Google and Yahoo's performance is booming for two days because of different strategies

Source: Internet
Author: User
Yahoo's first-quarter operating revenue was $1.67 billion, less than half of Google's $3.66 billion. Google's performance once again exceeded Wall Street's expectations, while financial analysts openly doubt how long Simmel can sit in the position of Yahoo's CEO.
Let's take a look at the situation two years ago: The operating income of the two companies is basically the same; they are just fighting for Internet hegemony; people are wondering whether Google's management team can challenge Simmel. Few people have answered this question in a negative way. Stephen, author of The Google Legacy book, said Google is a racing car while Yahoo is a Honda car. The gap between The two cannot be narrowed in The short term.
Why is the fate of Google and Yahoo so different? Although there are many personal decision-making factors, many people attribute it to the following reason: Bet on advertising and technology, and bet on the media empire is wrong. John, author of the book "Search: Google and its competitors have changed business rules and culture", said Yahoo has been idle in two key fields for many years and has not updated and made full use of Overture's search ad technology, the search experience and quality were not improved for consumers and advertisers. He said Yahoo admitted that this was a mistake and it was an expensive mistake.
On the other hand, Google realized the potential of pay-as-you-go ads earlier and steadily improved its search and ad technologies. Of course, search is a big market. According to ComScore researchers, in February, Americans performed 6.9 billion Internet searches, nearly half of which were completed on Google. ComScore said that Google's market share in the United States was 48.3% and Yahoo was 27.5%; statistics from Nielsen/NetRatings showed that the gap between the two companies was even greater, google and Yahoo have a market share of 55.8% and 20.7% respectively.
Google is encroaching on Yahoo and Microsoft markets. According to ComScore figures, Google's market share increased by 6.1 age points last year, while Yahoo and Microsoft fell by 0.6 and 1.1 age points respectively.
Yahoo is not only not aware of the importance of search for Internet users, but also far behind Google's ability to convert search into revenue. Google's technological leader prompted it to become the largest search vendor and attracted the largest number of advertisers. The AdSense system also brings new revenue streams to Google.
Yahoo has launched a manually edited website directory, which has a three-year leading advantage over Google. Google uses the software "Spider" to create its own indexes on the Internet. It sounds incredible now. Yahoo has invested in Google in the early days and has been using Google's search technology until the beginning of 2004.
At the start of the business, Google's founders, Bulin and page, were unable to determine the business model to adopt. After the merger negotiations with Overture in 2001, Google began to adopt the click-based billing business model in early 2002. Yahoo acquired Overture in 2003.

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