re: Google Laughs at Yahoo! and Microsoft

I just read an article over at fool.com which talked about the recent Neilson ratings for search on the internet in the US.  One premise in particular bothered me for its lack of insight into the numbers being presented.

There were nearly 7.8 billion searches performed in the United States last month, according to the study. That’s 2% lower than the traffic a year ago….what if Google is carving out thicker slices of a shrinking pie?

Considering that Google holds 61.9% of the market share, and their primary goal is improving search results, it stands to reason that as time progresses and Google improves search results, that people will need to make fewer searches to get what they want.  This doesn’t represent a shrinking pie, it represents an increase commodity value.  As Google becomes more and more reliable in providing results, the price they can demand for search term ads will increase because they will be the go to solution for search.

Cheers,

Tarandon