• by June 8, 2004

A Standard & Poor's survey of Internet users found that nearly half of all search engine users choose Google over rival services. The survey, conducted by InsightExpress, found that 48 percent of search engine users go for Google, 20 percent prefer Yahoo!, 14 percent like Microsoft Corp.'s MSN and 7 percent use America Online's AOL. By the way, S&P's initial estimates for Google's market value is $33 billion to $40 billion.

The results, released yesterday, leave little doubt that Google is the 800-pound gorilla to beat. The Yahoo!/Overture team must narrow the gap as Google speeds ahead and looks to maintain its edge. Interestingly, the survey finds that more than 6 of 10 Google users said they would switch search engines if a better service was introduced.

Fewer than 25 percent of search engine users would be very likely (8 percent), or somewhat likely, (15 percent), to register for and use a new email service. Google's proposed free Gmail service offers unlimited storage, email search and targeted advertising. The service, however, has raised privacy concerns as Google will scan email messages for keywords to determine how to target ads. Text ads would be inserted into email messages.

With Google's focus on its IPO, diversifying products and services and who knows what else, there's an opportunity for the competitors to mount serious challenges to its marketshare lead. If the S&P survey is any indication, there is some wiggle room in the market for the rivals to gain share, whether through delivery of new features, ease of use, relevance, or something else completely new and different. The question is, whether Google will allow any share slippage.