2010 03 10

Bing Bangs Out More Market Share at Yahoo's Expense

The search-engine wars are alive and well -- and Bing is the beneficiary again. Microsoft's so-called decision engine grabbed 11.5 percent of the U.S. search market in February, according to comScore. Although that's only a slight increase over January, when Bing boasted 11.3 percent of the search market, it's an incremental improvement Microsoft is glad to see for its less-than-a-year-old engine. But it's not all good news for Microsoft, if it cares anything about its newly approved partner's standings. Yahoo's bleeding led to Bing's gains. Yahoo's U.S. search market share dipped from 17 percent in January to 16.8 percent in February, comScore reported. Bad for Bing? Greg Sterling, principal analyst at Sterling Market Intelligence, parsed the data. He noted that Bing continues to grow its user base, although it seems to have slowed a bit. Meanwhile, Google is unaffected. "Those feeling the competitive pinch of Bing appear to be Microsoft partner Yahoo and the two smaller major search providers, Ask and AOL. The irony of Bing's success, partly at Yahoo's expense, is that Microsoft hasn't seen any growth in the combined share of Bing and Yahoo, which has remained largely flat," Sterling said. "The Yahoo search slide has now been going on roughly a year, and it has to be a matter of concern to the company. However, it's not immediately clear what they can do to arrest it." Jeffries & Co. analyst Youssef Squali also noted the shifting fortunes between Bing and Yahoo. In a research note dated March 10, Squali noted how Bing has added 350 basis points of growth since its June 2009 launch. Meanwhile, Yahoo has shed about 330 basis points since May 2009. "While the share losses have been exacerbated by the ongoing rollover of tool-bar partnerships (with HP and Adobe), we continue to believe that it is critical for Yahoo to...