Yahoo (YHOO) and Microsoft (MSFT) don’t have much time to get their acts together if they harbor any hope of preventing Google (GOOG) from completely running away with the internet search business. The latest figures from comScore shows Google’s share of core internet search rose 1.8 percent last month to 61.6 percent. Yahoo’s share fell 0.9 percent to 20.4 percent while Microsoft’s was down 0.3 percent to 9.1 percent.
Google’s share of core internet search is now more than double the combined share of Yahoo and Microsoft.
Core search includes partner searches and cross-channel searches. Searches for mapping, local directory, and user-generated video sites that are not on the core domain of the five major search engines are not included in the core search numbers. (Click chart to enlarge.)
On the expanded search front, Google continues to be buoyed by YouTube, where the total number of searches rose 5 percent in April, contributing to an overall increase of 2 percent at Google sites to 8.5 billion. Expanded searches at Yahoo sites were down 3 percent and at Microsoft by 5 percent.
Microsoft’s recently announced Live Search cashback could help lure shoppers away from Google with the promise of rebates on purchases, but is it a game changer or merely a finger in the dike? Analysts responded warmly to the announcement, according to eWeek.
IDC analysts Susan Feldman and Caroline Dangson said in a research note that Microsoft hopes to disrupt the existing search advertising value chain by giving money back to consumers.
[The service] may not immediately change behavior, but it gives Microsoft a large stable of e-commerce partners that will be watching results very closely. If it is successful, it will help push consumers to Live Search.
Michael Arrington at TechCrunch thinks it’s “a bold move that goes for Google’s throat, and it will likely have a material impact on their search market share.”
This new approach is both desperate and brilliant. Desperate because Microsoft is giving away most of the search revenue to get market share gains. Brilliant because they have such a small share of search revenue today that they have little to lose, and they are hitting Google hard in their core business.
Henry Blodget at Silicon Alley Insider is not convinced, noting that e-tailing behemoth Amazon.com is not (yet) a participant.
The product execution is strong and answers some of our questions/concerns . . . however, we still don’t think the new service will pose much of a threat to Google.
