Google Increases Search Dominance
MSN continued to fall farther behind its rivals in terms of search query market share, according to data released Tuesday by research firm ComScore. Microsoft's chief competitor Google increased its lead, grabbing a little over 42 percent of the search market in February.
MSN made it a publicly stated goal last year to increase market share on rivals Yahoo and Google, even unveiling a new version of its search portal that mimicked Google's simplicity. While the company pointed to the increased relevancy of its search results, so far users have not responded.
Search queries performed on MSN have fallen from 16.3 percent in February 2005 to 13.5 percent last month. Similarly, Yahoo has seen a drop from 31.1 percent to 27.6 percent in the same period. Analysts say that Google's gains are not over either; its competitors are still struggling to keep pace.
As they do, the Mountain View, Calif., based company would be able to use its already established strengths and further innovation to lure more users away from its competitors. One analyst even suggested Google could capture as much as 70 percent of the search market.
"The question really comes down to how long it could take," RBC Capital Markets analyst Jordan Rohan wrote in a research note to clients.
Microsoft, however, continues to ramp up its online efforts. The company recently debuted a beta version of its new Live.com search that will eventually replace the MSN portal with Windows Live. And the launch of Windows Vista and IE7 later this year will further help the Redmond company compete against Google.
"Microsoft is making a business and technology transition that could affect search in the short term. The company has placed its bets on long-term gains," Jupiter Research senior analyst Joe Wilcox commented to BetaNews. "Strangely, Microsoft seems to deliver best when the pressure is greatest. So, Google gains might actually benefit Microsoft over the long haul."
Only one search engine was able to increase market share year-over-year. That was Ask.com, the former Ask Jeeves, which rose to a 6 percent share from 5.3 percent a year earlier.