I am reading the latest news on the Microsoft bid for Yahoo. The New York Times reports that “Google emerged over the weekend with plans to play the role of spoiler.” But a spoiler for whom? In the cloudy world of paid search, a Microsoft/Yahoo union may provide more options for a market currently dominated by Google. Today, it is widely known that it is tough to duplicate Google’s paid search results on any other search engine. This gives Google the ability to quickly add new concepts into their algorithm such as the quality score introduced a few years ago. Google’s own site tells marketers that position is based on a variety of elements, including quality, bid rate and potentially hundreds of other factors.

A Microsoft/Yahoo alliance, if successful, would potentially lower costs for paid search because marketers would have a viable alternative to Google. The alliance could also generate new ideas for online advertising in general. With Microsoft’s ability to build software solutions and Yahoo’s strong number two spot in search marketing, the partnership could innovate around click relevance or create new solutions altogether.