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Outsell, Inc. Outlines Key Differences Among Google, Yahoo! and Microsoft MSN, From Revenue Models to Vulnerabilities

Posted on: Tuesday, 21 February 2006, 12:00 CST

Report Advises Publishing and Commercial Information Companies on How to Maximize Relationships With These Three Powerhouses

WHAT:

The three most influential and highest revenue generating search engines -- Google, Yahoo! and Microsoft's MSN -- are powerful and disruptive enough to be considered an entity of their own, earning the moniker "GYM." However, their blow-by-blow exchanges announcing developments as if they were all directly competitive can be misleading. Each brings different strengths and orientations to the table.

Outsell, Inc.'s latest HotTopics report, Bulking Up at the GYM: How Publishers and Information Providers Can Work with Google, Yahoo! and MSN, will arm other information, media and publishing companies to achieve detente with GYM, and benefit by their presence. The report provides a side-by-side comparison of the GYM players' key differences in business and revenue models, missions and cultures, trends in customer usage, challenges and vulnerabilities, and overall marketplace positioning. It is part of the firm's ongoing coverage of search and its role in the expanding information and publishing industry.

KEY DIFFERENTIATORS AMONG "GYM":

Unique market approaches, based largely on unique roots and culture.

-- Google is, at heart, a search and technology company; hence its evolution is largely marked by a broad range of technology tools and initiatives. Google's other defining characteristic is its almost 100 percent reliance on advertising as a revenue source, via AdWords and AdSense.

-- Yahoo! has its roots in human-generated directories and portals, so its initiatives and acquisitions reflect a more "humanistic" approach to providing users with information and tools. Its revenue model is more balanced than Google's, using search advertising, banner ads, and content sales to fuel growth.

-- Microsoft, owing to its software roots, continues to seek ways to expand its virtual monopoly on the desktop. The lion's share of Microsoft's revenue comes from software, while MSN generates added revenue via everything from Internet access to content purchases.

While Google and Yahoo! are in a veritable horse race, as measured by revenue numbers, MSN is out to pasture with low single-digit growth. In the race for 2004-2005 growth, Google hit the finish line first, with an estimated growth rate of 92.5 percent. Yahoo! took the silver medal with an estimated growth rate of 47.1 percent, and MSN barely captured the bronze at just 2.6 percent.

ESSENTIAL ACTIONS:

The report also provides advice and essential actions for publishers, media and information companies that want to leverage the revenue opportunities that "GYM" provides, and achieve a competitive advantage by "filling in their gaps."

Outsell is available to explain the trends in the report to journalists. To arrange an interview, please contact Dawn Ringel, Warner Communications, 781-449-8456 or dawn@warnerpr.com. To purchase this 29-page report and learn more about Outsell, go to http://content.outsellinc.com/coms2/summary_0245-2902_ITM or contact Outsell directly at 650-342-6060 or info@outsellinc.com.

ABOUT OUTSELL, INC.:

Outsell, Inc. of Burlingame, CA is the leading research and advisory firm providing actionable market analytics for the information industry. Founded in 1994, Outsell helps publishers, commercial information providers, and content software technology vendors identify, maintain, and grow markets and revenue streams. Outsell also works with information management executives in top corporations, government agencies, and educational institutions to benchmark spending, optimize performance, and demonstrate best practices. Outsell invests heavily in unique information industry data assets that form the core of its high-quality, fact-based research, analysis, and recommendations for clients worldwide. For more information, see www.outsellinc.com.

Source: Business Wire

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