quiet about the ins and outs of the new upgrades coming soon, but new CEO Marissa Mayer has definitely made it known that big changes are coming. The changes are scheduled to come out over the next few moths, many of which are going to be created with Microsoft. Bloomberg interviewed Mayer about the changes ahead, and she offer this brilliant quote:
"You can be a winemaker because you grow your own grapes, or you can be a winemaker because you do them in a certain style. Most of the innovation on search will happen in terms of the user interface."
All we know so far is that the majority of the new tools and upgrades will center around mobile, and we will know for sure in the coming months..
What the New Tools and the Microsoft Deal Means to You
It's tough to know what exactly all of this news means because we have yet to see any substantial numbers in terms of Yahoo's growth, but it's something to have on your radar. Yahoo is going to been revealing new tools and new upgrades soon, and Microsoft is under more pressure now. It's also worth noting that Mayer, Yahoo's new CEO discussed above, previously helped Google get to where it is today.
Everyone involved knows that if they don't succeed this time, it could be the end. My advice: I would keep an eye on the new features of Yahoo, but put most of my resources into Google and Bing.