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Yahoo to Drop to Single-Digit Ad Market Share

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In its current state, is there any other company more ironically named than Yahoo?

As Yahoo debuts its Search Direct feature -- something it describes as the "fastest thing you have ever seen" -- a dismal inevitability looms on the horizon. According to researcher eMarketer, Yahoo's share of the search advertising market is projected to fall to single digits this year. Specifically, 8.1%.

To put that into perspective, Bing's share is expected to rise from last year's 10.2% to 10.8% for 2011. Google, the king of the search ad market, will grow even more -- from 71.4% to 75.2% during the same period of time.

Yahoo, on the other hand, is in the midst of falling from 10.4% in 2010 to 8.1% this year.

And it gets worse.

By the time 2012 rolls around, eMarketer predicts Yahoo falling to a minuscule 6.5% -- while Bing and Google hold strong at 11.1% and 76.6%, respectively.

Yahoo has relied on Bing's search results since partnering up with the Microsoft search engine in 2009. Since then, the former dot-com giant had languished second place -- far behind Google -- until last September, when Bing surpassed it. Now, Yahoo is relying heavily on its new Search Direct -- a feature very reminiscent of Google Instant which finds results as you type -- accessible now on

To its credit, Search Direct is indeed fast and accurate -- a neat little feature. It's just a shame that fewer people will see it now than at a point when Yahoo really needed them to.

Here's video of it in action:

(See also: Bing Turns Japan Quake Into a Money-Making Opportunity)

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POSITION:  No positions in stocks mentioned.