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Tuesday, January 24, 2006

Yahoo Not Obsessed With Growth In Search Share

Yahoo! Chief Financial Officer - Susan Decker recently told Bloomberg News that Yahoo! does not intend to gain market share in the search space. "It's not our goal to be #1 in Internet search. We would be very happy to maintain our market share." (via Steve Rubel). Decker says Yahoo! will instead improve advertising on its search results pages to bring in more revenue, saying that Yahoo does not think it's reasonable to assume that it would be going to gain a lot of share from Google. She declares that, "It's not our goal to be No. 1 in Internet search. We would be very happy to maintain our market share." Yahoo!'s comments underline the difficulties any Internet company faces in trying to challenge Google's dominance of the Web search industry. Google has at least double the market share of Yahoo! and Microsoft Corp. In Internet search, the largest and most profitable segment of online advertising. To boost revenue from each search, Yahoo! plans to make ads more relevant to search terms, meaning people will be more likely to click on them.Yahoo is not moving fast enough here. On the one hand while it claims that thay are very strong in Asia , it is surprising to note that yahoo ads are not rendered if the site publisher does not have a US postal address. Google has this facility for several months!! Consider The final punch : “Our goal has been to hold our share and to be a leading, if not the leading, total marketing platform, which would include both brand and search." One can’t find fault with Yahoo : its perhaps the most sensible of the internet companies.

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