Experian Hitwise sent out the monthly data on US search market shares for the month of March 2010. The Microsoft Corporation (NASDAQ: MSFT) and Yahoo! Inc. (NASDAQ: YHOO) combined gains were marginal, although the Bing portion was down 1% to 9.62% in March versus 9.7% in February. The big issue is that Google Inc. (NASDAQ: GOOG) lost share. For the first time since June 2008, Google registered under the 70.00% of search share in the US per the Hitwise data. This may seem more like a technicality than a real solid trend, but it will be interesting to see if this can continue in the coming months. The impressive number is over at Ask.com, the old AskJeeves.com, from IAC/InteractiveCorp. (NASDAQ: IACI), but this is still so far behind in the #4 position that the Google data may stand out more for now.
The drop at Google was from 70.95% in February, and that fell by 1% on a relative basis to 69.97% share of search. The graph below from Experian Hitwise should illustrate this at least some on a relative basis.
The gains between Yahoo! and Bing from Microsoft are still coming back, but the Bing drop is worth noting. Microsoft wants that share, and Yahoo! wants more share even if its policy is over value of content and being a destination rather than just a search player. The reason we are covering these together is because of the recent Microsoft-Yahoo! deal.
As far as Ask.com, this has been referred to as the virtual glue that holds all of Barry Diller’s virtual properties together. The share here went from 2.84% in February to 3.44% in March, a gain on an almost unheard of 21% on a relative basis.
Does Google need to freak out or run around crazy because it has dipped under 70% share of search? Of course not. Admittedly, this may even be making a mountain out of a mole-hill. Google has gone off in many directions… maps, directional GPS, YouTube, mobile ads, Android, smartphones, software, contests, China-war, solar, grants, and on and on.
At the end of the day, Google’s bread and butter is search. The company probably doesn’t have to worry about the 70% threshold reverting considering that it is is still so far ahead. Not yet. If its share of search continues to dribble down, that is a different issue.
JON C. OGG
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