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February 01, 2008

Could Microsoft help Yahoo! win the war of mobile search?

The just starting battle for mobile search is what I thought of when I heard this morning's news about the plans by Microsoft for purchasing Yahoo!.

While Google has 75% of the traditional online search advertising market, Yahoo! still leads in online display advertising. From eMarketer.com:

"Google still dominates the market, of course, raking in 75% of US paid search advertising in 2007, up from 60% in 2006. Yahoo! at No. 2 collects a mere 9%, with the other search engines splitting the remaining 16%...."

And search advertising is and will be the big boomer:

"Advertisers spent over $8.6 billion on search in 2007. That figure is expected to nearly double by 2011 to almost $16.6 billion."

But, online display advertising doesn't fare as well:

In 2007, display ads brought in nearly $5 billion. By 2011, eMarketer predicts display spending will reach over $8 billion.

So we can see here that Google has the traditional online search well in hand, but the market for mobile search advertising is wide open at this point. Mobile search advertising is in its infancy now, but I do understand that eMarketer will be coming out with a report on this topic some time this month.

UPDATE: Even Google isn't bulletproof. From Wired's "Google's 4Q Earnings Miss Raises Worries":

Now, it looks like February will begin on a sour note. Google shares fell 6.7 percent, or $37.99, to $526.31 at the open of trading Friday, after the company released fourth-quarter results that missed analysts' expectations.

ANOTHER UPDATE: This table is from the eMarketer report "Mobile Search: Clash of the Titans." They will be updating the data some time this month.



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