Google (GOOG) Beats Yahoo! (YHOO) Like A Rented Mule
May 30, 2008 by Douglas A. McIntyrecomScore (SCOR) and other analysts made the mistake of saying that Google’s click-through rates on the text advertising that runs next to its search results we not doing very well in Q1. Earnings from the search company showed otherwise. The stock soared and that was that.
Now, comScore has come out with it April figures and Google’s click rates are rising with its share price. The Wall Street Journal writes "according to comScore, Google saw better-than-expected 20% growth in U.S. paid clicks in April compared with the same period a year earlier."
The numbers for Yahoo! (YHOO) dropped 4.4% from the same month a year ago. Microsoft’s (MSFT) performance was off 9%.
Does it matter if Microsoft buys Yahoo!? Based on the fact that both are losing search share, a marriage may do little. Now it appears that the advertising systems at the No.2 and No.3 search operations are losing momentum while Google moves forward like a clipper ship under full sail.
The competition for search may be ending, so the portals like MSN and Yahoo! may have to find a new way to make money. Both are getting deeply into the targeted display ad business which could increase efficiency for that kind of marketing on the web.
It better work.
Douglas A. McIntyre
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