It’s Down to Two: Microsoft and Google

Great insight on implications of Microhoo! here from Jeff Rayport. Highlight:

The new online reality is that scale and features attract online users and the advertisers who want to reach them, and analytics—the tools that help sites target ads to users more effectively—build ad-pricing power and therefore margin. Scale is simply the traffic or number of unique visitors a site attracts. Features are the applications and services a particular Web site can deliver. In both cases, more is usually better. But analytics is an area that looks like art but is rapidly becoming science. It’s the way sites parse users’ profiles and click streams using behavioral targeting, predictive intelligence, and other database manipulations to boost ROI metrics for marketers spending advertising dollars online.

It’s Down to Two: Microsoft and Google

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