Do You Know What Your Competitors are Doing Online? Hitwise does August 7, 2006 Search Engine Strategies – San Jose Search Engine Landscape

Who We Are  Online Competitive Intelligence Service  Monitor the largest worldwide sample of Internet users  Report on the most online businesses  Provide daily delivery of information to drive better business decisions  Founded in 1997 with profitable operations in the US, UK, Australia, New Zealand, Hong Kong and Singapore  1,200+ Clients Worldwide About Hitwise

Hitwise Intelligence

Search Engine Market Share  Google continues to grow at a rate of 15.3% compared to July 2005  Yahoo! Search and MSN Search lost market share at 7% and 27% respectively  The top three search engines accounted for 76% of all visits to Search Engines category (Hitwise tracks over 2,230 sites in this category) Market Share of Visits Based on All Internet Sites 7/05 – 7/06

Search Engine Search Volume  Percent volume of executed searches shows a slightly different picture  Google provides over 60% of all searches  Top four search engines accounted for almost 98% of all executed searches Volume of Executed Searches Data Period: Four Weeks ending 7/29/06

Yahoo! Search younger MSN Search older Google higher income Search Engine Demographics  Search usage is ubiquitous across all demographic groups  Slight differences among the major engines:  Yahoo! Search users more likely to be under 35  MSN Search users more likely to be over 35  Google users have slightly higher incomes Data period 4 weeks ending 1/14/06

Google Yahoo! MSN  Combined market share of portal/search properties over 20% of all Internet visits  When examining market share of top 10 properties for Google, MSN and Yahoo! we see a different story  Market share of visits to Yahoo! properties over twice the size of MSN and Google properties  The line between content and search is beginning to blur, giving portal search engines an advantage Market Share of Visits: Aggregation of Top Ten Properties Search Engine Market Share Data Period: Week ending 1/14/06

Google Breakdown  Traffic data around top 20 Google properties confirm that primary usage of Google’s tools are search related  Google & Google Image Search alone account for over 88% of all visits to top Google properties

Search Brand Identity  Search term data provides insight into consumer perceptions of brand  Common queries containing top brands reveal that: -Google queries center around locating information, expansion of mapping and video -Yahoo! well rounded on content channels – portal-like -MSN about tools and content

Next Competitive Threat?  1000% growth in market share of visits for the combined top 10 MySpace properties  Compared to top properties for other portal players, MySpace is bigger then MSN and Google properties

Google Upstream from MySpace  MySpace now represents the #1 upstream site (or site visited prior) for Google.  % has grown from 4% in January to over 10% at the end of July  Traffic connection is primarily organic in nature (ex. Google toolbar searches during MySpace session)

When MySpace is Down  While market share of pages was down for MySpace, visits were up  Google as well as some other social networks experienced a growth in visits during the outage  On June 22 nd and 23 rd MySpace experienced outages due to California Blackouts  Site outage provided view into impact of MySpace on Internet usage

Bill Tancer Hitwise Inc. Blog: weblogs.hitwise.com