Microsoft Bing grabbed 11.5 percent of the U.S. search market in February, up from 11.3 percent in January, according to comScore. While Google grew slightly to 65.5 percent, Yahoo dropped from 17 percent through January to 16.8 percent in February. Microsoft may one day be able to attribute other actions if Bing continues to grow. The company is waging a so-called proxy war against Google, urging companies that seek its advice about how to compete with Google to take their complaints to the DOJ and EC.
Microsoft Bing continued to gain market share, growing to 11.5 percent of
the U.S. search
market in February, up
from 11.3 percent in January.
Bing's gains came from Yahoo, which dropped from 17 percent through January
to 16.8 percent in February, according to research from comScore released March
9. Google grew slightly in February, notching 65.5 percent, up from 65.4
percent from the prior month.
The big story here is the rise of Bing and the corresponding plunge of
Yahoo. Since its June 2009 launch, Bing has tacked on 350 basis points of
growth, while Yahoo has lost roughly 330 basis points since May 2009, according
to Jefferies & Co. analyst Youssef Squali.
"While the share losses have been exacerbated by the ongoing roll-over
of tool bar partnerships (with HP and Adobe), we continue to believe that it is
critical for Yahoo to stabilize its market share in 2010 to remain relevant in
the search market," Squali wrote in a March 10 research note.
It is unlikely that Yahoo will recover to post any significant growth, given
the commencement of its
search deal to let Bing power its search results for
the next decade.
The Justice Department and European Union
blessed that deal one month ago, and the partners have begun the
integration in earnest.
While Yahoo's search is greater than Bing's, it is clear Bing will be
propping up Yahoo's search going forward. The combined companies' market share,
which is now 28.3 percent to Google's 65.5 percent, will largely be viewed as
owned by Microsoft. This sort of success is bound to produce more success,
Squali argued.
"[Microsoft's] 350 [basis points] gain in search share post its launch
is an indicator of sustainable traction. With Yahoo's traffic added to its own
in late [second half of 2010], Bing should become a viable competitor to
Google, with 28 percent market share-a duopoly most advertisers welcome."
Reasons for Bing's continued growth vary. Squali sees the $100 million
advertising and marketing campaign as a big reason, along with the Bing
Cashback program, unique user interface and focus on industry verticals, such
as travel and shopping.
FBR Capital Markets, meanwhile, said much
of Microsoft's share gains can be attributed to the addition of trending search
queries on MSN and the company's aggressive
ad campaign for Bing. The continuation of this campaign could translate well
overseas.
"With Bing
launching its ad campaign in some foreign markets, we would
expect to see similar results in the international share figures in the coming
months," FBR analysts noted in a March
10 research note.
Microsoft may one day be able to attribute other actions if Bing continues
to grow. The company is waging a so-called proxy war against Google, urging
companies that seek its advice about how to compete with Google to take their
complaints to the Department of Justice and European Commission.
Indeed, Microsoft CEO Steve Ballmer
recently said that Microsoft had been "expressing" its
frustrations over Google with antitrust officials after a Microsoft attorney
admitted Microsoft tried to
convince regulators that Google tilted the mechanics of the
search advertising business in its favor.
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