Yahoo, MSN Search Share Data Shows They Need to Partner ... Now!

(MoneyWatch)  With Microsoft's talks with Yahoo about an advertising partnership back on, it's time to take a look at search share, as I did several months ago, and, more specifically, at how Yahoo and MSN as a joint search venture stand up to Google. As was true back in January, their share of searches continues to slip, sliding to a combined 26.1 percent from 27.4 percent according to Nielsen Online's March numbers. Meanwhile, Google's share increased to 64.2 percent, from 62.8 percent only two months ago.

For Yahoo, at least this March, was better than last March (see below), when it lost 4.5 percent share. However, both Yahoo and MSN are seeing extremely anemic growth as compared with what they were experiencing only two months ago. In January, Nielsen Online numbers showed Yahoo had grown by 8.7 percent compared to the year earlier, and MSN had grown by 18.3 percent. Compared to last March, the two grew by 1.7 percent and .3 percent, respectively.

I could crunch these numbers endlessly, but the result would be the same: the longer Yahoo and MSN wait to form a relationship, the more headway they are giving to Google. For the definitive post on the latest in this long flirtation, check out Kara Swisher's post at her AllThingsD blog. She reports that the two are no longer just talking about a search partnership, but one in which Yahoo and MSN might also pool display inventory. Not a bad idea, if they can just pull the trigger.