Microsoft

Description

Companies that own and operate search engines and other categorized Web sites used to find information on the Internet. 
 
INDUSTRY OVERVIEW:

The upside of computers and the Internet is that the public has greater access to more information than ever before in human history. The downside: with so much content out there, it can be impossible to find anything. The business of Internet search has become one of the fastest growing sectors in the online industry, with sales expected to top $5 billion in 2005. Unlike other kinds of Web content that is typically created by writers and editors, search engines employ technology to retrieve and index information stored on servers across the Internet. Then when someone searches for a word or phrase, it will return links to Web pages that contain matching keywords. Most search engines also try to rank their search results so that links to the most relevant information are returned first. Most companies that operate Internet search sites generate revenue primarily through advertising. The Internet search market is dominated primary by three companies: Google, Yahoo!, and MSN. The champion of online search engines, Google, rose to prominence on the power of its search routines, its accurate results, and its geeky approach to business. MSN, an online service of software maker Microsoft, is a relative newcomer to the search business (it previously licensed Google's search engine for its site) but comes to the party with a dedicated and loyal audience that has been using its news and information portal, chat programs, and free e-mail for years. Stuck somewhere in the middle is Yahoo!, a pioneer of Internet navigation services that offered one of the first and most comprehensive Web site directories that has now developed its own search technology. Rounding out the industry are such companies as Ask Jeeves, Lycos (owned by South Korea's Daum Communications), and LookSmart. Most of these Web sites serve international markets through localized versions of their English sites, but there are some search companies targeting non-English speaking audiences, such as China's upstart Baidu.com and Lycos Europe. Sponsored Internet search has been around for some time, but the dot-com bust put the viability of ad supported content into some doubt. Then in 2001 Google launched its advertising services, AdWords and AdSense, which use the search engine's highly accurate results and matching capabilities to target ads not only on its own site but also on third-party sites. For instance, a person searching for "Asian travel" might see ads for travel agencies or special ticket prices on flights to Japan and respond to those links. The new technology spurred renewed interest in online ads, both on the buying and selling sides. Following in Google's footsteps, Yahoo!, MSN, and Ask Jeeves have all launched or announced plans to introduce similar targeted ad services. Internet search technology has also expanded beyond finding documents to power a host of new services. Comparison shopping services such as Shopping.com, Shopzilla, and Google's Froogle index e-commerce sites and help consumers find the lowest prices on products, and the combination of localized search results and detailed maps gives users new ways to find information close to home. Perhaps more importantly, indexed news services such as Google News and Topix (operated by Zandica) gives the public greater access to more news and information sources than ever before. With new innovations being rapidly introduced, it is clear that the potential for search technology has been barely breached. Google has started indexing multimedia content on the Web, an idea that has sent shockwaves through Hollywood, and Yahoo! has launched a service to search subscription content from such providers as Factiva, LexisNexis, and The Wall Street Journal Online. Meanwhile, new desktop search applications not only help computer users find data hidden in folders on their PCs, but they are starting to bridge the gap (or grey the line) between the computer desktop and the Internet. These kinds of technologies could help search engines to become the ultimate gatekeepers in a future of ubiquitous access to information.

Disney Cable Networks

Description