Yahoo Gains Over Google in Online Search Share in July

By Dave Porter(AXcess News) Reno, NV – According to the latest report by comScore Networks, Yahoo! (Nasdaq: YHOO) edged out Google (Nasdaq: GOOG) slightly in July in share of online searches by engine.

In July 2006, Yahoo! sites posted modest market share gains for the second consecutive month to reach 28.8 percent of U.S. searches, trailing Google sites, which registered a 43.7 percent share.  Google’s share declined 1 percent from the previous month, ending its impressive 11-month run of consecutive gains.  Microsoft (Nasdaq: MSFT) sites held steady in third position with 12.8 percent share of searches, while Time-Warner (NYSE: TWX) (5.9 percent) and Ask, a division of InterActiveCorp (NASDAQ: IACI), (5.4 percent) each showed modest market share gains versus the previous month.

Google’s share of online search dipped to 43.7 percent from 44.7 percent a month ago.  Its shares fell over 2% on the news, while Piper Jaffray’s Internet analyst Safa Rashtchy, came out this afternoon with a report citing Google’s new Google Checkout as being adaptable by retailers but that its market adoption would be gradual.  Google also came out with a local coupon program that shows merit, but is too early-stage for Rashtchy to have yet predicted its value to the world’s No. 1 search engine.

Yahoo! gained in search in July as it continues work on its new advertising and search platform, having climbed to 28.8 percent of search in July from 28.5 percent the previous month, though Yahoo is still down 1.7 percent over the same period last year, when Yahoo controlled 30.5 percent of online search.

Investors yawned on Yahoo’s search gain in July with shares of the No. 2 search engine down 2.85%.

MSN struggled to compete with it too having recently announced major changes to its advertising platform, but those results weren’t reflected in Microsoft’s share of online search in July, which was literally unchanged at 12.8 percent over the previous month.  But for the year-over period, Microsoft was down 2.7 percent, the largest loss of the major search engine providers.

Microsoft’s shares were up .62% Monday, despite the disappointing search news.

Ask Network managed to muster a gain of .3 percent in online search in July, but was still down .7 percent over the same period last year.  Ask lost a key executive to Microsoft’s MSN group shortly after its face lift when it dropped the “Jeeves” butler and moved to simpler version of its pages.

IAC’s stock traded down 1.59%, despite its gain in online search market share last month.

TimeWarner’s gain in online search share in July, which is mostly due to its AOL unit, did little to enthuse investors Monday as well with its stock trading down .24%.

ComScore Network said Americans conducted 6.3 billion searches online in July, down 2 percent versus last month, reflecting seasonal declines typically seen in July.  Growth in search query volume on an annual basis remains strong, rising 30 percent since July 2005.

Google Sites led the pack with 2.7 billion search queries performed, followed by Yahoo Sites (1.8 billion), MSN-Microsoft (802 million), Time-Warner Network (366 million), and Ask Network (338 million).

Google and Yahoo! continued their dominance in toolbar searches, combining for more than 95 percent of the market share in July.   Google grabbed 50.3 percent of toolbar searches, while Yahoo! captured 46.2 percent.


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