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Microsoft has been pouring a lot of time and attention into its new search engine Bing. At first, Bing's gains in marketshare came at the expense of smaller search engines — like Microsoft partner Yahoo. But that is changing. According to comScore, Bing bit further into Google's marketshare in June.

More important for the state of online advertising — paid search spending is on the rise.

Bing has slowly been creeping up in the search market since last year. According to Hitwise, Bing's share of the search market has grown 88% since its debut in June of 2009. At launch, Bing captured 5.25% of the U.S. search market. Now it retains 9.85% of the market. While still small, Bing is taking some business from the competition. Yahoo's marketshare has declined 11.24% over the last year, while Google is down 3.2% in that time according to Hitwise. 

comScore has similar numbers, measuring that Google dropped to a 62.6% command of the search market in June, down from 63.7% in May. That's the fourth month in a row Google has dropped. comScore estimated that Google has a 65.5% marketshare in February.

Both Yahoo and Microsoft have been using contextual search methods that have thrown off comScore's numbers in the past, but even accounting for that, the two engines made some gains against Google in June. According to JPMorgan analyst Imran Khan::

"Contextual searches at Yahoo! and Microsoft continued to impact the core search volume in June. As such, numbers may not be directly comparable to past months. On a reported basis, Google lost 110 bps market share in June vs. May, while Yahoo! and Microsoft were up 60 bps each. Excluding the impact of all adjustments, Google lost 20 bps of market share, while Yahoo! increased 10 bps and Microsoft grew 20 bps."

A more important measure for Bing's revenues might be ad impressions and click-throughs. And according to a new report from Efficient Frontier, both are on the rise at Bing, while remaining flat or down at Google and Yahoo.

But online marketers will be glad to hear that Bing's gains are not stealing their gains in a dwindling market. The online search business as a whole is improving. comScore estimates that U.S. core search volume increased 16.9% in the year since last June. That's even better than the 11.2% acceleration found in May.

And a report issued by SearchIgnite found spending on paid search in the U.S. grew 14% in the second quarter and 11% in the first quarter, compared with the same periods last year.

According to Roger Barnette, CEO of SearchIgnite:

"We've seen a marked increase in activity across our clients this year, with nonretail marketers bolstering their search investments for the first time since 2008."

Meanwhile, Google finally resolved its censorship issues in China this week and won approval to renew its ICP license in the country. Perhaps unfortunately for Bing's gains — the search giant is about to have a lot more business in the massive Asian market, and it might soon recover from the slight declines its search business has seen these last few months.

Image: SearchEngineLand

Meghan Keane

Published 13 July, 2010 by Meghan Keane

Based in New York, Meghan Keane is US Editor of Econsultancy. You can follow her on Twitter: @keanesian.

721 more posts from this author

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Bill Layton

Google may be slipping and Bing gaining, but that doesn't make Bing much of a search engine... especially for local search. I compare the two all the time in testing local results for local businesses, and Bing is incredibly un-informative... or perhaps I should say it LACKS RELEVANCY!

I am not impressed with Bing!

b.

about 6 years ago

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rory

About time Google had a serious rival, although I agree with Bill for local searches Bing gets beaten hands down. I still deem Google as the best and most important search engine and until Bing steps up its local search (something my SEO company heavily relies on) I'll be a Google man!

about 6 years ago

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Tom Doyle

It's great to see Bing make an impact. The interface on Bing is very nice, however I still can't get the results I need from Bing. They should focus more effort on the quality of their results and maybe then they will take an even larger piece of the pie.

about 6 years ago

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Will

And don't gloss over that last fact at the end there. As quickly as these gains have come for Microsoft, they can be lost. And if Google can really grasp the Asian market, it may happen sooner rather than later. I do hope for more competition between the two (and others) however.

about 6 years ago

John Courtney

John Courtney, CEO and Executive Chairman at Pay on Results SEO, Content Marketing, Social Media, Digital PR, PPC & CRO from Strategy Digital

All that marketing effort and Bing still isn't making a real dent in Google, despite the headline.  We still concentrate on Google for our clients.

about 6 years ago

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Bangalow Accommodation

Still tend to use Google - haven't found Bing to be dense enough in search results yet

about 6 years ago

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