Ronnie05's Blog

State of Search and Bing’s Challenge to Google!

Posted in Internet and Search by Manas Ganguly on June 30, 2011

Google still rules the Search Kingdom by a few hundred furlongs.Latest reports from IgnitionOne, show how Google commanded 81% of all US search advertising spend in Q2 2011. This figure is actually up slightly from the previous quarter and a 17.7% increase from Q2 2010. Meanwhile, Yahoo/Bing spending dropped 7.7% from Q2 2010.Bing, increased its US search market share about 75%, from 9.7% in May 2010 to 17% in May 2011. Meanwhile, Google lost 14% of its search market share in the same timeframe. The combined Yahoo/Bing also saw YOY declines in other key metrics, with cost-per-click (CPC) down 11% and effective CPM (eCPM, or effective cost per thousand views) down 9% year-over-year. Yahoo/Bing clicks (3.6%) and impressions (1.4%) grew slightly year-over-year. However, Google’s rate of growth in these two metrics was approximately nine times greater for impressions (12.8%) and five times greater for clicks (17.6%).Google’s AdEx saw nearly 230% growth in spend year-over-year on a same client basis, despite a 20.5% decline in CPM.

Search is going social, and so Bing’s partnership and integration with Facebook – the world’s biggest social network – could potentially materialize into a big advantage over Google. Furthering the social connect, Bing has enhanced the way it takes and uses data from Facebook (such as Likes and interests) to create personalised search results.

Quoting Qi Lu, director of Microsoft Online Services: Bing and Facebook are collaborating to create a search experience that doesn’t exist at the moment. What’s missing from search is the trusted opinion of people you value.

There are still industry debates about whether Likes do add a level of trust and whether they’re all that valuable in the context of search.

1. But if social is going to play a role in search, then having access to Facebook’s data (which Google doesn’t have), gives Bing the advantage of being able to try new techniques and models for marrying the two areas.

2. Android is activating around 500K devices every day. That is 15 million Android’s in a month which means Google is going full steam at the Mobile Search. Bing is not sitting it out there and has partnerships with RIM, Nokia, Verizon to make Bing the default search engine. Bing is thus not too far behind Google, if not abreast, in providing best vertical searches on mobiles.

3. Bing’s iPad app is hailed as a more complete experience than Google’s equivalent app and really maximizing the benefits of the high resolution touchscreen device. This is significant because Apple makes Google the by-default search engine on its devices. By holding a “better experience” Bing makes itself a better alternative to Google on Apple’s devices.

4. A tighter data privacy than Google, may give Bing an advantage. The issue of data privacy is growing in importance as people wake up to the wide range of information that is available about them on the web. Google has not been able to convince users wholly about the efficacy of its data privacy policies, yet.

5. Microsoft’s Xbox is much more than a games console. For many users it acts as the gateway to the internet from their living room, making it a central part of their online experience. And Bing powers the experience from these gaming consoles.

Google has been way ahead for quite some time now – and has done so many things right, that it’s difficult to say whether Bing will ever be able to catch up. And it’s worth noting that Bing has only been able to gain some critical market share in the US so far (where Bing plus Yahoo – which is powered by Bing’s search engine – jointly have around 30%), while Google has a very dominant 90% + share in most European countries.

So part of Google’s global success is partly down to its commitment to investing in international versions of its products and quick penetration of countries outside the US. Bing will definitely need to add internationalisation to its plans if it is to get closer to its rival.

But at least the intense competition between the two is fuelling innovation and change and is great entertainment for industry watchers.

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