For Yahoo-Bing, Baby Steps Are Key

Over a year ago, beginning on August 24, 2010, Yahoo! switched over to using Bing’s search results. Within the first week of the merger, the company Experian Hitwise, a leading global online competitive intelligence service, stated that the new Yahoo-Bing relationship had a combined 24.56% of the U.S. market share. At this time, Google was still maintaining a U.S. market share of almost 72%.

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Now, fast-forward one year to August 2011. According to Experian Hitwise, the Yahoo-Bing relationship has gained just over 4% of the U.S. market share. This pushes their total U.S. market share from 24.56% to 28.99% in just over one year’s time. In this same period of time, Google has seen their total U.S. market share decrease by over 6%. They went from having a U.S. market share of 71.59% in August 2010 to 65.09% in August 2011.

So what is causing this increase in market share by Yahoo-Bing? Although there’s no clear-cut answer, there seems to be a few contributing factors. The Yahoo-Bing return-on-investment for advertisers has increased by over 10% in the last year while the Google Adwords ROI fell by roughly 12% in the same time. Also, according to Experian Hitwise, “Yahoo! Search and Bing achieved the highest success rates in…2011.  This means that for both search engines, more than 81 percent of searches executed resulted in a visit to a Website.  Google achieved a success rate of 66 percent.”

For now, the Yahoo-Bing market share gains seem rather minimal, but they are at least heading in the right direction. Do you see this shift in market share continuing?

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