Is Google Losing Its Sway In The 'Search' Market?

by CXOtoday News Desk    Jan 09, 2015

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Google saw its share on t­­he US Internet search market is reducing slip to its lowest ever mark since 2009, while Yahoo notched its highest share in five years, according to an independent analytics firm StatCounter.

According to the research firm, in December, Google handled 75.2 percent of US online search referrals, down from 79.3 percent a year earlier. That score is its lowest since 2008, when started tracking the data.

Google nevertheless remains the US leader in the search market by a wide margin, ahead of Microsoft’s Bing at 12.5 percent and Yahoo at 10.4 percent. All other search engines combined to take 1.9 percent.

It’s been a big gain for Yahoo since 2009 which only had 7.4 percent of the search market a year before. In fact it demonstrates further that CEO Marissa Mayer has remained devoted to the search market, which Google had always dominated.

StatCounter said that Yahoo’s resurgence coincides with the beginning of its partnership with Mozilla, which made Yahoo the default service for online searches done through its Firefox web browser in the US from December. Firefox, which is open-source and free, is reportedly the third most used Web browser in the world, behind Google’s Chrome and Microsoft’s Internet Explorer.

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Experts believe Yahoo had been has been starved for fresh income due to declines in the prices of online display ads. But rise in search share have translated into revenue growth for the company as it now brings in more money from search than from banner ads.

Yahoo’s gain is good new for Microsoft, too. The two companies are part of a search alliance, and Yahoo is actually using Bing’s technology to power its search efforts. While some believe whether Google CEO Larry Page will lose his sleep over this dip, there is hardly anything to panic. As Forbes reacted to the news, “Sorry, but not only is Google’s CEO and cofounder unlikely to have nightmares over this, he won’t lose any sleep at all. That’s because the decline is–in short–small, mostly temporary, and largely meaningless in terms of how much advertisers will spend on Google’s incredibly lucrative search ads.”

Google remains the undisputed leader in ‘search’ controlling three fourth of the search market, although growth has slowed. It has been able to maintain its overall growth by expanding into other businesses, such as media with Google Play, the research shows.