Summary
Google's recent search refinement is more a reassertion of its search prowess.
Bing's market share aspirations are not to topple the top dog, but gain on the distant 2nd and 3rd place search players.
Analysis
Bing is little more than the sound of a pin dropping. At least to Google's ear. Google's somewhat recent product developments could appear to be a real push-back to Bing, but are more likely an acknowledgement of the differentiation Bing is spending millions to convey. While Bing is spending an amount necessary to make its mark as a source of (more) relevant results, Google's product changes say, "Does Bing offer a big difference? Not so much."
What is the big difference Bing is conveying? Bing is hanging its hat, to the tune of a $100MM ad campaign, on bringing a finer edge to search result relevancy. Microsoft watchers recognize the company's signature here: take a phenomenally popular product or service, and (attempt to) improve upon it. Microsoft is to technology what the Japanese historically were to the automotive sector. Regardless, Google has responded to the relevancy difference asserted by not making much of the difference: a minor product change shows off Google's ability to deliver relevant results, too.
Business Week's article, "Google refines search results to counter Microsoft," overstates the case. "Countering" is perhaps a full-on rebuttal. The numbers explain why a true counter, or rebuttal, is entirely uneccessary. Microsoft's share of the search market, aided by Bing, is 9.3%. Google's is 65% (as high as 75% according to bullish tech-insiders). This means that over 65% of the 200,000,000 searches performed daily start at the Google search engine. With a lead like that, wouldn't Google be more apt to remind Microsoft of its place in the search pecking order, than to bother to counter Bing's assertions?
Google merely reminded the market that it's the big (big, big, big) dog, vs. displayed stimulation to compete directly with Bing and Microsoft over Bing's big spend. In doing so, Google also may have signaled that Microsoft and Bing are a search players to watch. Bing's affect on the rest of the pack, or those ranking far behind Google, will be a more interesting story.
This author consults with leading institutions through GLG
Analyses are solely the work of the authors and have not been edited or endorsed by GLG.
