July 11, 2007

Could Microsoft Knock Off Yahoo To Become Google’s Biggest Competitor?

Duncan Riley

71 comments »

As much as I would have thought such a post title would have been absurd a week ago, it could happen. According to the latest search market share figures released by Compete, MSN/ Live increased its market share by 67% from May to June 2007, putting Microsoft’s share of search at 13.2% behind Yahoo at 19.6% and Google on 62.7%. Over the year, Microsoft’s search traffic is up 47%.

Despite a $100 million Crispin, Porter + Bogusky advertising campaign, Ask saw its share of the search market decrease from 3.5% to 3.3%, although to be fair to Ask, Compete recorded a 2.6% rise in traffic.

compete.png

Is this a sign that Microsoft could actually overtake Yahoo to become Google’s largest competitor, or a statistical blip?

comscoremay.png comScore’s figures would seem to support the idea. According to comScore’s May 2007 figures, Yahoo Search has a market reach (as opposed to share) of 31.2% to MSN/ Live search with 25.4%. The unique visitor numbers were 240million to 196million, a gap that could certainly be narrowed and even overcome.

Microsoft has the advantage of having their search properties open as the default homepage on IE7, and with Vista shipping over this time frame it could be a case that some consumers are simply using the default search page or search box they are presented with on a new box or upgraded system.

No matter what the reason, credit where it is due to Microsoft: it looks like their search strategy may finally be starting to deliver.

  • Sphere It

Comments

Microsoft could be making some gains. What I find interesting is whenever I look at my Analytics, Microsoft shows up only a little and Yahoo almost never shows up. If combined they are over 30% of search, why does almost all traffic seem to come from Google? I have seen this question asked before, but it comes to mind everytime I see these monthly search statistics.

Good post though. As much as people on this site seem to hate Microsoft, they can’t be ruled out. Although Google is obviously hotter and more innovative right now, the amount of cash Microsoft can continually throw at a problem has to at some point make some gains.

 

@ Brian: It’s something I see too and wonder about. My suspicion is that Google have developed a very elegant way of adding blog-type date stamped posts to their SERPS. I can only think that instead of relying on spiders, they are using blog feeds to retrieve the data – this means that on google your hot post begins ranking almost immediately whereas on the others it can take a couple of weeks at which time the topic is likely to be stale, hence far less traffic.
I be interested to see if anyone agrees/disagrees with this…

 

Can we take a quick poll of TechCrunch readers:

Does anyone use the MSN/Live search engine as their default “go to” engine?

 

M$ haz z resources, audience and $ so yes!

 

Of course they could do it the EZ way and buy the little shit.

 

Duncan, I did a similar look yesterday, drilling a bit deeper into the history of using giveaways, which is what might be helping Microsoft. Also charts the Compete figures month by month over the past year:
http://searchengineland.com/070710-105603.php

 

Microsoft is in a fortunate position because of its gargantuan resources, but at the same time MSN wouldn’t be closing on Yahoo if users found it ineffective.

It’s a good point about the default homepage on IE7 though. Sometimes it’s easier to go with what’s in front of you rather than root around for something else.

 

There’s not much rooting around though, people are aware and know where google is. If they wanted to use it from their IE7/Vista, they very well can easily - plus with all the adjustments that have been and will be made down the road to the software to make it more “fair to competition”.

 
techcrunchcommenter - July 11th, 2007 at 6:17 am PDT

@Vin Turk:
Yes, I started giving Live a try as my default search engine and must admit I am pretty impressed with the experience — they have certainly closed the big gap with Google/Yahoo. Not only has the load times gotten better, but I see the relevancy has had a huge upswing as well. But that could just be for the queries I do…:)

I am sticking with Live for now!

 

Replying to Vin Tech’s post above, I reckon that people who read tech crunch are probably more techie than most and know how to change the default search engine. Lots of people won’t do this

I saw Ask advertising its search service on Google the other day - slightly ironic I thought!

 

Yeah, I use Live.com as my first search engine. I really like the features and the image search works great. If I can’t find it on Live, then I use Yahoo and lastly Google.

 

Are these figures worldwide or US only? In the UK MSN/Live search has a… 5% share according to Comscore. A long way to go to catch Googles 80%!!

 

“World trade means competition from anywhere; advancing technology encourages cross-industry competition. Consequently, strategic planning must consider who our future competitors will be, not only who is here today. “

 

According to Compete, the MSFT search spike is at least partly due to a big competition/promotion they’re running. You have to use Live search to play, winners redeem points for prizes, etc. So it seems like this could be a temporary situation that will end when the promotion ends or when people get tired of the contest that MSFT is running.

Sort of strange to run a story called “Could Microsoft Knock Off Yahoo To Become Google’s Biggest Competitor?” and not mention that most of the growth is due to this promotion.

As Compete wrote: “If Microsoft can actually leverage this traffic to club.live.com into actual search users and string together a few more months like this, they could really threaten Google’s top spot.”

If that happens, *then* this’ll be story.

 

Yahoo has lost their way. They no longer focus on search and therefore are losing their market share. I’ve been using Sitemap and pinging them to Yahoo nightly but Yahoo could care less. They say they support sitemaps, but they really don’t.

Yahoo is about as relevant as Ask.com, which is not at all.

 

13 and 19 percent? Wow, competition with google really is a relative term, huh?

 

Looking at our logs (about 12K Uniques a day mon-fri) i see ~23% of my traffic from Google, about 8% from Yahoo, and 3% from MSN. However the MSN share has been growing quickly.

Make sure you throw both the MSN and Window’s Live searches in the same MS bucket.

Overall that means that 55% of my Search traffic is from Google, 20% from Yahoo and about 7% from MSN.

 

Microsoft has been the predominant leader on the desktops for a couple of decades by now and Yahoo is still the number one traffic fetching web site in the world, so a competition is definitely welcome, but I still wonder Why would any one you yahoo or even MSN to search the web???

Google rules that so, if you want to earn money come up with some thing the rest of the world has not seen before or, please stop wasting your money on the expensive Ad campaigns coz they only fetch you an immediate attention but fades eventually.

P.S- How many of you guys have seen Google Ads on TV or even any where else???????

 

It will probably take 5-10 years before MSN - dominates Yahoo … depending on yahoo putting up a fight or not …

- in that case 10 years; is worth whatever MS could pay to own Yahoo … and be a instant competitor with Google.

- after they buy them; they should keep them private until they can find the perfect way to integrate… the search (the actual names, and styles should be kept private for the longest time)

 

The question whether these figures represent the worldwide pic or just the US one is really necessary.

 

MSN’s search engine is a joke. I have tried for the past year to get my site on there, and even talked to someone on the webmasterworld forums that works for them. He told me that it looked like my site has computer generated postings. I’ve submitted it over and over again on their submit form, and that did nothing. Meanwhile I have very good results on yahoo and google.

 

Yahoo sucks.

MSN sucks.

Doesn’t matter much to me who wins.

 

Google does not and will not for the foreseeable future have a competitior in general search.

The playing field as I see it is in Maps/Local/Mobile and MS has a chance there. Yahoo has none.

Yahoo’s only hope is to harness all their social apps e.g. delicious, flickr, pipes, mail, etc can create something very compelling, but as another comment mentioned, they are not a search company. Their ad future is in display.

 

I think the most important and surprising news is that Ask.com actually LOST market share after their big ad campaign. This has effects on the future of search engines, showing that TV ads do not work and aren’t worth it. Thoughts on the seeming failure of their ad campaign?

 

ORLY! As Richard said, put this in perspective…And backing Tim, second place is still the first loser.

 

I don’t think MSN will overtake Yahoo anytime soon, but I guess it doesn’t matter unless you’re actually number 1.

 

Have you actually tried Live search? For any search term outside the top 500 it’s really pitiful… I hope they can improve because the industry needs more competition. At least they aren’t out there like Yahoo is with accidental quotes that search is dead…

 

Right now how Yahoo is running things it’s a big possibility. Yahoo has been on this ad kick recently. They could start putting skyscraper flash ads to try to increase revenue in search. It may be obvious to some but Yahoo lately seems not to think out the effects of their actions. It might just make people not want to use their services. Shocking I know.

 

Could the stats be skewed with Microsoft running that game to promote the search engine?

 

Yeap. yahoo lost search engine marketshares.

Due to cybersquatting. :) They weren’t suppose own domain name and put spam yahoo frontpage.

 

i hardly get any traffic from msn. 90% google 5% yahoo and ream 5% all put together

 
Why Yahoo lost marketshares? - July 11th, 2007 at 9:47 am PDT

Broadcast.com couldn’t compete Youtube

Any founders who buy boardcast.com and make IPTV or video websites or video sharing site.

Stock or IPO will be worthless. You can ask investors or VCs. No one is buying it.

 

microsoft can take a decade to build market share

they can fund a new search team every year for the next decade

they can acquire content and traffic like crazy

this is why they are a threat to yahoo - they have time and revenue on their side

when i heard they were funding more search development, at first i thought it was crazy, but then when you are making $40 million a day in profit, why not?

 

Wonder if Windows Desktop Search helps pad these numbers a bit. I know for my work laptop, it’s the only decent enterprise search app I can “legally” use. It has a web search function and although I go to a browser to search outside of my own PC, I’m sure many others don’t.

 

@Jonathan Mendez:

“The playing field as I see it is in Maps/Local/Mobile and MS has a chance there. Yahoo has none.”

I’m not sure about maps and local, but you are arguable wrong on mobile. If you have followed the mobile web, Yahoo according to some estimates has a lead so far (M:Metrics, Telephia) along with Google in some areas. MS has none.

Have you tried Yahoo’s mobile search? It’s actually pretty useful and well designed.

 

Yahoo - content
Google - search
MS - everything else besides content and search

 

@Jonathan Mendez: Uh, okay, you’re an idiot. Have you not heard of Yahoo! Go, which is currently leading the mobile search market? Also, so long as we’re in the business of making factually true statements, surely you also know that Yahoo! Maps is also ahead of Google Maps is every measurable metric as well. Do people actually look at any of the statistics before running their mouth in the comments forum? Apparently not.

Remember one thing - Yahoo! is the most visited website, and has the world’s largest userbase, and also has a product in Messenger that retains eyeballs over a very long period of time. Sooner or later, they’ll figure it out. They have way too many positive market forces to continue to have problems capitalizing. If they have top 3 market position in 21 properties and the #1 most visited website in their lean years, imagine the possibilities of when they actually figure it out.

 

@Vin - Absolutely not. Do not use MSN as “go to search”. Right now it is Google (reluctantly, their service has taken a dive into the toilet).

 

@Vin - Sorry, thought you meant from an advertisers perspective. From an advertisers perspective we do not use MSN AdCenter as our go to search advertising platform. For just regular web searching on my personal time, yeah, Google.

 

Uhh…did you hear of Yahoo! Go because of the f’n billboards on 101? The thing with mobile search is that it’ll never take off - the technology is great, but we’re already seeing handsets (iPhone) with full browsers and Wi-Fi caps. Why would I go to specific mobile page when I can just launch Google from my phone in classic web form?

I really want to like Yahoo! but it’s really hard to. Probably the only thing they’ve done right is Fantasy.

 

I have visit MSN/Live, and I have foud some good tools.

I think if they implement new tools for Webmasters & marketer, thier Web search Market Share will grow more in a short time.

 

Who cares what people use here. It’s not we use, it’s what the comman man uses.

 

Exactly and the common man doesn´t care about whether they search on MSN, Google or Yahoo in the long term. As long as they have the search entry form right in front of them and the answers aren´t that bad they will use it. That´s why Microsoft will make further inroads. It´s that simple combined with the long breath of the Redmond guys….

 

I prefer msn or yahoo I can’t stand the way Google adds are everywhere. There are very annoying.

 

To answer the Vin Turk poll, MSN/Live is not my go to search engine.

Other comment, I wonder how much of MSN/Live traffic jump is due to behavior of the MSN home page? Until that thing fully loads, anything I attempt to type into my Google toolbar instead gets populated into the search tool on the MSN page and then hitting enter runs the search via MSN instead of Google. I wonder how many others experience similar behavior and just ignore the fact that it was MSN instead of Google search results? Also, when upgrading to IE&, it dropped my google toolbar and put it’s own, very similar looking toolbar up and of course defaulted to msn search.

 

Ah! The common people…’there are very annoying’. Wager, tell us, what do you use?

 

I think that we have not seen Yahoo’s last word yet.

 

I don’t see how that could be. Nobody that I know uses MSN. Might it be that the numbers are inflated b/c many internet browsers are set to default with MSN as the homepage?

But bad news for Yahoo! I went to Google to look up news on Yahoo!

Check out this poll on whether MSFT has a chance against Google or Yahoo that someone put up.
http://sodahead.com/poll/7737/

 

I think mobile specific sites will still be around a while. The iphone does do full pages well, but they take a long ass time to load over edge. Why bother with that when you can get a smaller page if you are just looking up a resteraunt? I know cause I have one of these stupid things and it isn’t practical to browse on edge if you are in a rush.

 

Search volume and results in Google is very high. Searchers feel hard to get information on Google. So they move to other search engines t find information required .

 

The increase in Microsoft Live searches is probably directly caused by the adoption of IE7 as it is the default search embedded in that browser. No one sets Yahoo as their default embedded browser search.

 

Even if the US are the biggest market, there are more out there. In Germany for example the dominance of Google is even stronger and Yahoo is on the third place since years.

 

Personally, I think it’s more of a statistical blip than anything else; they certainly have some advantages when it comes to the fact that they have the default home page on PCs, but that advantage could change if they don’t do something in the mobile market to get their search onto more handheld devices.

 

I find all this chatter amusing. The search wars are over: Google won. Whoever is #2 or #3 or #4 in search, unless it’s some new startup where it’s all growth — it just doesn’t matter.

But the trap here is thinking of these companies just in terms of search, they are much more. While I don’t know what exactly to make of Nielsen/NetRatings new measurements where they are ranking sites by “total level of engagement” based on minutes of usage - there is definitely some interesting stuff to infer from that besides the ranking making AOL once again the king of the Internet. By this ranking even Yahoo is ahead of Google.

Reading between the lines of minutes, page views, etc, it’s very clear Google is kicking everyone’s ass in search, but it’s also clear tons of people are using Yahoo mail, MyYahoo, Yahoo sports, etc., and there is certainly a lot of value in that (for Yahoo) which mostly goes missed by the “search only” comparisons. On a level of engagement basis and a unique visitors basis, Yahoo is far from dead and way ahead of MSFT.

Yahoo users spent almost twice as many minutes on Yahoo properties as MSN/Windows Live users spent. Anyway you look at it twice as many minutes is way better in a Yahoo vs. MSFT comparison but I’m not sure that’s true on an EA Online vs. MSN/Windows live comparison.

You can see the top 10 data and some search data for May based on the new ranking @ netratings.com

 

Am I the only one that notices Google’s usefulness as a search engine declines in direct, if not algebraic proportion, to their advertising sales? I entered “Appliance Parts Alameda San Jose” and Google didn’t even return “Appliance Parts” on the Alameda in San Jose in the first page of results. Google Books or Google Scholar are even more Ridiculous.

Michael Mellin
Publisher Emeritus
Random House Dictionaries

 

Interesting, but I doubt Microsoft will make it too much further as a useful search engine

 

I use Live almost exclusively now. I’m happy with the results and I like the portal page for viewing feeds, news, stocks, and other gadgets. It’s my go to place, and I like the map and image search much better than google products.

I’m still a gmail user and I use google maps on my mobile.

– Alex

 

these companies are too much up there ying YANG to see anything. google results are 3rd. third world. if they had a grip they would have produced something that can compete with the mylocator.com 1200+ vertical location based network. These crony sites are mumbo jumbo adsense cpc lost in space puppy mills. my message is put some thing out there or shut the )(*^*&&*(^%……up. Lack of vision and leadership (vision) will be the demise of these so-called search behemoths. My advice is get hungry or get off the pot.

 

Remove all the ads from Msn.com and I’ll use it then. Too many things jump, run, shine on the page. Simplicity, Microsoft, s-i-m-p-l-i-c-i-t-y. No graphic ads (I’ll ok the text ones) should be the main goal for you, Microsoft.

 

@ Daniel Rueda

There are two reasons I love techcrunch comments.

The first reason is that I get some great insight from people who have something valuable and interesting to contribute.

The second reason is to laugh out loud at space cadets like yourself who just blast away from left field with some some hyperbolic rantings as if anyone would give a fats rats ass about what you think.

I cant wait till Techcrunch gets some form of comment rating system so we dont have to sift through 50 posts of crud to get to the gold.

 

Windows Live Search is improving dramatically, and Yahoo hasn’t done much. Add that to the fact that Yahoo’s bound to be bought by someone sooner or later, and you realize that it’s no longer the huge Internet name.

http://www.nerdcouncil.com

 

Good post. Microsoft is doing well, although it seems that the competition will be only with Yahoo. Google is far from having a worthy competitor.

 

there are many person used to use “baidu”as the best search engine in China.
sometimes i use google.
never use msn or yahoo.
I HATE yahoo in CHINA

 

#37 so awesome!
i like this guy!

 

Don’t think Vista has anythign to do with this. Most Vista OS have been shipped with new units and all new PCs have a search relationship and in all but Lenovo’s case, the search default is NOT microsoft.

The only thing that comes to mind is microsoft could have done an update to old IE6 browsers and change them to IE7 with Live default but that is unlikely as well. So surprising that these numbers are reported. Wonder what Comscore reports show

 

I have been using the default search engine on Vista (MSN Live) for the last few months and I’m pretty happy with the search results. The relevancy is about the same as Google. The only drawback is that the quality of sponsored links doesn’t quite matchup with Google, though there’s been some improvement recently.
My take is that MSN Live search seems to be headed in theright direction.

 

I used to think Yahoo would be the only player that could give Google a run for their money in the search field. Yahoo still has some excellent properties in non-search areas which I use everyday (I mostly use Google for search, but still spend more time on Yahoo properties than Google properties when it comes to news, email, etc.) And their search quality itself is actually on par with Google’s IMO. But they just haven’t been able to convert that success in other areas to dominance in search. You’ll always see childish knocks on comment threads like this , but Yahoo still has a lot of well-earned respect. But in the search space, it generally seems to get looked at as plan B.

Honestly, I don’t think anyone’s going to mount a serious challenge to Google in the search sphere anytime soon. Maybe some startup that suddenly gains Facebook-like worship and adoration among college kids and the tech community could get enough buzz to see some significant marketshare growth. But of the existing powers I’m increasingly coming to the realization that Microsoft is probably the only one that could actually challenge (not beat, just give noteworthy competition) to Google when it comes to search. Live.com actually has some very solid search results and product offerings. And if Microsoft can bundle more integration with their OS and some of their major apps/platforms into the ‘cloud’ (such as Office, Xbox, Media Center, etc) they could have a pretty compelling product.

 

MS is up in the search because it is the default search in IE 7 - NO OTHER REASON!

MS is at it again with anti-competitive behavior, leveraging their dominance with Windows. They shouldn’t be allowed to do this.

 

Microsoft is a distant third in our logs, or fourth, if you count Google Images separately from Google.

 

Here is a blog that is giving away a free genuine windows vista key

http://en.pablogeo.com/win-a-g.....vista-key/

 

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