Microsoft and Yahoo! to collaborate again Google

Finally Microsoft has achieved its target, or nearly...The deal that has been signed between Microsoft and Yahoo caps more than two years of effort by Microsoft to get hold of Yahoo's search business in an effort to become a serious challenger to Google. Although less drastic than the $48bn bid for the acquisition of Yahoo that Microsoft had proposed last year, the move would be still be a very expensive one for Microsoft and it will not an easy one to implement but could help Microsoft to become a credible rival for Google.

Microsoft and Yahoo! have announced a ten-year revenue-share search pact. Microsoft's Bing will now power Yahoo! search while Yahoo! will become the exclusive worldwide relationship sales force for both companies' search advertisers.

Microsoft announced that the agreement will provide it's search engine (Bing) with the scale necessary to attract more advertising revenue and increase the visibility of the brand. This will enable it to compete more effectively with Google in an attempt to come out from a defensive strategy to a more aggressive competing strategy.

Microsoft will acquire an exclusive ten-year license to Yahoo!'s core search technologies, and Microsoft will have the ability to integrate Yahoo! search technologies into its existing web search platforms.

Should this deal pass antitrust scrutiny, do you think this relationship will be a successful one? Do you think Yahoo! and Microsoft will be a real threat for Google?

Microsoft Files lawsuit against individuals for fraudulent clicks

Last night I was reading some articles relating to the Internet and search engine clickthrough rates and came across an article that attracted my attention. It was the first time I came across a search engine owner that files a lawsuit again those that try to manipulate search results by creative clicking

The rivalry for search engine rankings can sometimes lead to "creative clicking"...where competing companies click on adwords, or paid for search results so as to deplete the advertising budget of rival companies so that Fraudster research results gain ranking and can then attract normal customer clicks.

The company in question in this case is Microsoft who is seeking at least $750,000 (£456,000) in damages from the defendants, claiming the three set up a number of false companies in March of last year and targeted ads for car insurance firms and the computer game 'World of Warcraft

In March 2008, Microsoft received complaints from car insurance advertisers who said traffic to their ads was spiking in a suspicious manner.

Microsoft investigated the claims and found an unusual number of searches for "auto insurance quotes" and a high click-through rate for the top paid search ads.

A similar scheme was being carried out with the keywords "World of Warcraft", Microsoft found.

Microsoft estimates the alleged fraud cost the advertisers in the region of $1.5m.

The company tracked down the source of the clicks and found the lion's share came from two Canadian-based proxy servers.

Microsoft claims that the three defendants set up fraudulent auto-insurance companies or worked with legitimate firms and bombarded the top-ranked ads with clicks, depleting the companies of their ad budgets and sinking their ad placements.

The defendants then placed their own ads on Microsoft's adCenter, which quickly rose in results rankings and were clicked on by actual customers. The group then sold the personal data of legitimate customers to low-level advertisers, Microsoft claims.

The lawsuit is a rare instance of a search engine going after individual advertisers and not the other way around.

Google was one of the first companies to do so in 2004 when it sued advertisers who were clicking on their own AdSense ads to make money.

Microsoft General Counsel said that this is a significant case. It shows that more companies are becoming active in the fight again online fraud which does not only entail credit card fraud. In this case, people where trying to change the economies of the game, by making it more expensive for companies who buy adwords."

According to Click Forensics, which measures global click fraud rates with its quarterly Click Fraud Index, about one in every seven clicks (13.8%) is fraudulent.