Google Loses Market Share in July, Yahoo and MSN Gain

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Google Loses Market Share in July, Yahoo and MSN Gain

The monthly number of internet searches in July 2005 reached an astounding 4.8 billion, a 22% increase over the number of searches conducted in July 2004. To the delight of Google’s competition, Google lost a portion of its market share. ComScore Media Metrix reported that Google’s market share dropped to 36.5% while both MSN and Yahoo improved. MSN saw the largest increase in search frequency in having 744 million domestic searches, a 30% increase over July 2004. As a result MSN’s market share increased to 15.5%.

Yahoo ranked second with 30.5% of the market share. Yahoo Search also ranked as the most popular toolbar search choice, obtaining 51 percent of such searches. With a toolbar search option, a computer user can enter their search in a small window on their Web browser, regardless of what site they happen to be on, rather than having to go to a search Web site to run their query.

Google’s loss in market share generates a very important question to the average investor. Are Goolge’s shares and the newly announced IPO overvalued? Google announced on Thurday that it plans to sell up to 14.8 million shares in an attempt to raise more than $4 billion. The announcement sent the shares tumbling as investors are extremely wearing that the share value may be diluted as a result of the IPO. Google’s shares are trading at 79 times trailing earnings — comparable to other Internet stars like Yahoo, which trades at 72 times earnings and eBay which is valued at 57 times earnings.

The bottom line: Google’s shares may be volatile in the short term but they definitely have huge potential for remarkable gains in the long-term.

Carmen Jackson is the VP Client Relations of Ms. SEO Inc. a Calgary based Calgary Search Engine Optimization & Internet Marketing Canada

Loren Baker
Loren Baker is the Founder of SEJ, an Advisor at Alpha Brand Media and runs Foundation Digital, a digital marketing strategy & development agency.
Loren Baker
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  • Initially I was highly skeptical of MSN Search. Microsoft is not particularly known for bug-free products which are rammed down customers’ throats.

    However, to be fair, the quality of results I have seen on MSN Search are far better than Google, even though I am a die-hard Google fan. MSN Search seems to be less susceptible to SEO spamming (so far).

    Website Design & Development – Quadra Solutions

  • Innovation seems to drive this growth. Has anyone used the new Beta MSN Search Engine on Live . com yet?

    Good features, not too slow, but one major drawback… the results are pigeon-holed into a small window of 4-5 results and it becomes too cumbersome to look at any more results on the page by continuously clicking on the arrow keys. Worse, if you are looking for any particular website, you will have to suffer through looking at all search results till coming to what you want to see. Your browser’s search function is useless here.

    Take away this flaw and you will have a search engine that will give serious competition to all its rivals.

    Website Design & Development – Quadra Solutions