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3 out of 4 Searches Prefer the Taste of Google Over Yahoo! It was the American Revolutionary John Adams who first said, “The Revolution was in the minds and hearts of the people.” In case you missed the memo, Google is winning the search war—if you measure success by looking at who controls most of the search market.
Yahoo, their biggest competitor in the US, has steadily lost out to the search giant over the last decade. But there was one area where Yahoo always beat Google—display ads. The gap is widening between spending on simple search ads, Google Inc.'s core turf, and spending on flashier display ads, which companies such as Yahoo Inc. and Microsoft Corp. had hoped to use to gain ground on Google.
I believe this matrix could well explain the widening gap between Google and Yahoo in US trends;
Gap widens in online advertising: Rivals struggle to catch up to Google as buyers favor search over display. The article's conclusion is dead on and ominous -- the gap between Google and its competitors in online advertising is widening and will continue to do so because the business that Google dominates, search advertising, is growing significantly faster than display advertising is.
Google is still a non player in display, and earns 99% of its revenue from search” but “Google accounted for 73% of the revenue in the larger and faster-growing search-ad marketplace, compared with Yahoo’s 13%, according to e-Marketer.
- Advertisers surveyed said that Yahoo was 29% better than the average, but Google was 43% better (compared to the 150 online media companies in the survey).
- Yahoo still wins out in marketing services, rated at 42% better than average. Google only got 7% better than average.
- Advertisers perceive virtually no difference between display ads audiences on Google and Yahoo.
- Google scored 19% above the industry average for customer service, while Yahoo ranked 9% above average.
We have noticed a really widening gap between Google and yahoo in several aspects and it’s not just like the Revolutionary War, this battle is fought in the minds and the hearts (but this time it’s the minds and hearts of advertisers and consumers).
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