Microsoft's Lost $5.5 Billion On Bing (So Far)

 Pages 1 2 3 4 NEXT
 

Microsoft's Lost $5.5 Billion On Bing (So Far)

image

Not only is Bing nowhere near as big as Google, but it's losing Microsoft a lot of money.

Microsoft's Bing search engine was supposed to be a major game changer when it first arrived in 2009. Users could customize the page's appearance, the marketing campaign was clever, and it snagged some serious traffic at the time of its launch. The traffic has stayed high, but so has the expense: It turns out that Bing's cost Microsoft $5.5 billion in its two years of existence.

However, Microsoft has something to show for this expense. It currently controls a 14.7% share of the search engine market (though half of this traffic reportedly comes from the Microsoft-Yahoo! search deal). This presence on the Web has largely been taken from other smaller groups, since Google's share of the market is only down to 64.8% from a flat 65%.

Microsoft isn't going to abandon Bing any time soon, but it'll probably be quite some time before the service starts making its parent company some real money. Microsoft is banking on Web surfers changing how they search, using "natural language" and complete questions instead of keywords (which is what is used today).

Still, $5.5 billion is a lot of change to blow on a product that's still not turning a profit. It'll be interesting to see how long Microsoft continues to invest in Bing if it keeps losing money in disturbingly high amounts like seen in the graphic here.

Source: CNN via Geek

Permalink

For a second there, I thought that it said that Microsoft have lost $5.5 billion on bingo and was wondering if an ageing higher-up exec had an online bingo habit.

"Quickly...Something isn't working...DO SOMETHING!"

"THROW MONEY AT IT! That should do the trick."

It's good to see the economy is failing horribly so many are left screwed...But bing is...something I guess.

questionnairebot:
"Quickly...Something isn't working...DO SOMETHING!"

"THROW MONEY AT IT! That should do the trick."

It's good to see the economy is failing horribly so many are left screwed...But bing is...something I guess.

A drop in the bucket for those that can afford to spend that kind of money on Bing. Job creators at work.... I guess.

Thats Microsofts MO throw enough money at it and you gain market share.

If it wasn't for all of those OEM deals they have going on with their operating system, Microsoft would be fucked. One has to wonder when Steve Ballmer will step down. I know he loves the company. He makes it painfully clear every time he makes a statement, but sometimes there is a point where if you truly love something, it's best if you let it go.

I'm not really anti-Microsoft but I think it's promising to see that they can't simply use their position as the leading OS in the world to force their way into a market and take it over.

Also the concept of switching from entering key words to 'natural language' or 'full sentences' into a search browser is horrible. Only the completely computer illiterate would be comfortable with that idea, but as most probably aren't the best typists either they'll probably find themselves happier sticking with key words.

Bing?

I've... honestly never even heard of 'Bing' before.

MurderousToaster:
For a second there, I thought that it said that Microsoft have lost $5.5 billion on bingo and was wondering if an ageing higher-up exec had an online bingo habit.

That's the funniest misreading I've ever seen. Thanks!

OT: I just hope that it does turn a profit of some kind, because 5.5 billion is a crazy amount to lose..

Not a bad little search engine, but Google still looks and feels cleaner, and that's what I want from my webs.
Of course, I'm wondering if Microsoft seriously expected this to turn any profit any time soon. I mean, competing with Google isn't the most economically viable business strategy I've seen.

This is me on bing:

-search
-find irrelevant crap
-bing search for google
-use google instead

I wouldn't be surprised it the top search on Bing was "google".

I wonder how much of Bing's 7% share is down to how it is the default search on every device relating to microsoft?

Bing has been around for two years? And it's still not dead yet! Oh, they've spent 5.5 billion on it...

I wonder why microsoft feels the need to create their own version of everything
google - bing
php - asp.net
flash - silverlight
And i'm sure theres more i'm forgetting/unaware of.

questionnairebot:
"Quickly...Something isn't working...DO SOMETHING!"

"THROW MONEY AT IT! That should do the trick."

It's good to see the economy is failing horribly so many are left screwed...But bing is...something I guess.

...isn't spending the money kind of the only way to fix the economy? Its not like they're lighting that money on fire, $5.5 Billion of Microsofts money has gone to somebody else.

That'll teach them for those bloody adverts on every damned video I try to watch that's hosted on blip. Microsoft should stick to Operating Systems and consoles and try not to bugger them up.

RandV80:
Also the concept of switching from entering key words to 'natural language' or 'full sentences' into a search browser is horrible. Only the completely computer illiterate would be comfortable with that idea, but as most probably aren't the best typists either they'll probably find themselves happier sticking with key words.

You don't do tech support, do you? All those stories about people mistaking the optical drive for a cup holder, or using liquid paper to try and correct typing mistakes? Those happen. I've had to deal with some.

The fact is, most people under about 40 just think differently than older people. They've adapted to be able to think in ways that mesh with computers. People older than that, who still use Internet Explorer and get caught up in botnets, have no idea how the magical thinking box under their desk works. They don't know how to distill a query down to keywords because they've never had to do it before. If they don't know how to find something online, they call their kids or grandkids and ask them to find it.

My work uses Bing as the default search engine. I can't stand it. It doesn't come up with proper results as well as Google does.

If you want to REALLY perplex an old person, type your keywords out of order and still return completely relevant pages.

Their eyes gloss over as they lose hope in humanity for a brief moment.

RandV80:
I'm not really anti-Microsoft but I think it's promising to see that they can't simply use their position as the leading OS in the world to force their way into a market and take it over.

Also the concept of switching from entering key words to 'natural language' or 'full sentences' into a search browser is horrible. Only the completely computer illiterate would be comfortable with that idea, but as most probably aren't the best typists either they'll probably find themselves happier sticking with key words.

How is it bad exactly. I hated on google getting a bunch of random ass porn while searching for some science website that my teacher liked to use because he was a giant ass prick.

My point, I'm young and I'd rather not have to do random key word searches, which don't always work and barely get to what your going for, its like throwing your hand into a lake, legend says theres gold in the lake, but you will actually catch are pirahhnas, mad that you interrupted their lunch.

people need to stop trying to beat things by cloning them. it's souless and it never works.

Just the fact that the word 'google' is now verb meaning 'to search for something on the internet' should have shown Microsfot that Bing was a bad idea.

Need to find something? Just google it on Bing...

That makes sense. They tried to take down Google at its primary function, and never became popular enough to threaten it. Hell, even the word "Google" has become synonymous with "Search".

That being said, I did think it was smart to advertise it as a "Decision Engine" rather than a "Search Engine".

Icehearted:

questionnairebot:
"Quickly...Something isn't working...DO SOMETHING!"

"THROW MONEY AT IT! That should do the trick."

It's good to see the economy is failing horribly so many are left screwed...But bing is...something I guess.

A drop in the bucket for those that can afford to spend that kind of money on Bing. Job creators at work.... I guess.

I see what you did there. And I approve.

I prefer Google. Mainly because it actually works. I've given Bing a couple chances, but Google always has better results.

Aprilgold:

RandV80:
I'm not really anti-Microsoft but I think it's promising to see that they can't simply use their position as the leading OS in the world to force their way into a market and take it over.

Also the concept of switching from entering key words to 'natural language' or 'full sentences' into a search browser is horrible. Only the completely computer illiterate would be comfortable with that idea, but as most probably aren't the best typists either they'll probably find themselves happier sticking with key words.

How is it bad exactly. I hated on google getting a bunch of random ass porn while searching for some science website that my teacher liked to use because he was a giant ass prick.

My point, I'm young and I'd rather not have to do random key word searches, which don't always work and barely get to what your going for, its like throwing your hand into a lake, legend says theres gold in the lake, but you will actually catch are pirahhnas, mad that you interrupted their lunch.

I hope you realize that you come across as being completely computer illiterate with your post, which makes the exchange somewhat amusing.

Anyway, even if you are technologically inept, you can already use natural language and produce results.
Google will simply pick out keywords out of your sentence and use those.
It'll even compensate if you can't spell words.

NicoDK:
I wonder why microsoft feels the need to create their own version of everything
google - bing
php - asp.net
flash - silverlight
And i'm sure theres more i'm forgetting/unaware of.

Don't forget one of the biggest ones;
OpenGl - Direct3D
Now THERE was a place that they used their position as leading OS in the world to force their way into a market and take it over.

teqrevisited:
That'll teach them for those bloody adverts on every damned video I try to watch that's hosted on blip. Microsoft should stick to Operating Systems and consoles and try not to bugger them up.

Agreed.

Hopefully microsoft will soon start asking themselves "Maybe this Bing idea is not so good after all..."

The obvious answer: "NO FUCKING SHIT!" (Nostalgia critic Batman and Robin review)

It seems much more cluttered and visually noisy than google. Why do you think apple manages to do so well despite overpricing everything?

Rather fun to see Microsoft trying to squirm into a market like this, losing money at this rate...it just seems like poetic justice. On the flip side though, I do hope Google gets some legitimate competition on the simple side. Right now it seems like Bing is trying to be AskJeeves, which is awesome for people who don't know computers, but Google seems to have little competition to make them give less personalized search results, less sponsored stuff and less ads. They are bogging themselves down, and they are still the clean alternative.

Aprilgold:

How is it bad exactly. I hated on google getting a bunch of random ass porn while searching for some science website that my teacher liked to use because he was a giant ass prick.

http://www.youtube.com/watch?v=B8ofWFx525s
I'd assume you've searched for a good bit of porn on Google before that.

NicoDK:
I wonder why microsoft feels the need to create their own version of everything
google - bing
php - asp.net
flash - silverlight
And i'm sure theres more i'm forgetting/unaware of.

C++ - C#
Java - J#
iPod - Zune
iPad - Nokia phone
Mac - Windows

Bing ain't bad, but Google is already my homepage and Bing's interface is SLIGHTLY more cluttered than Google's. So I'm not changing. I like Windows well enough, but I don't want Microsoft to have dominance in everything. If Microsoft really put some effort into Bing, and make it stunningly better than Google, then sure, I'd probably move to Bing. But I'm not going to switch to Bing just because "it's almost as good as Google!". Being almost as good is not good enough. If Microsoft want me to use their search engine, they had better give me a damn good reason.

I personally don't like Bing, I still use google for everything, but as a fan of the Fonejacker guy, I think the ads featuring the art critic with the speech impediment were worth the $5 billion.

didn't convince me Bing was better, but did amuse me :)

Note: if it makes no sense outside the UK, our TV schedules are packed with people like Brian, on antiques shows and the like, desperately trying to get noticed by being 'quirky'.

the27thvoice:
Rather fun to see Microsoft trying to squirm into a market like this, losing money at this rate...it just seems like poetic justice. On the flip side though, I do hope Google gets some legitimate competition on the simple side. Right now it seems like Bing is trying to be AskJeeves, which is awesome for people who don't know computers, but Google seems to have little competition to make them give less personalized search results, less sponsored stuff and less ads. They are bogging themselves down, and they are still the clean alternative.

Well said. I will say that to be honest both search engines have their flaws but then all of them do, mostly the advertising before accuracy approach but I prefer Bing maps or rather the fact they have at least in the UK Ordnance Survey Maps which are quite simply the best and go into much more detail than Google maps.

I did have a go testing out the two to see who was best and the results were pretty similar but I use googlemail a lot so a search is never many clicks away where as I don't use Microsoft online much at all these days. They've gone a bit myspace...

I think people (including myself) are just so used to Google that they don't feel any need or desire to change search engines.

I never saw a reason for Bing, and still don't see one now.

As far as I can tell it offers no benefits.

Besides... Google is a verb in itself these days.

If you say "Google it" people understand what action they should take. If you say "Bing it", they'll reply with "what?" and "that's stupid".

Microsoft is dumb for trying to compete with every other company in the world.

Nintendo
Sony
Apple
Google

Four of the biggest companies in the world and Microsoft wants to monopolise the industry by getting rid of them all...no matter how much money MS has got they can't buy out businesses who make just as much themselves.

 Pages 1 2 3 4 NEXT

Reply to Thread

Posting on this forum is disabled.