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Microsoft's Search Market Share Continues To Slide

By Kevin McLaughlin
December 23, 2008    1:47 PM ET

Microsoft spent much of 2008 devising ways to increase its search market share, and may be planning to re-incarnate its Live Search offering as 'Kumo.' But according to recent search market statistics, Microsoft's multipronged push to instill some life into its struggling search business isn't paying off.

According to comScore's November 2008 search market data, Microsoft had an 8.3 percent share of the U.S. search market, down from 8.5 percent in October. Meanwhile, Google had 63.5 percent, up 0.4 percent from October, and Yahoo had 20.4 percent, down 0.1 percent.

Overall, U.S. Web surfers conducted 12.3 billion searches during November, but only used Microsoft sites for one billion of these queries, compared to 7.8 billion for Google and 2.5 billion for Yahoo.

Microsoft's trailing third-place position in search doesn't stem from a lack of effort. Microsoft has been trying to steer more users to its Live Search, and has inked deals with Dell and HP to include the Live Search Toolbar on new PCs. Live Search Cashback, which gives Web users rebates for purchasing products from participating Microsoft vendor partners through the Live Search site, is another example.

In the wake of its failed bid to acquire Yahoo, Microsoft has been steadily hiring away top talent from the struggling search giant, including Dr. Qi Lu, former vice president of engineering for Yahoo's Search and Advertising Technology Group, who last month was hired to run Microsoft's Online Services Group.

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