The Slower MSN Grows, The Harder It Will Be To Make Google Fall

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Well, looks like Yahoo! can relax a little bit after the earnings call for MSN. As reported in a ClickZ article, the projections are that MSN won’t be profitable until 2007 is a mere memory. Although MSN says all its search ads in the U.S., France and Singapore are now served up via the adCenter, there’s still lots of work to do in terms of continuing to build on what is there.

“We do not expect MSN to be profitable in this fiscal year [2007],” Liddell added. “We see for MSN that fiscal year ’07 will be an investment year.”

Is MSN just part of an infrastructure that is too darn large? Or are they just being cautious in their projections (that doesn’t sound like Microsoft to me)? What’s the deal here? Despite the rhetoric that has come out of Redmond lately about crushing the competition, if it’s going to take $500 million dollars over the next fiscal year and take the entire year to become profitable to boot, I don’t foresee much crushing on the radar. Yahoo!’s delay until 4th quarter for some of their new bells and whistles now seems like they’re on the fast track. And meanwhile … Google just keeps googling along. Play it smart, Google, and you’ve got almost a whole year to solidify things so much that anything Microsoft throws at advertisers will not be enough to make them jump ship. Just my two cents worth, as usual.

About the Author

Frances Krug has worked in market research since graduating from UCLA with an MA and CPhil in Latin American history. As an editor and online content provider for the last 7 years, she currently is Associate Editor at iNET Interactive, where she also directs Search Marketing Standard's email marketing program.

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One Comment

  1. This is hilarious. Do you know how many years MSN has had the "Investing Years" ? Nice excuse for poor strategy.