Yahoo's Share of Search Ad Market to Drop to Single Digits This Year [REPORT]

 By 
Todd Wasserman
 on 
Yahoo's Share of Search Ad Market to Drop to Single Digits This Year [REPORT]
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eMarketer projects that Yahoo’s percentage of the search ad revenue pie will fall to 8.1% this year compared with 10.4% in 2010. Meanwhile, Bing's share is expected to grow from 10.2% in 2010 to 10.8% for 2011, and Google is on track to grow its share from 71.4% to 75.2% over that time.

By 2012, Yahoo’s portion will fall even further, to 6.5%, according to eMarketer. Meanwhile, Bing’s and Google's shares are expected to hit 11.1% and 76.6%, respectively.

Yahoo inked a 10-year deal in 2009 to outsource its search to Bing and include a “powered by Bing” mention with its search results. Yahoo had used Google for the same function for four years starting in 2000 and by 2004 Google had unseated Yahoo as the top search engine in the world.

The researcher’s projections coincide with Yahoo’s introduction yesterday of Search Direct, an offering similar to Google Instant that finds results instantly as you enter characters in your search.

In a press conference yesterday, Shashi Seth, Yahoo’s vice president for search pronounced Search Direct the future of search, stating “I want you to remember three words: ‘Answers, not links.’ ” Search Direct is currently available on search.yahoo.com but not on Yahoo’s home page. For a full description of Search Direct, see the video below:

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