Media companies like ours live and breathe all things Google.
Much of what we seek to accomplish online is focused on enhancing our profile through Google’s omnipotent search. Google sets the rules for how to rank most high and online media companies – including ours – work frantically to craft our prose in ways that move it up the ranking ladder of what Google says is most appealing to those who seek information. We’re resigned to the reality that Google has enormous clout and the ability to influence readers. It has become a vital engine for the distribution of online news and information.
It’s a disconcerting reality for journalists who – rightly or wrongly – believed their professional judgment determined the relevance of content to audiences. There’s a new reality on the Web. When it comes to online, although quality may still ultimately matter most, content must adhere to the search criteria of Google in order to gain the widest possible views. In many ways, Google controls the most significant part of mass distribution. In other words, you might have a great story to tell, but if you haven’t applied the SEO principles of Google, then there’s a good chance it might not be seen. That’s incredible mass media power.
And that’s the thing that worries me most about Microsoft and its $44 billion bid for Yahoo. Assuming it happens, there’s a strong potential of at the very least adding another such major player to this content distribution mix. Perhaps under Microsoft stewardship, Yahoo may eventually usurp Google. It’s not such a ridiculous notion if you reflect on IT history and the rise of Windows Internet Explorer and the demise of Netscape Navigator.
There can be little doubt about Microsoft’s next great venture. It is to “own” the distribution of all things online. That was confirmed to me late last year during a frank discussion with a Microsoft Canada official, right around the time of an announced advertising distribution deal with social-networking community Facebook.
“Content is king and distribution is King Kong,” the Canadian official told me during an interview. He further went on to say that Microsoft will in the future invest in where “technology makes a difference,” citing Web-based mail, social networking and search technology as “investment targets.”
Ironically, I was told by the official that Microsoft would like to be “the clear Number 2 in the market in terms of search,” and he admitted the company was in a battle with Yahoo for that position.
If I were a conspiracy theorist, I might suggest that Microsoft’s play is to control the distribution of online content. The more accurate reality is that Microsoft is not much interested in content, at least not from a creation standpoint, and instead sees dollars – lots of them.
It was clear in my discussion with the Microsoft official that the company is all too aware of the untapped potential of online advertising spend. It’s absolutely massive. The official admitted that such online services have the potential to be the company’s largest business segment in the future. Microsoft wants to drive the online engine for advertising but will also control how content gets categorized, popularized and ultimately viewed. Perhaps they will achieve a dominant position. That seems to be the Microsoft pattern and I wouldn’t bet against them.
Ironically, most IT media companies would list Microsoft among its largest advertisers and sources of revenue.
The tables are about to be turned.