Search Marketing Blog



How Search’s Top Dog Became Prey

Posted by Sean McMahon on 02.19.2008

In an outstanding article posted today on MarketWatch titled “How Yahoo went from Web star to Microsoft prey“, John Letzing dissects the “destructive technology misfires, mismanagement, and ego clashes” that have ostensibly contributed to the current position of the former search forerunner.

This article identifies that Yahoo!’s answer to improved search relevancy at Google, known as “Project Panama”, has been largely a failed effort. They back-up this claim by stating that last year, Google commanded more than 71% of the total U.S. search marketing revenue, compared to Yahoo!’s less than 9%, as reported by eMarketer, Inc.

Mr. Letzing piles on the criticism of Panama by including the following quote from Jim Friedland, analyst at Cowen & Co., “Panama and their [Yahoo!'s] investment in search came way too late. Google had already won the war.”

I’m interested in knowing if you have experienced better results, and/or included more client campaigns in Yahoo!, since Panama’s introduction a couple years ago. Let us also know if you perceive Panama will make Yahoo! a viable contender to the G-Men from Mountain View (whether under the auspices of Microsoft, or standing alone).

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