MSN Search slips back in market share

By Steve Malone

Posted on 26 Apr 2006 at 10:32

MSN Search achieved only a nine per cent share of the US search market in March according to new figures released by Nielsen Netratings. The numbers put MSN Search in a poor third place in a search market dominated by the big two.

Between March 2005 and 2006 MSN Search's share dropped from 14 percent to 11 percent year on year. Meanwhile, Google accounts for 49 per cent of all searches in the US while Yahoo! notched up a 22 percent market share.

The figures for Microsoft would look better if it could show some solid progress. However, figures show that the number of searches on MSN Search has grown by only nine per cent year on year. Contrast that with Google and Yahoo! which grew 41 per cent and 47 per cent respectively. The average growth in the search market in the US was 36 per cent.

It is worth remembering that MSN Search only debuted as a full Microsoft product in February this year. Previously, the search results on MSN had been provided by Yahoo! and LookSmart.

While MSN has been struggling to get its nascent search engine widely adopted by Internet users, Google and Yahoo! have been working hard on customer loyalty. 'As the recognised leaders in the search market, Google and Yahoo! continue to gain ground as new features, such as instant search suggestions and video search, heighten loyalty among their users' said Michael Lanz, the VP of search industry solutions at Nielsen/NetRatings. 'To compete, other search providers must be equally innovative and build consumer trust in their search results.'

Although the figures look poor now, Microsoft will hope that the landscape will be transformed when Vista debuts. Even so, MSN Search is not guaranteed to be the default search engine with IE 7 on new Vista PCs. Mindful of the scrutiny of various anti-trust bodies around the world, Microsoft will reportedly allow OEMs to have the final say over what search providers are available in the drop-down menu and which one is the default.

Nevertheless, as if to confirm it will do what it takes to move on from the unaccustomed position of poor third, Microsoft has recently hired Steve Berkowitz from Ask.com. Berkowitz is credited from turning the Ask site from a failing also ran in the search market into one that is at least going in the right direction.