measuring the internet age™ comscore qsearch™ the search landscape industry highlights &...
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Measuring the Internet Age™
comScore qSearchcomScore qSearch™™The Search LandscapeThe Search Landscape
Industry Highlights & Trends For SESIndustry Highlights & Trends For SES
James Lamberti
Senior Vice President, comScore Networks
August 2006
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comScore Methodology – “Large, Representative, Panel”
2 million online consumers who have agreed to be continuously and passively observed
Proprietary technology collects all Internet activity including search, ecommerce, and more
Key advantages of our approach
Capture actual consumer searches
Totally passive methodology
Multiple search metrics for in-depth analysis• Searchers
• Distinct searches
• Keywords and Clicks
• Ad Impressions
comScore Panelist
comScore Servers
World Wide Web
Passive tracking of actual consumer search activity
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comScore qSearch™ Data SourcesHundreds of clients rely on our data including all major search engines
qSearch™ Audience Measurement: Market & Share Tracking• U.S., England, Germany, France, Canada, Italy, Spain, and Worldwide
• U.S. segment of Home, Work, and College/University
• Tracking since January 2003
qSearch™ Local Search Audience Measurement• IYP and Local Web Search since January 2004
qSearch™ Monetization and Click-Rate Reporting• Ad Coverage, Algorithmic and Sponsored Click-thru rates since January 2004
qSearch Customer Satisfaction Tracking• Surveyed attitudes linked to actual behavior since Q2 2004
qSearch™ Custom Analysis• Search link to eCommerce
• Heavy/Medium/Light Searcher Analysis
• Searcher Loyalty Analysis
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The U.S. Search Market Passes the 6 Billion Mark
Source: comScore qSearch Total US Internet Users
Expected seasonal declines as we head into Summer Query growth up 12.3% Q2 ’06 vs. Q1 ’06 after the May peak of 6.8 Billion
5.1 5.2 5.0 4.8 5.0 5.0 5.1 5.2 5.2 5.5 5.8 6.4 6.6 6.8 6.4
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Bill
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Total Searches
June down 6% vs. May
June down 6% vs. May
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Q1 Surge in Intensity is Driving Recent Growth
80
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Un
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ea
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(M
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Sea
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earc
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Unique Searchers Searches per Searcher
Source: comScore qSearchTotal US Internet Users
2005 Broadband Adoption Drove Searcher Penetration Increases Through April 2006 This New Bandwidth is Now Driving Increases in Intensity
January 2006 intensity increases are fueling recent growth
January 2006 intensity increases are fueling recent growth
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Search Relies on the Heavy User Segment
Source: comScore qSearchTotal US Internet UsersSearch segments were first measured in July 2005
Total Searches by Type of Searcher
0
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Medium Searchers (30%) Light Searchers (50%) Heavy Searchers (20%)
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40
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The top 20% of the market drives the majority of activity Heavies are 3x more active than medium and 15x more active than light
Average number of Searches per Searcher in June 2006
Average number of Searches per Searcher in June 2006
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Year-over-Year Growth Rates Rebounding as a Result
Year-Over-Year % Change in Searches
-20%
-10%
0%
10%
20%
30%
40%
50%
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70%
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Google Sites Yahoo! Sites MSN-Microsoft Sites
Source: comScore qSearchTotal US Internet Users
All major engines are growing Softness in Q4 an indication of emerging seasonality
* Due to a definitional change occurring in June 2006 which resulted in an NEDOM-DNS error, trended data for the Time-Warner Network are not available
*
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Share of Searches
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
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Google Sites Yahoo! Sites MSN-Microsoft Sites Time Warner Network Ask Network
Source: comScore qSearchTotal US Internet Searches
Google’s Share Trending Up for 11th Consecutive Month
All players lost ground to Google; Yahoo! is generally flat over recent 4 months Will Ask become the 4th largest engine in 2007?
44.7%
28.5%
5.6%
12.8%
5.1%
June 2006 Market SharesJune 2006 Market Shares
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All Major Engines Show Significant Penetration
Searcher Penetration
10%
20%
30%
40%
50%
60%
70%
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Google Sites Yahoo! Sites MSN-Microsoft Sites Time Warner Network Ask Network
Source: comScore qSearchTotal US Internet Users
62.9%
52.4%
21.9
34.8
20.8
June 2006 penetration June 2006 penetration
Significant penetration provides an opportunity for all engines to gain share
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Intensity Drives the Existing Share Gaps
Google is averaging 29.4 searches per searcher; Ask is 9.6 Searcher intensity ranking mirrors overall share positions closely
Searches per Searcher
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Google Sites Yahoo! Sites MSN-Microsoft Sites Time Warner Network Ask Network
Source: comScore qSearchTotal US Internet Users
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Sponsored Ad Coverage Generally on the Rise
Sponsored Ad Coverage
40%
45%
50%
55%
60%
65%
70%
75%
80%
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Google Web Search Yahoo! Web Search MSN Web Search
Sponsored search coverage now ranging from 60-76% for all engines
Source: comScore qSearchTotal US Internet Users
MSN is the highest with 76% coverage
in June
MSN is the highest with 76% coverage
in June
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Sponsored Clicks Responding to Ad Coverage
Sponsored clicks up 38% in June ‘06 vs. year ago compared to 29% for algo
bil
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Source: comScore qSearchTotal US Internet Users
38%
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Algorithmic Sponsored Column 3
Year-over-year growth is 38%Year-over-year growth is 38%
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Total Sponsored Clicks by Engine
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Google.com/Google Yahoo! Search MSN Search AOL Ask.com
Sponsored Clicks Increasing For All Engines
These data are a much better indication of financial performance than queries
Source: comScore qSearchTotal US Internet Users
June 2006 Sponsored Clicks June 2006 Sponsored Clicks
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Web Search Remains the Dominant Consumer Activity
Source: comScore qSearch
News and Image growth is strongest, but it remains a small fraction of total activity Local/IYP Search growth lags the overall market despite product development efforts
mil
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Percentages represent year-over-year growth
Percentages represent year-over-year growth
Vertical Searches and Total Searches Growth (May 2006 over May 2005*)
610285
811685
5,276
4,075
7,132
5,423
2005 2006
News & Image Search Local/IYP Search Web Searches Total Searches
MayMay
114%18%
29%
32%
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Total Toolbar Searches
Toolbar Searches
0
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1,000
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Mill
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Toolbar searches were at an all-time high in May on both an absolute and share-of-total basis
Source: comScore qSearchTotal US Internet Users
850 Million Searches in June
850 Million Searches in June
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Yahoo! and Google penetration gap continues to narrow
Toolbar Searcher Penetration
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Google Sites Yahoo! Sites MSN-Microsoft Sites
Yahoo! and Google Maintain Toolbar Leadership
Source: comScore qSearchTotal US Internet Users
56.8%
46.5%
Penetration in June 2006
Penetration in June 2006
5.9%
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Local Share of Searches
After several months of consistent shares, Google outpaces Yahoo! by about 25 million searches in May ‘06
Source: comScore qSearch, Local/IYP ReportTotal US Internet Users
31.2%
28.1%
12.1%
6.4%
2.4%
Local Search Shares
0%
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Google Sites Yahoo! Sites MSN-Microsoft Sites Time Warner Netw ork Ask Netw ork
Local Shares in May 2006
Local Shares in May 2006
*
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What Metric?• Distinct Searches
• Result Pages
• Clicks/Referrals
What Population?• U.S. only
• Worldwide at .com locations
• Local shares in Canada, UK, Germany, France, Italy, and Spain
What Location?• Search Ad networks
• Total portal activity
• Search property only activity
What is Engine X’s Market Share? It depends…
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Thank YouThank You