Study: Yahoo's search slide continues, while Bing climbs

Yahoo's share of U.S. queries dropped to 17 percent in January, according to comScore

U.S. residents continue to shift their search engine use from Yahoo to Microsoft, a trend that started in mid-2009 after Microsoft introduced its new Bing engine and the companies signed a deal to partner in search.

Yahoo's share of U.S. search queries dropped to 17 percent in January, from 17.3 percent in December, while Microsoft's share jumped from 10.7 percent to 11.3 percent, comScore said Thursday.

Back in April, before the launch of Bing and the signing of the search deal, Yahoo had a 20.4 percent share of queries, while Microsoft's was 8.2 percent.

Google remains the dominant player with 65.4 percent of January queries, down 0.3 of a percentage point from December but up from a share of 64.2 percent in April.

Yahoo's search-share slide is bad news for the search advertising revenue of the company, whose deal with Microsoft hasn't been implemented because it hasn't received regulatory clearance yet.

Yahoo officials have said repeatedly that search advertising remains a very important revenue stream for the company. While it intends to outsource the back-end search functions to Microsoft, Yahoo will continue to innovate in its search sites' front-end interface features.

When they announced their search deal in July 2009, the companies stressed the need to combine forces both on the technology and the sales sides in order to present end-users and advertisers with a stronger search alternative to Google.

However, what appears to be happening in the interim before the deal gets implemented is that Bing is hurting Yahoo's search popularity, while Google continues coasting along at the top.

The 10-year search deal calls for Microsoft to not only power Yahoo's search properties but also be in charge of selling search ads. In exchange, Microsoft will share revenue for ads monetized on Yahoo search sites and on those of Yahoo's search network partners.

For example, during the first five years of the agreement, Microsoft will pay an 88 percent commission to Yahoo for search ads monetized on Yahoo sites.

Thus, it's key for Yahoo to retain, and ideally grow, search traffic on its sites, now and when the Microsoft deal kicks in.

Back in July, Yahoo estimated that, when fully implemented, the search deal would boost its annual operating income by about US$500 million, provide capital expenditure savings of about $200 million and increase annual operating cash flow by about $275 million.

It will be interesting to see if these estimates have to be adjusted down when the deal is implemented if Yahoo's search share continues to dip.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags Microsoftsearch enginesYahoobing

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Juan Carlos Perez

IDG News Service
Show Comments

Cool Tech

SanDisk MicroSDXC™ for Nintendo® Switch™

Learn more >

Breitling Superocean Heritage Chronographe 44

Learn more >

Toys for Boys

Family Friendly

Panasonic 4K UHD Blu-Ray Player and Full HD Recorder with Netflix - UBT1GL-K

Learn more >

Stocking Stuffer

Razer DeathAdder Expert Ergonomic Gaming Mouse

Learn more >

Christmas Gift Guide

Click for more ›

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?