Back in July 2014, Microsoft said that they are expecting Bing to be profitable, on a standalone basis, in FY16. During the FY15 Q3, Microsoft said that search advertising revenue increased 21%, primarily driven by growth in Bing, due to higher revenue per search and search volume. Despite the estimated impact of the Yahoo agreement Microsoft signed recently, Microsoft said that they remain confident in their goal of Bing profitability in FY16.
In an interview to MarketingLand, Rik van der Kooi, VP of Microsoft’s ad business has revealed that Bing is sustainable and standalone business. He emphasized the fact that Microsoft remains committed to Bing search business.
“We are deeply committed on the search side. We see it as a business that we’ve built out over the past six years as sustainable and standalone.”
“It’s a multibillion dollar business, and it does pay for itself right now,” he reconfirmed. “Our commitment to Bing is very deep and therefor critical for us to continue to monetize that business”
Recently, Microsoft announced that Bing will power search and search advertising across the AOL portfolio of sites. This 10-year agreement will enable AOL users to have access to world-class search powered by Bing across the company’s global portfolio of sites. Microsoft said that they will focus on their strengths: in this case, search and search advertising and building great content and consumer services.