Poor People Use Yahoo, Better Off Use Google

Includes: AABA, GOOG, MSFT
by: Duncan Riley

New data released by Hitwise yesterday shows that the difference between those using Yahoo and Google can be shown by the wealth of each user.

The graph right demonstrates “Online Representation” based on demographic types. The Y axis represents Yahoo, the X axis Google, with the higher the number, the more that particular group of users uses each service. Yahoo is strong in “struggling societies,” “blue collar backbone,” and “remote America,” whereas Google obtains higher use in “small town contentment,” “affluent suburbia,” and “upscale America.” The size of each circle represents how many in each group have spent $500+ online.

The differences between the groups aren’t great, but the results do go some way in explaining the Yahoo conundrum. Although a distance second in search, Yahoo has remained the number one traffic destination online ahead of Google, so you’d think with more traffic Yahoo would convert that traffic into similar returns to Google. But alas we know that not to be the case, and that would appear in part to be related to people using Yahoo not spending as much online and being in poorer demographic categories than Google users, providing a lower return per user.

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