As Google and Microsoft’s share of the search advertising market continue to rise, Yahoo!’s share is expected to fall from 10.4 percent in 2010 to 8.1 percent in 2011, according to eMarketer.
In 2009, Yahoo! signed a deal to outsource its search to Microsoft. Research results returned to Yahoo! users show a “Powered By Bing” phrase. At the time the deal was inked, Yahoo! held a 13.7 percent share of the search ad market while Bing held 8 percent. Microsoft is expected to surpass Yahoo! in 2011 with 10.8 percent of the market share.
The same deal once existed between Yahoo and Google in 2000 to outsource search. In the late 1990s and early 2000s, Yahoo! was king of search. The Internet company even had its own magazine with paid subscribers. It was the authority on all things web. Yahoo! Magazine dealt with the emerging Internet and computer culture at the time. But by 2004 Google dethroned Yahoo! as the King of Search.
It appears Yahoo! may be repeating history.
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Is this the beginning of a slow demise for Yahoo!?