Microsoft to spend $2.25 billion a year on search

Search Marketing with Bing.com

Steve Ballmer’s is on a battle front in the online search engine market with the launch of Bing, he has made his intention very clear that Bing will be a serious contender to Google and Yahoo’s share in the search market. Microsoft’s share of the US searches is about 8 % , a distant third behind Google and Yahoo.

A look at Microsoft’s different search efforts in the last six months (the bid to buy Yahoo’ search capabilities and the successful launch of Bing ) shows that Steve Ballmer is a persistent guy. And now, Ballmer may be ready to try harder than ever, as he’s voiced a willingness to spend something like $2.25 billion per year on search.

According to Reuters , Ballmer said at a business lunch, “Our shareholders, I told them we were willing to spend 5 to 10 percent of operating income for up to five years in this business, and we feel like we can get an economic return.”

Bing grabbed 12.1 % of the US Internet searches for the june 8 – 12 work week, up from 11.3 % from June 1-5 compared to Google’s 65 % of US searches in May. Ballmer is counting on Bing’s ability to provide more focused search results to lure web users away from Google and Yahoo. Bing was launched this month replacing the company’s previous Live search engine.

Microsoft’s operating income in 2008 equaled $22.49 billion, so that’s a not-quite-commitment of about $1.12 billion to $2.25 billion annually or more, since Microsoft’s likely to pull in greater sums of money in the years ahead.

Ballmer said, “In our industry, the number one mistake that people make is that they quit too early. We should have started earlier, but we’ve got our mojo working now I am willing to be patient to give Microsoft’s Bing search engine time to catch on with web users ”

Article by ZK

ZK has written 760 articles.

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  • Web Developer June 21, 2009, 5:35 pm

    There is no doubt Steve Ballmer is very persistent , with Bing he sees hope to take Google and Yahoo in the search race…
    .-= Web Developer´s last blog ..Microsoft to spend $2.25 billion a year on search =-.

    • writers Needed- Make $200/Daily June 25, 2009, 11:53 am

      Wow, this is pretty cool. I wish I had that much money to dish out on a software comanpy. Steve ballmer might be consistent, and hopefully he can outdo Google, cause many webmasters are fed up with them and their policies anyway.

  • Terry@ Scrub Tops June 21, 2009, 9:39 pm

    I think they have to make Bing a whole lot better before they pour money into adverting the heck out of it. I remember this one guy saying that you should never go viral unless your product or service is really very good. If you go viral early, people are just gonna tell other people how your product or service, well, sucks.

    But Bing is really good already. Make it better and I might just do the switch..along with thousands of people.

  • Bubba Moe June 21, 2009, 9:57 pm

    It can race with Yahoo and Google there will be good competition between these two. Bing a good search engine and its better. Microsoft money will not be waste.

  • web outsourcing services June 21, 2009, 11:03 pm

    Microsoft seems to be a little overambitious with their Bing approach. They are spending a lot of money on Bing, but I don’t think they will be able to beat Google in search engine market.

    • medium readings June 22, 2009, 1:31 am

      Its a very good competitions let find who will win this race. I had spent some time on Bing its better.

    • ZK@Web Marketing Blog June 25, 2009, 8:05 am

      Google is way ahead , no doubt but I like Microsoft’s approach on Bing..We need a few players in the search marketing front to keep the Google team busy.
      .-= ZK@Web Marketing Blog´s last blog ..Microsoft to spend $2.25 billion a year on search =-.

  • round stickers June 21, 2009, 11:48 pm

    Its look like a competition with Google and yahoo Bing have making some good improvements and every one have its own worth.but amount of spending by Steve Ballmer is great its show the its deep interest in search engine competition.

  • Seaward June 21, 2009, 11:51 pm

    I have used the bing and it is really very impressive the theme is also very attractive. You are right that it is a big contender of google or yahoo search engines.

  • Marcos Placona June 22, 2009, 2:44 am

    I really do think Bing is a big waste of time. I know it’s all impressive and beautiful and stuff, but it’s basically a rip-off of what we already have, without implementing even a single new feature.

    I don’t want to hurt anyone with my comments here, but that’s exactly the kind of thing I’d expect from Microsoft. they seem to be masters in this kind of things.

  • kitchen taps June 22, 2009, 6:16 am

    I think bing is used to spend lots of money by microsoft for just making the competition with yahoo and google but it won’t be able to beat google in the market.

  • Test Equipment June 22, 2009, 5:07 am

    all are know that yahoo and Google are big competitors that why they spend such amount for bing search Engine.

  • PRINCE2 training June 22, 2009, 5:27 am

    Well, MS has a long way to go confronting GOOGLE. By saying “Bing Is Not Google” might be a good start, well focusing on money spent is probably not a good strategy. MS always tends to miss the point.

  • Make Money Online June 22, 2009, 8:03 pm

    I believe that Bing search engine will be 2nd largest search engine in the World Wide Web after Google search engine. Anyway, I don’t think Bing can take over Google search engine.

    Regards,
    Lee

  • Colleen@Kennewick Wa Real Estate June 23, 2009, 6:54 am

    I hope Bing takes off as we seem to be doing well in their SERPS. However, I’ve read too many folks complaining BING’s algos are off.

    • ZK@Web Marketing Blog June 25, 2009, 8:30 am

      This blog never got any traffic from Live :) , with Bing it get a steady flow of traffic on a daily basis. The algo seems to be better than Live.
      .-= ZK@Web Marketing Blog´s last blog ..Microsoft to spend $2.25 billion a year on search =-.

  • paul June 23, 2009, 10:32 am

    Wow that is a ton of money! I am kind of glad to hear it tho.
    .-= paul´s last blog ..Crooked Houses Prices =-.

  • earn money writing June 23, 2009, 10:33 am

    Let’s see if they will be able to continue to spend that much money after a few years.

  • Michelle@Adwido video marketing June 23, 2009, 11:13 am

    My guess is that it is the search engine competition time!

  • Diabetic Diet Plan June 23, 2009, 12:01 pm

    just recently got 1600 microsoft points, and idk how to use them. Everyone saids castle crashers is good, but its 1200 points and thts almost all my points.

  • Gerri June 23, 2009, 12:43 pm

    Only thing is that I do not see them ever really competing with an entity like Google. But you never know, I guess time will tell.
    .-= Gerri´s last blog ..The “I Just Want Your Money” Story =-.

  • Tycoon Blogger @Promote your blog June 23, 2009, 8:04 pm

    I have used Bing and I really like it. I do think they will pass yahoo soon and leave them in the dust. Can they beat Google? I thnk that is unlikely but I hope they do.
    .-= Tycoon Blogger @Promote your blog´s last blog ..Top 10 Blog Designs =-.

  • game-girl June 23, 2009, 11:42 pm

    I have nothing bad to say about Bing and the time will show the results and the progress in this direction.

  • Payday June 24, 2009, 12:42 am

    Bing performs better for ‘specific’ key words by providing better search results than Google. But still Google is the best!

  • Hindi Radio June 24, 2009, 1:24 am

    That is really huge amount in compare to the popularity of the bing (or any microsoft previous serach engine) against Google and Yahoo! Still Bing is new and has to prove itself a lot. Also people have a mindset for seo as well so bing should be fitted in that mindset to gain some more popularity!

  • gas safety london June 24, 2009, 2:46 am

    taking over google, can’t see that.. Yahoo possibly!

  • Sire June 24, 2009, 3:17 am

    Well it may be a hard road to success, but I hope BING pulls it off as Google has had the monopoly for far too long. Perhaps they should have spent a bit more time on choose the name, as one of the previous commentators said BING can easily be turned into But It’s Not Google, and that can’t be good PR ;)
    .-= Sire´s last blog ..Helium Helping Writers Fulfill Their Dreams =-.

  • Lena Steuern@ sicher Kaufen und Verkaufen June 24, 2009, 10:01 am

    You just can’t imagine such huge sums of money, can you? It’s crazy! I think Bing will give Google a good run for it’s money, but I don’t know if ANYTHING could ever beat Google? Surely if there is anything out there that could, Bing is the thing to do it?! We’ll have to wait and see

    • ZK@Web Marketing Blog June 25, 2009, 8:37 am

      I am not sure how much Google spends on search every year , the amount would be bigger than $2.25 billion or at least close to that. We ll need to see sustainability of Bing over the next few months.
      .-= ZK@Web Marketing Blog´s last blog ..Microsoft to spend $2.25 billion a year on search =-.

  • work at home June 24, 2009, 6:00 pm

    Bing is really a great search engine. Very easy to navigate and all. They need to bring something unique to this search engine though it has potential.
    .-= work at home´s last blog ..Unique IP Class C Backlinks For Work At Home Bloggers =-.

  • Payday Loans June 24, 2009, 9:22 pm

    Bing has to sustain this increase in share in search engine market. But some of the search results are better than Google!

  • Bubba Moe June 24, 2009, 11:35 pm

    Bing will be dominate. It will run a long race. Its working good right now let hope for the best in future.

  • medium readings June 25, 2009, 12:38 am

    If you go viral early, people are just gonna tell other people how your product or service, well, sucks.

    But Bing is really good already. Make it better and I might just do the switch..along with thousands of people.

  • Kit Homes June 25, 2009, 12:58 am

    $2.25 billion for a year on a search its seems too expensive. But Bing’s result are very good.
    .-= Kit Homes´s last blog ..Are there any Exclusions? =-.

  • Steve June 25, 2009, 2:47 am

    Bing should try to sustain this momentum! Moreover the search results for some specific terms are really better than Google!

  • matt@affordable hosting June 25, 2009, 1:03 pm

    I thing Bing is awesome and I am glad to see that we have a persistent competitor to Google. I just wish they could get more than 15% – 20% of the searches so Google would have more competition.

  • paul June 25, 2009, 6:23 pm

    If they can sustain this hype, they will start to make a name for themselves!
    .-= paul´s last blog ..Michael Jackson Dies =-.

  • earn money writing June 25, 2009, 6:24 pm

    I like BING but are they are good as google in terms of search
    .-= earn money writing´s last blog ..Welcome to How-to’s =-.

  • game-girl June 25, 2009, 9:35 pm

    The amount of money they spend is really tremendous and if the goal to be the first is set,it willbe achieved very soon.

  • Shawn June 26, 2009, 3:14 am

    I don’t think Microsoft can ever take over Google. and Bing is just not worth using i guess… many such will come an go (Remember Cuil??) but no one can beat Google!

    • Kit Homes June 27, 2009, 3:15 am

      Google is ultimate its still unbeaten. and i thinks it remain.
      .-= Kit Homes´s last blog ..Are there any Exclusions? =-.

  • Web Hosting June 26, 2009, 4:08 am

    Wow they are really trying their best to compete with Google but I believe that it will take them quite some time before they will be able to.

  • Chuggin@home coffee makers June 26, 2009, 3:15 pm

    I think that the launch of Bing will give Google and Yahoo a run for their money in the search engine market. Ballmer seems like he’s very driven and is not a quitter at all!

    • Kit Homes June 27, 2009, 3:14 am

      Yes you are right about this matter. Microsoft wants that.
      .-= Kit Homes´s last blog ..Are there any Exclusions? =-.

  • gas card June 27, 2009, 12:15 am

    Personally I hope that Microsoft does increase their number of searchers, I think they could grab a good share, and probably over take yahoo just with aggressive marketing, and TV ads, things like that. But ultimately their own search engine is going to have to increase its quality, otherwise those knew found customers won’t stay very long.

    -Randy

  • Pip June 28, 2009, 3:43 am

    Atlast Microsoft is down to their feet, this only shows how much the search engine business is of value. Surely Bing appears to be the only bot which can subvert the monopoly of Google. Surely the arena needs more of Bing. Good luck.

  • watch Replica June 30, 2009, 1:02 pm

    I do think they will pass yahoo soon and leave them in the dust. Can they beat Google?

    • gas card June 30, 2009, 3:38 pm

      @Watch Replica, I think its too early to tell, we will likely know in one year’s time.

      -Randy

  • joel@MLM Software June 30, 2009, 11:13 pm

    No way… It is little difficult for ping to beat yahoo & google in the race. Does it?
    .-= joel@MLM Software´s last blog ..Home =-.

  • IT Certification Training News July 1, 2009, 6:34 am

    I hope if they get some thing new then at that time google will move 2 the next step …We shdnt under estimate google
    .-= IT Certification Training News´s last blog ..Windows Server 2008 – Powerful Webhosting =-.

  • brian@Structural Sandwich Panels July 7, 2009, 1:34 pm

    Bing is a lousy SE with loads of spam. This engine is easy to game and rank on page #1. If MS wants to really compete with Google, they will need to upgrade their algorithm. Bing is years behind G. I don’t see them catching up.

  • Narty Studenckie July 8, 2009, 1:44 am

    I’m sorry but I don’t think bing will get a big portion of the market. Google just dominated the market – too many sites are dependant on google accounts to just dismiss google completly. And since you’re already using it, why look for other search engines?

  • Frank Polenose September 12, 2009, 4:02 am

    I think Bing have actually worried Google – be interesting to see how this pans out over the next 6 months.

  • Lee Shenstone March 18, 2010, 1:22 pm

    Bing still have a much longer way to go before they are anywhere near the big one!

  • esop May 9, 2010, 7:55 am

    Don’t count Bing just out yet, they had a huge success on their latest Operating System the Windows 7. Bing is slowly but surely catching up with Google.