As Bing Sees Big Gains, Is Microsoft Cool Again?

Under the tutelage of Bill Gates, Microsoft exploded into one of the world’s largest and most valuable companies, generating billions of dollars in profits annually for shareholders. The dot-com boom made many employees and investors millionaires, and the company appeared unstoppable.

As the company matured, growth stabilized and new tech darlings like Google stole the spotlight. Delayed product launches of centerpiece operating systems, failed products and advertising campaigns, broken acquisition deals and an apparent lack of internal innovation gave Microsoft a reputation as a “has been” that had passed its prime, and current CEO Steve Ballmer lost the confidence of many investors.

Bill Gates and Jerry Seinfeld Microsoft Ad

However, new data is showing that Microsoft may be experiencing a reversal of fortunes, as the company’s investments in search are beginning to pay off. The brutally competitive search engine market has had one dominant player for the last decade – Google – which has held as much as 80 percent of the United States search market.

In October 2010, the U.S. search marketshare breakdown was as follows: Google (72.15%); Yahoo + Bing (23.64%). The most recent Hitwise data shows Bing has made substantial gains at the expense of Google and Yahoo. Bing-powered search now controls 30.01% of the U.S. search market, while Google’s share has fallen to 64.42%. (See below: Image courtesy of Mashable.)

Bing vs. Google

These gains may be the result of a major multi-platform ad push by Microsoft for Bing, but the trend is a positive sign for investors and spectators that have remained loyal to the company.

Strong performance in search, high expectations for tablet and PC versions of the upcoming Windows 8 platform, new developer confidence in the Windows Phone platform following the recent Nokia partnership announcement, the smashing success of Kinect and Xbox 360 and widespread adoption of Microsoft’s iPhone and iPad apps are powerful indicators of a possible Microsoft mindshare and marketshare resurgence.

Bing iPad App

Less than a decade after Wall Street and Silicon Valley critics alike pronounced the death of Apple as a legitimate player in the lucrative personal computer market, the world has witnessed the resurgence of the Cupertino-based company as the dominant force in the rapidly-growing world of consumer electronics. Could we be seeing the beginning of an Apple-esque Microsoft turnaround? Critics will call it wishful thinking, but with Google in the process of a massive leadership change, Yahoo! undergoing a drawn-out transition phase and the tenure of Apple CEO Steve Jobs uncertain, the competitive landscape is changing and Microsoft has substantial opportunities in search, PCs and mobile.

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About Michael Dossett

Inactive since Sept. 2011

Posted on April 14, 2011, in Uncategorized and tagged , , , , , , , , , . Bookmark the permalink. 3 Comments.

  1. I’m not sure if they’re there yet…but they are definitely making good changes. I never understood why a company raking it in by the tens of billions every year could be considered weak but what do I know…Btw I switched to bing last year.

    • I agree, Nathan. They are making several strong steps on their way to a “comeback.” It is difficult to say a company generating record profits needs a “comeback” but Microsoft is a unique case. They need to step back into the forefront of consumers’ minds. There’s a lot of tough competition for them right now in mobile, search, OS and gaming but they’re making strong headway.

      Thanks again for the comment, Nathan. Always a pleasure hearing your thoughts.

  1. Pingback: Is Google Offers Too Late to Compete? [Update] | Michael Dossett

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