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02.21.07

Competition Fierce for Mobile Search

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MarketingVOX: Though they might be the biggest names on the internet, Google and Yahoo are finding that in mobile search they must still innovate and fight for market share, according to BusinessWeek.

A variety of stumbling blocks, ranging from slow connection speeds to clunky device keypads, has kept mobile search from taking off - and has allowed firms other than the two big portal players to grab market share as everyone ties up deals with mobile carriers and works to make search more useful for the end user. Mobile firm Medio actually claims to have more usage than either Google or Yahoo, because it is the default search engine on devices from Verizon, T-Mobile and Amp'd Mobile.

The brass ring, of course, is advertising revenue, which is forecast to reach $11.4 billion by 2011. Mobile service providers are looking for a share of the ad revenue when their users choose an ad after doing a search, something that's shaping how partnerships are forming. The service providers may choose a smaller player in the search field if they think they can get a larger percentage of the ad revenue than from a Google or Yahoo.

Those two giants have deals with some carriers, though the carriers say they're looking for alternatives. The search firm that makes the deal most advantageous to the carrier would be expected to win out in a given deal.

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