Microsoft scored one big point against search rivals Google and Yahoo, after Verizon Wireless chose them to provide portal, local and Internet search, as well as mobile advertising services, to its customers. The announcement was made yesterday, and according to Microsoft, will take effect in the first half of 2009.

 

What we’re looking at is a five-year agreement between the two companies that will put Microsoft in charge of the search on Verizon’s Mobile Web service. Under the agreement, Microsoft will also boost its advertising business, by making it easier for advertisers to reach the consumers.

 

Why Microsoft? John Stratton, Verizon’s chief marketing officer, motivated their choice through their desire to make the emerging wireless experience accessible and easy for customers. Microsoft Live Search meets their objectives to deliver quality search services and the best advertising experience, Stratton said, adding that getting wireless search and advertising done right is critical for continuing to make wireless content relevant to customers and businesses.

 

With the help of Windows Live Search, Verizon customers will have access to content-relevant search results. In addition to that, they will also be able to use voice commands, typed queries or location-aware searches to obtain relevant results.

 

This will give them access to anything from maps, traffic information, or information on local businesses, to movie theatre news, gas prices and weather. All they will need to do is download an application or use Verizon Wireless’ Mobile Web service to get instant access to Microsoft Live Search.

 

None of the companies commented on the financial terms of the agreement, but Microsoft will undoubtedly benefit from this business just as much as Verizon.

 

Google and Yahoo have been left aside, after months of speculation on the partner Verizon will choose. The news isn’t exactly good for Google, but they’re even worse for Yahoo, a company that is struggling now more than ever.

 

Steve Ballmer said the deal will help customers get the most of their mobile computing experience and will help advertisers reach consumers who are on the go more efficiently. The announcement was made during the Consumer Electronics Show taking place in Las Vegas.

 

During his CES keynote, Ballmer pointed out that as over 1 billion mobile phones get sold each year, and in emerging markets, this is often the first computing experience for many people, mobile phones are becoming more capable than ever, and the market will grow even more within the next few years.

 

Ballmer pointed out that search on the phone for all Verizon Wireless customers will be similar, but somewhat different from searching on the PC. Furthermore, he added, search will become an even greater part of the overall mobile experience, which is why the partnership with Verizon is very important to them.