BING!-Microsoft's new search engine• Launched May 28, 2009• Appealing interface• A “decision engine” not

just a search engine*Shopping, health, travel, local businesses

• Online search is a $12 billion business.

• Search ad spending is nearly 50% of all online advertising.

• Technology has played a major role in advancing the search industry.

• The rest accounted for by over 100 less popular and The rest accounted for by over 100 less popular and specialized search engines specialized search engines 

• Google stands out as a “pure” search engine, since the Google stands out as a “pure” search engine, since the major line of business is search major line of business is search 

• Others like Yahoo and AOL are content portals. Others like Yahoo and AOL are content portals. Microsoft’s advantage is that 95% of the world’s Microsoft’s advantage is that 95% of the world’s desktop computers use their operating system desktop computers use their operating system 

• Google’s competitive advantage is its superior software technology, efficient hardware architecture, and excellent Web site design.

• It was started by two Stanford graduate students, Sergey Brin and Larry Page, who were studying data mining and data analysis. 

• Originally search engines like Alta Vista would just count how many times a search term appeared in a Web site and would rank them accordingly.

• Inspired by Jon Kleinberg, a Computer Science professor from Cornell, Brin and Page further enhanced an algorithm that rates pages based on links

• The result was called HITS, Hyperlinked The result was called HITS, Hyperlinked Induced Topic Search, an algorithm for Induced Topic Search, an algorithm for

automatically identifying the leading hubs and automatically identifying the leading hubs and authorities in a network of hyperlinked pages authorities in a network of hyperlinked pages 

What does that mean?What does that mean?• When you search on a topic the HITS algorithm takes When you search on a topic the HITS algorithm takes you to those pages that are ranked high in authority and you to those pages that are ranked high in authority and

high in the links they have to other sites high in the links they have to other sites 

• Almost all search engines today use some form of this Almost all search engines today use some form of this algorithm, which is open sourcealgorithm, which is open source

•The HITS algorithm also uses the popularity of Web pages The HITS algorithm also uses the popularity of Web pages as the primary criteria for ranking along with page content.as the primary criteria for ranking along with page content.

•The more other Web pages link to a particular page, the The more other Web pages link to a particular page, the higher it jumps in Google’s ranking structure called higher it jumps in Google’s ranking structure called PageRank. PageRank. 

•This is known as ‘link analysis’ and is run independently of This is known as ‘link analysis’ and is run independently of the query being made Other components include the number the query being made Other components include the number of links, text content, link structure, proximity of search of links, text content, link structure, proximity of search words, fonts, heading, and text of nearby pages.words, fonts, heading, and text of nearby pages.

•Unlike the HITS algorithm, PageRank was invented solely by Unlike the HITS algorithm, PageRank was invented solely by Sergey Brin and Larry Page and is therefore patented by Sergey Brin and Larry Page and is therefore patented by Stanford UniversityStanford University

~How many servers does Google have?How many servers does Google have?

~ What type of software Google uses?~ What type of software Google uses?

~What does Google offers to people in its ~What does Google offers to people in its search engine?search engine?

• Microsoft believes Bing is the only real competition Microsoft believes Bing is the only real competition for Google in the future.for Google in the future.

• Microsoft is very serious about the search as the Microsoft is very serious about the search as the centerpiece of its online revenue.centerpiece of its online revenue.

• In May 2008 Microsoft offered to pay $47.5In May 2008 Microsoft offered to pay $47.5

billion for a 16% share of Yahoo and outrightbillion for a 16% share of Yahoo and outright

ownership of Yahoo's search engine, and theownership of Yahoo's search engine, and the

banner and search engine ad business built on banner and search engine ad business built on

Yahoo's huge Internet audience of over 150 million Yahoo's huge Internet audience of over 150 million in the United States.in the United States.

• Yahoo would have netted over $1 billion a year Yahoo would have netted over $1 billion a year in revenue from this deal, but it was rejected by in revenue from this deal, but it was rejected by Yahoo's then president who was later fired by its Yahoo's then president who was later fired by its Board for refusing the offer.Board for refusing the offer.

• Microsoft launched Bing with a $120 million Microsoft launched Bing with a $120 million marketing effort backed up by another $100 marketing effort backed up by another $100 million in "partnership deals" with HP, Dell, and million in "partnership deals" with HP, Dell, and Verizon.Verizon.

• Bing will likely appear as the featured search Bing will likely appear as the featured search engine on many hardware devices you engine on many hardware devices you purchase.purchase.

• July 2009, Microsoft finally convinced Yahoo to July 2009, Microsoft finally convinced Yahoo to partner with it on search, and setting the stage partner with it on search, and setting the stage for a renewed assault on Google.for a renewed assault on Google.

• Bing will become Yahoo's search engine in a 10 Bing will become Yahoo's search engine in a 10 year deal.year deal.

• This deal gives Microsoft access to the Internet's This deal gives Microsoft access to the Internet's search engine audience.search engine audience.

• Yahoo will retain 88% of its search engine ad Yahoo will retain 88% of its search engine ad revenue without having to continue investing in revenue without having to continue investing in search engine technology.search engine technology.