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Yahoo vs. Google: And The Winner Is...

3. THE ALLIANCE REPORT: Yahoo vs. Google: And The Winner Is...

The two heavyweight fighters of the online world, Google and
Yahoo, remain locked in a titanic battle for supremacy, with each
dominant in their key areas, according to our latest online usage
survey from the ChangeWave Alliance.

The May 2005 survey of 1,440 professionals showed Google is not
only the primary online search engine by a huge margin (78%
Google; 14% Yahoo), it is also the most popular toolbar in home
browsers/applications (Google 38%; Yahoo 28%).

Yahoo, however, is far and away the most popular home page site,
and is also the primary Web site for online news and information
(Yahoo 32%; MSN 10%; CNN 8%; Google 5%). Importantly, more than
three times as many respondents use Yahoo email (18%) as use
Google Gmail (5%).

(To receive the complete “Yahoo vs. Google” report, send an e-mail
to alliance@changewave.com.)

Our “Yahoo vs. Google” survey results show that the two online
champions are embroiled in a slugfest across multiple
product/service areas in their high-stakes contest for domination
of the Internet. The results suggest the fight is far from over.

Both search engine behemoths are nearly identical in annual
revenue: Yahoo generated $4 billion and Google $3.8 billion over
the past 12 months. Yahoo still racks up the higher gross profit.
However, based on Google’s strong 2005 stock performance, the
savants on Wall Street are betting on Google to outperform Yahoo
and the rest of the online pack.

Google’s advantage becomes evident when we turn to online usage
trends. When asked if they use more Google products/services than
a year ago, 52% of respondents said Yes, compared to 1% who said
No. Yahoo’s numbers, while also good, weren’t nearly as
impressive, with 31% saying they use more Yahoo products/services
this year and 8% less.

Looking ahead, 38% of respondents said they’d use more of Google
next year and only 1% less, while 20% said they’d use more of
Yahoo next year and 4% less.

In terms of user satisfaction, the survey found Yahoo (94%
Satisfied; 6% Unsatisfied) nearly even with Google (97% Satisfied;
3% Unsatisfied). But, when the question turned to overall favorite
Web site, Yahoo (32%) beat Google (17%) by nearly a 2-to-1 margin.

Other critical aspects to the Yahoo vs. Google fight, particularly
the growing shift toward paid services, will be the focus of a
future ChangeWave Alliance survey.

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