Bloomberg News

Google Market Share Slips as Yahoo, Microsoft Make Gains

September 12, 2011

(Updates with previous months in second paragraph.)

Sept. 12 (Bloomberg) -- Google Inc.’s share of online searches in the U.S. slipped during August from July, while rivals Yahoo! Inc. and Microsoft Corp. gained, according to research firm ComScore Inc.

Google had 64.8 percent of U.S. searches last month, down from 65.1 percent in July, according to ComScore. It was the second-straight month of decline, following no change in June. Yahoo climbed to 16.3 percent, up from 16.1 percent, rising for a second month in a row. Microsoft, meanwhile, increased to 14.7 percent from 14.4 percent.

Yahoo and Microsoft teamed up last year in the search market, providing a bigger threat to Google’s dominance. Under the companies’ 10-year agreement, Microsoft handles Internet queries for Yahoo pages. Microsoft, which released a revamped search engine named Bing in 2009, also has rolled out a multimedia advertising campaign to attract users and is bolstering results by displaying data from Facebook Inc.

Google, based in Mountain View, California, continues to enhance its own features. In June, the company unveiled a feature called Instant Pages that gives users of its Chrome browser quicker connections from links on query results. The change is designed to cut 2 to 5 seconds from the process. Google got most of its $29.3 billion in revenue last year from search advertising.

Google’s shares rose $5.27 to $530.12 at 4 p.m. New York time on the Nasdaq Stock Market. Yahoo fell 22 cents $14.26, while Microsoft climbed 15 cents to $25.89.

--Editors: Nick Turner, Tom Giles

To contact the reporter on this story: Brian Womack in San Francisco at bwomack1@bloomberg.net

To contact the editor responsible for this story: Tom Giles at tgiles5@bloomberg.net


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