Google Traffic Significant in Only Four Areas

Hitwise just ran some numbers on Google’s (GOOG) U.S. share of market for its various properties. Only four properties have significant market share of Google traffic, according to Hitwise, but it’s enough to generate a very profitable $16 plus billion in revenue. There are a lot of wide open spaces beyond search, and it’s apparent that a Microsoft-Yahoo (MSFT) (YHOO) union could cramp Google on the outside chance that Microsoft can effectively absorb and leverage Yahoo’s assets.

Comments

[sbenard]

I use Firefox browser, and have an add-on called NoScript that permits me to block not just pop-ups, but ALL advertising scripts, even ones placed on a web page from other sites. This could doom Google's ad revenue as more and more people use this free add-on. I no longer worry about all the ads because I've blocked them all!

[Tom B]

People simply aren't going to use something like Google Earth as frequently as they use Google Search, though Google Earth has essentially no competition. One should not arrive at the conclusion that this means Google Earth isn't successful.

They could do better (uasge-wise) than they do with Picasa and Blogger. They should contemplate buying Flickr from Yahoo, actually, because that would save Flickr from going to c**p under a potential communist-like MSFT centrally-controlled regime. Maybe Yang will look at this if MSFT acquisition appears inevitable at some future time point-- I would-- sell off assets as fast as possible-- poisoin the pond.

If I were Eric Schmidt, I'd spend this uncertain time shoring up under-performing properties and maybe doing some brand advertising in non-internet media. That is, if I expected Yahoo to disappear. The one thing Yahoo does well is branding; zillions of people use the Yahoo portal OUT OF HABIT. Google News is decent, and could unseat Yahoo easily if Yahoo is acquired. Google Finance is pretty, but, frankly, it's 3rd in utility behind Yahoo and AOL (!).

Alternative: GOOG could pick up Yahoo search and derail the whole MSFT attack on Yahoo. That would be a FANTASTIC outcome for Yahoo, Google, AND MSFT shareholders; everybody would win.


Google is doing GREAT work with online business apps (word processing/ spreadsheet) and, more recently, with document sharing and collaboration. ONCE THESE TOOLS MATURE, businesses could save billions by axing expensive MS-Office licenses and most of their in-house IT departments. But that's on a decade time frame; it won't happen this year or next. Google should seek to keep improving on the more mature things it owns and should not let itself get distracted. Netscape made that error.

[STUKA]

"They should contemplate buying Flickr from Yahoo, actually, because that would save Flickr from going to c**p under a potential communist-like MSFT centrally-controlled regime. "

Wow!! Obviously Mr. Barta has some strong emotional issues that cloud his thinking. MSFT is centrally controleed whereas Goog is not? Have you spoken to advertisers who have had to deal with Big G?

[mkreisel]

If you had worked in those organizations, you would have a better idea about Mr Barta's comments.

Microsoft is not far away from the Dilbertesque organizational nightmare. It's not there yet, but pointed-haired bosses are clearly on the advance.

[Tom B]

"but pointed-haired bosses are clearly on the advance"

Except for the bald guy in charge.