Yahoo Chipping Away at Google's Market Share

This afternoon is turning out to be a rough one for Google. First, they reported less than expected earnings that sent the stock price dropping $40 as of this writing.

Then NetApplication's monthly newsletter shipped with news that Yahoo has nipped away at some of Google's market share:

Search Engine Market Share for June 2007

Aliso Viejo, CA based Net Applications announces June 2007 world wide Search Engine Market Share results. Yahoo, for the second consecutive month, has regained search engine market share at the direct expense of Google.
Yahoo climbed back to 12.16% market share, and the last time they had that much share was back in September of 2006. But, at that time Yahoo was on the decline in market share. Google's US search market share has dropped to 51.53%. Net Applications has not recorded two consecutive months of search engine market share losses for Google until now.

NetApplications takes things a bit far by speculating that Jerry Yang's recent return to CEO status has Steve Jobs-like rebound familiarity. I doubt any changes Yang's made during his short time in his new roll can be responsible for Yahoo's very recent success, but it's certainly a trend worth watching.

but keep in mind they are still up 58% in revenue over last year...that is impressive any way you look at it.

Comments

1. Posted by: opm trader on July 19, 2007 9:28 PM:

listening in on goog's conference call today revealed an important piece of evidence that supports the idea that goog is losing market share.

Schmidt stated that "paid clicks" were flat since Q1. later on in the call during the Q&A an analyst from prudential (i think) asked Schmidt why the clicks decreased. Schmidt deferred to a lesser exec who said it was "seasonal".

Well, this must be the first time this particular "season" has occurred becasue up til now goog has shown accelerating paid clicks every quarter.

goog's stellar growth is slowing. no two ways about it. it will be interesting to watch goog spin it otherwise.

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