What 'Microhoo' means for Google

Size really matters to advertisers in the search market. More data means more relevant searches and ads, which means more money can be charged to advertisers. It's a fact that Microsoft CEO Steve Ballmer said unfairly benefits Google, as many ad companies were less willing to deal with Microsoft or Yahoo because each maintained a tiny fraction of the market compared to the search leader. But Ballmer said a combined effort "provides consumers and advertisers ... with a real No. 2 advertiser in search." Even if Microhoo doesn't make a run at the top of the search market, some argue that the deal is good for both firms, advertisers and consumers. "Overall, the deal makes sense," said Shar VanBoskirk, search market analyst at Forrester Research. "It potentially creates synergies between the two firms -- each had a gap the other one could fill -- to create another one-stop-shop and a stronger second-place player." VanBoskirk said the consumer experience on Yahoo.com and Bing.com will improve, because data sharing will help Microsoft and Yahoo better customize content for each user. And with more relevant ads, advertisers will get more clicks and a better return on their investment.