Did Microsoft’s and Yahoo’s Search Deal Increase Google’s Market Share? (MSFT, GOOG, YHOO)

Microsoft Corp (NASDAQ: MSFT) and Yahoo (NASAQ: YHOO) have finally begun integrating their search services, but Google (NASDAQ: GOOG) may be the real winner in the search deal between Microsoft and Yahoo.

Experian Hitwise, an analytical firm which measures search market share, said that Bing-powered searches accounted for 24% of all queries during the first week of its deal with Yahoo, however, the firm also said  that Google’s market share for the month of August rose to 71.6%, suggesting that former Yahoo users may be moving to Google instead of using the new Bing-powered Yahoo.

ComScore, another metric of search market share, released data which suggested that disagreed with Hitwise’s information and suggested that search market share hasn’t really changed since Bing started powering Yahoo Search. ComSCore said that for the month of July, Yahoo! And Bing combined 28.1% of July’s explicit searches, while Google held relatively steady at 65.8%. ComScore’s data will likely be closely watched when August and September data is released to see whether or not their measure moves significantly.

Although Microsoft has boosted its search share somewhat with its partnership with Yahoo, it’s still fallen short of the company’s goals. In 2007, Microsoft Executive Kevin Johnson hoped that his company would have 35% search market share and 40% of online advertising within the next three to five years. Since Johnson made his comments, Google’s market share rose from 54% to 65% and Microsoft’s Bing has rose a few percentage points in search market share, but still hasn’t gained any significant traction against Google’s search market share.

Microsoft Corporation is engaged in developing, manufacturing, licensing and supporting a range of software products and services for different types of computing devices. Its software products and services include operating systems for personal computers, servers and intelligent devices; server applications for distributed computing environments; information worker productivity applications; business solutions applications; computing applications; software development tools, and video games. It operates in five segments: Windows & Windows Live Division (Windows Division), Server and Tools, Online Services Division, Microsoft Business Division, and Entertainment and Devices Division. It also designs and sells hardware, including the Xbox 360 gaming and entertainment console and accessories, the Zune digital music and entertainment device and accessories, and Microsoft personal computer (PC) hardware products. In December 2009, it acquired Opalis Software Inc.

Shares of Microsoft Corp (NASDAQ: MSFT) traded up 0.75% hitting $24.14 during mid-day trading on Monday.