Google Takes Half of All U.S. Searches, Nielsen Says

American Web surfers continued to flock to Google in April, using the Internet search site for 50 percent of their 5.3 billion queries, according to a research report.

That marked a rise from Google's year-ago market share of 47 percent, while second-place site Yahoo held steady at 22 percent, and Microsoft's MSN dropped from 12 to 11 percent, according to Nielsen/NetRatings.

The trend mirrored an announcement Thursday that Dell had agreed to load as a default on new consumer PCs certain Google software, such as its desktop search application and browser toolbar, at the expense of competing Microsoft products.

Vying for Customer Loyalty

But Google cannot sit on its lead for long, warns Michael Lanz, vice president of search industry solutions for Nielsen/NetRatings. The top search providers will continue to compete for customers' loyalty with new features, improved functionality, and rewards programs, experts like Lanz say.

In the past year alone, all of the big three search companies have succeeded in boosting their respective numbers of monthly searches. Google's search count rose 34 percent, from 1.9 billion searches in April 2005 to 2.6 billion in April 2006. Yahoo rose 27 percent, from 919 million to 1.1 billion, and MSN rose 10 percent, from 515 million to 570 million.

More Searches Mean More Revenue

Those numbers can translate into revenue as increased traffic allows each search company to charge a higher rate for more exposure of clients' advertisements.

That could be lucrative territory, since the top shopping terms entered on Google in April included retail giants such as Home Depot, Wal-Mart, Target, Sears, and Best Buy. Of course, pure entertainment still rules the Internet: The top overall Google search terms for the month included Nick Lachey, Denise Richards, Miss USA, Cinco de Mayo, and Bettie Page.

This landscape could begin to change by the second half of 2006, says Allen Weiner, an analyst with technology market research firm Gartner.

Moving From Straight to Social Search

Search providers are moving from a "straight search" method based on algorithms and page rankings, to a "social search" method that incorporates human knowledge and other people's preferences.

Yahoo has made the most progress, with its Yahoo Answers site already running, while Google has lagged with its Google Co-op site still ramping up. Yahoo also has an advantage in worldwide traffic, with a greater Web presence outside the United States than Google has, Weiner adds.

In the meantime, Google will rely on sheer numbers to preserve its advantage. "These three guys are like the three TV networks back in the old days; and right now Google has the top-ranking show," Weiner says. "Until proven otherwise, they're the leader."

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