Search engine industry is changing with more emphasis on local search and social media. Google showed the world the power of a good idea and honed it’s algorithms, now venture capitalists want a bite.
In 2007 Google Unveiled what is now known as Universal Search. It is the blend of different verticals into search results such as images, local, news and video.

Searches that specify local points(Toronto, Ottawa)now return results from Google Maps. Danny at Search engine land did a review of universal search on Google. Yahoo also took a step, but not as aggressively as Google.
Video Ads
Another step are video advertisements served as pay per click results. Google notified the industry they’re working towards developing a video adverting platform. The first break was in the summer of 2007 when Google tested with displaying video advertisement on top of it’s search results.
The more recent occurrence is by Yahoo. it displayed a video advertisement sponsored by Honda for keywords: “shop honda”. Read in depth here.
Video ads are still in their infancy, but search engine industry is moving towards monetizing the practice.
Microsoft vs Google
The biggest names steering search engine industry are Google and Microsoft. Though Gates does not have much search share, Microsoft is aggressively moving towards getting more. The biggest proof is the bid on Yahoo for 45 Billion.
MS also swallowed Aqantive, which serves graphical ads for total of $6 billion, while Google purchased DoubleClick for $3.1 billion. Microsoft also made purchases that relate to pay per click , search and analytics:
So far Microsoft focused on buying valuable advertising assets and technology leads, but it failed on the most important factor - algorithms. Google outpaces all players in search engine industry with some of the most sophisticated algorithms and ultra emphasis on user experience, while MS simply wants a big chunk of the pie and is willing to pay for it. not a Good strategy. We must also consider the bad name on Microsoft, as many look down on anything that comes out from the company.
Other Search Engines
Ask.com has around 4% share and continues to hold it. Dogpile, MetaCrawler and Lycos seem to exist by sharing 1% of search engine industry market, with Dogpile and Metacrawler feeding Wordtracker database - a key word research tool that search engine optimization industry relies on.
Other notable contender is Wikipedia, who launched socially maintained search - Wikia Search. So far the index is very dirty and does bad job on serving search results.
EU recently gave US$152 to develop a ultra search engine that will index video, audio, images and text.
Other smaller names such as Cha-Cha and Mahalo.com are human powered, using real people to conduct searches and edit the index. Though the idea seems bright, it hasn’t found much appeal, as people respect the efficiency of advanced algorithms.
The search engine industry is headed for tough battle with 3 Major players: Google, Yahoo and Microsoft. The question is whether there will be 3 or 2 as MS bids on Yahoo.
The biggest changes are:
Local Search and a new aggressive player - Microsoft.