07 March 2006

Search Engine revenues falling in 2006

comScore Networks reported Tuesday that, while still rising, the rate of growth in search activity, has slowed considerably.

In January 2006, Internet users made 5.48 billion online searches, an increase of 11 percent since January 2005. While this is an increase, it is markedly less than the increase from Janunary 2004 to January 2005.

Google handled 41.4 percent of all searches conducted in the United States, while Yahoo ranked second with a 28.7 percent share, and MSN ranked third with a 13.7 percent share.

Google also took top share in toolbar search, with 49.5 percent of all toolbar search. Yahoo! accounted for 45.5 percent of toolbar searches.

During December 2005, 57.2 percent of search results included a sponsored ad, up from 49.1 percent a year earlier.

While search engine advertising revenues may be increasing, the slowing of search activity may mean less overall Internet advertising revenues.

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