Microsoft and Google are two Internet mammoths. With direct competition over the domination of the World Wide Web describing most accurately the relations between the two companies, Microsoft and Google took steps in 2007 to ensure the continuing monetization of their respective search engines. Providing search services for free, both the Redmond and the Mountain View companies have built lucrative businesses around Live Search (and MSN Search) and Google.com. Still, this year's investments in the online advertising industry could potentially close the gap between Microsoft and Google.

The Redmond company is currently the underdog in the world of online advertising, in Google's shadow. But Microsoft is by no means a presence to be ignored. Still, according to Nielsen//NetRatings, in the U.S. the Mountain View company accounted for over 4.1 billion queries in July, translating in a search share of 53.3%. This while Microsoft's Live search and MSN processed a little over 1 billion searches with a share of 13.6%. Internet metrics company comScore painted a similar picture for July and also for the U.S., with Microsoft passing the 1.2 billion searches milestone for a share of 12.3% and Google still first, fueled by 5.5 billion queries and 55.2% market share.

And yes, it all comes down to advertising; in June 2007, 82% of the Total Internet Browser Population in the U.S., over 174 million users, clicked on an Atlas online advertisement, while 80% did the same on DoubleClick. Why are Atlas and DoubleClick relevant in the Microsoft vs. Google race? Because Microsoft just dropped a whooping $6 billion on aQuantive, and Atlas is aQuantive’s ad serving division. And Google is struggling to finalize the acquisition of DoubleClick for no less than $3 billion.

"This all links into our Software + Service strategy and in Microsoft Partner land (where I work) we are just starting to articulate our S+S message to our partners and how they can "get in on the action" when it comes to the opportunity we will create. Microsoft's strength over the years has been its Partner ecosystem and it's not something we'll forget how to leverage, but the game will change for Partners and it will be those who are best setup for change that will come out riding the wave," revealed James Senior, Microsoft UK Technical Specialist.