Google vs. Microsoft-Yahoo vs. China: The Story in Charts

Today more than ever, the Web is a global game. Below are charts from a new State of the Internet report from comScore that paints a picture of global competition on the Web.

In 1996, two thirds of all people online (66 percent) lived in the U.S. By last October, that had completely flipped, with 77 percent of the online population living in the rest of the world and only 23 percent in the U.S. The U.S. still has the largest total number of Web surfers (162 million a month), but China is catching up fast (with 96 million):

In China, homegrown sites such as TenCent, Baidu and Sina all reach more native Web surfers than Microsoft (MSFT), Google (GOOG), or Yahoo (YHOO):

In fact, the leading Websites in many big markets such as Russia, Japan, and South Korea tend to be homegrown as well:

Social networks are the fastest-growing category of sites (nearly 60 percent annually), but they still lag in terms of penetration (less than 40 percent) behind photo sites, entertainment sites, search, and portals:

The fastest growing of all social networks, of course, has been Facebook, which jumped from the second pack to where it is now running neck-and-neck with MySpace:

Drilling down into search, Google still dominates with 62 percent share worldwide:

And it dominates search even more in other countries than it does in the U.S., where it only commands a 53 percent market share (compared to above 90 percent in parts of Europe and Latin America):

Looking at the efficiency of its search ads, Google puts up an ad against only about half of its searches, whereas Yahoo puts up an ad 75 percent of the time. Yet for those searches where an ad is shown, Google gets 0.24 paid click per search compared to 0.18 for Yahoo and 0.14 for Microsoft. (Search advertising on AOL and Ask are also powered by Google and they show the same or better clickthrough rates).

For display ads, Yahoo and MySpace control the most market share, with 19 and 15 percent each, respectively. (Microsoft comes in a distant third with 6.6 percent):

The report also gives an estimate of the unduplicated reach of Microsoft and Yahoo. A combined Microsoft-Yahoo would have 173 million unique visitors a month across the globe, a 10 percent share of all page views, 32 percent share of search, and 24 percent share of display ads:

Both Microsoft and Yahoo each have about 260 million Webmail users (with duplication), with Google’s Gmail bringing up third place with 87 million (no wonder Google execs keep bringing up market concentration concerns in relation to mail and instant messaging):

Comments

[JBravo]

The first chart is not only wrong (comscore numbers are next to meaningless outside north america), its also outdated. China leads the pack by now.
See news.zdnet.com/2110-10...

[User 142738]

The statistics on Internet users from Peking are just as reliable as the statistics on Tibet from Peking. You're substituting one piece of nonsense for another.

[John Capozzi]

What no one is telling you is the strenghts of Softbank, Allibba, Yahoo Japan, Yahoo USA and Microsoft. With the engineers of Microsoft and its software and Yahoo's and its products combined into one your looking at the future powerhouse of search and ADD revenue ever seen! Microsoft and Yahoo are at least talking now. The 40 dollar share bid is warranted. Reason for this as mentioned in your article is that Asia and India like to deal with their own culture of people. This is where Softbank and Allibba fit in. Jack Ma of Allibba set the platform in place back in DEC 2007 in India and Yahoo USA has made a quick move ito this area of the region by setting up a large research and development center. Softbank with its major stake in Yahoo Japan has been gaining major market share as shown in its last great qtr. Mr. Yang since he has came back in July has set out a plan to acheive must needed contacts with the Chinese and Japan Governments and it has been met favorably. What is too hard to notice here? Jack Ma of Allibba with his contacts with the Chinese Government and Softbanks contacts with the Japan Government you have two faily new companies moving strongly ahead with search and Add. As also stated here in your article you stated that China has a much bigger market in Search and Add revenue then all of the USA and Europe and the other countries combined leaving one out which is India and Jack Ma has already laid the stepping stone for Yahoo to set a foundation which it quickly did this week with a new Research and Development Center.
When Microsoft agrees to the 40 or more dollar new and final bid these 4 companies together will gain market share so quickly it would have the telecom sector knees banging together. Microsoft has the engineers, software and Yahoo has the engineers and products to make it work. Instead of Microsoft losing 700 million in Search and Add Revenue in their first year combined as one company will show a fair and most likely a major profit. The key now is to close this deal at 40 or above and start intergrating their great employees and products. The 40 dollar share price would be made back in what they paid in less then a year. The only thing that held up this merger was ego problems plus the massive crisis we are in the banking sector. This deal is a great one for all concerned and should be done asap or even after the bell today. Mr. Balmer pay the 40 and lets get to work now!!
Why do you see Google crying wolf anti trust and all other means of crap? They know as soon as Microsoft and Yahoo merge the game is over for them.
Then when these four companies combine watch them put in a bid for NT&T which is having major problems right now. When that is done and it will watch how much they gain on Nokia, Vodaphone, and Apple to be a maor player in the smart phone arena. CLOSE THE DEAL TODAY MR. BALMER AT 40 AND WATCH AS YOU CRUMBLE GOOGLE TO THE GROUND IN LESS THEN 3 YEARS.