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Google increases search market share lead as Yahoo falls

Microsoft's Bing stalls
Tue Oct 11 2011, 10:51

ONLINE ADVERTISING BROKER Google has managed to grow its search market share yet again, with Microsoft and Yahoo faltering.

Industry watcher Comscore reported that Google's share of the US search market increased by 0.5 per cent to 65.3 per cent in September, with Yahoo being the victim, which still managed to cling onto second place ahead of Microsoft's Bing. While Bing retained its 14.7 per cent market share, Yahoo fell 0.8 per cent to 15.5 per cent.

For Google's rivals, Comscore's figures are a slap in the face after Microsoft and Yahoo joined forces, with Bing powering Yahoo's search results. However for Google, which makes most of its cash from advertising, things are looking a little tougher, with Bloomberg reporting that advertising sales growth was lower than previous quarters.

Yahoo's drop in market share is just one of the problems facing the firm. After sacking its CEO, Yahoo has been dogged by takeover rumours, with co-founder Jerry Yang being mentioned as a possible buyer with the help of private equity firms.

However Microsoft is perhaps the most disappointed of all. Unlike Yahoo, it still has big aspirations in the internet search engine market and promotes Bing heavily. Yet for all the marketing through Internet Explorer and its Windows Phone devices, Bing's market share remains stagnant and, when Yahoo is also taken into account, falling.

Yesterday Google's shares rose by over $22 to $537.17. Putting that into perspective, Microsoft's share price is $26.94. Google will report its third quarter financial results later this week, and the market seems to believe it will be good news. µ


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