Most analysts believe that Bing, Microsoft’s new search engine, is off to a solid start, with results that are close to matching Google’s in relevance, a design that resonates with some consumers and a good brand. If nothing else, the release of Bing earned the beleaguered software giant, a perennial underdog in search, some respect.
But how well did Bing do in its first month, when the new search engine was backed by a huge ad campaign and media blitz?
Bing’s debut was decent, but definitely not great.
Audience measuring firm comScore said Wednesday that Microsoft’s share of the American search market inched up to 8.4 percent in June, from 8 percent in May. That is a good one-month lift. It could be termed great if Microsoft can sustain that rate of growth in coming months. But for perspective, consider that Bing’s June market share is still lower than Microsoft’s share of search in January (8.5 percent) or in June 2008 (9.2 percent).
Bing’s gains appear to have come at the expense of Yahoo, which saw its market share drop to 19.6 percent, from 20.1 percent in May. Google’s share remained flat at 65 percent.
Just about everyone expected Bing to show some gains. One month, of course, does not a trend make.
“While the data indicates a very modest near-term bounce, we will be watching closely to see if any query pickup is sustainable,” Christa Quarles, an analyst with Thomas Weisel Partners, wrote in a note to investors.
Douglas Anmuth, an analyst with Barclays Capital, said that Bing’s gains were less than expected.
“While the share gain is positive for Microsoft, and Bing was the only one of the 3 large search engines to increase queries [from month to month], we had expected Bing share to come in between 10-11%. As a result, we believe the search data is a slight positive for both Google & Yahoo, and it should serve as a sigh of relief to some investors who were concerned about the early impact of Bing. Bing’s gains did come virtually all from Yahoo, but the overall impact was still less than anticipated.”
Benjamin Schachter, of Broadpoint AmTech, said:
“The slight uptick for Bing does not come as a surprise. The more important question is whether Microsoft can sustain any real momentum and, if so, will Bing impact the longer-term competitive dynamic for search advertising, as well as the possibility for a Microsoft/Yahoo tie-up?”
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