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11/25/2024 01:10:36 am

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Yahoo, Microsoft Continue Search Deal as Bing Hits 20% Market Share

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(Photo : Reuters) Yahoo will continue its search partnership with Microsoft's Bing engine.

Bing has hit a remarkable milestone in its long and rather bleak life, finally reaching 20 percent market saturation in the U.S. ahead of Yahoo, Ask and AOL. It's still in second place to Google's dominant 68 percent market share but that market dominance is dropping.

The news comes a few hours after Yahoo announced the continuation of its search partnership with Microsoft's Bing engine. The partnership will come with more search result freedoms, allowing CEO Marissa Mayer to really change the landscape of search at Yahoo.

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Even though it's still a powerful partnership for Microsoft with Bing ads and results, the new partnership allows Yahoo to build its own search experience to rival Bing and Google. This is what Mayer has wanted ever since joining Yahoo two years ago.

Bing reaching 20 percent market share in the U.S. is definitely the bigger story out of the two though, considering the potential future growth of Microsoft search engine and the effect that may have on search ads, which in turn could have big effects on Microsoft's revenue.

The new growth in search traffic may come directly from Microsoft's deals with Apple. Bing powers Spotlight and Siri, and Yahoo's deal with Mozilla indirectly benefits Redmond. No company wants to partner with Google due its dominance in other markets.

Google has also lost quite a lot of friends due to mistrust and has launched services with similar goals as partners. It has made partners nervous that Google will use information from the company to build its own service to replicate the experience.

Apple dropped Google's service between 2011 and 2013, removing YouTube, Google Maps and dropping Google as the default search engine. The two companies aren't working on any partnerships, with relationships deteriorating with Larry Page returning as CEO and Tim Cook taking over the CEO role at Apple.

Search is still Google's main market for income. It makes 90 percent of its revenue from advertising, mostly from search. If it loses that market share, Google might be faced with a large gap in the profits area, which may force cutbacks on moonshots like the self-driving car and Project Loon.

Investors are already worried by Google's lackluster performance in 2014 and Google's not launching any major services or products. It will be up to Google to put on a show at I/O this year to win back investors trust.

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