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Can Microsoft’s New Bing Video Search Challenge YouTube?

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Bing transforms video search with advanced features

Microsoft (MSFT) recently announced the launch of its new Bing video search, and it could cause some serious trouble for Google (GOOG) and YouTube.

The new video search tool has been redesigned for ease in accessibility, improved user experience, and above all, faster results. The new tool has a competitive edge over YouTube in the following ways:

  1. Large thumbnails get displayed on the results page, giving you an expanded search view compared to the small thumbnails displayed on YouTube.
  2. Music lovers no longer need to log out from Bing to seek out music videos on YouTube or any other website.
  3. Unlike Google and YouTube, Bing will highlight links that are related to your search request. Say, for example, you’re searching for a particular artist’s music video. The new tool will give you results for other tracks from the same artist as well as related results from other artists. So, you get more options.
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YouTube is the most popular site for videos

YouTube is still the most popular online video property. According to a report from eMarketer, and as the above chart shows, Google video sites—mainly YouTube—had 162 million unique visitors in the US in October 2014. In comparison, Facebook (FB), AOL (AOL), and Yahoo! video sites had much lower numbers of unique visitors.

Although Microsoft doesn’t find itself in the list of top players in this market, the new Bing search video feature gives Microsoft an opportunity to grow.

If you’re bullish about Google, you could invest in the Technology Select Sector SPDR Fund (XLK). XLK invests 3.8% of its holdings in Google.

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