Yahoo Replaces Google as Default Search Tool on Firefox Browsers

By Brian Womack  

Yahoo! Inc. (YHOO) replaced Google Inc. (GOOGL) as the default search engine on Firefox browsers in the U.S., as Yahoo Chief Executive Officer Marissa Mayer seeks out more partnerships to boost the Web portal’s traffic and revenue.
Google had been the automatic search option for the Internet browser, developed by Mountain View, California-based Mozilla Corp., since 2004. Under the agreement announced yesterday, Google, Microsoft Corp.’s Bing and other search services will be available as alternatives, No. 3-ranked Mozilla said in a blog post.
Mayer, who has been working to turn around the Sunnyvale, California-based company since taking the helm two years ago, is looking for ways to bolster Yahoo’s search business, which makes up about 40 percent of sales, minus revenue passed to partner sites. Earlier this year, Yahoo, which depends on Microsoft for its search technology, struck a deal with Yelp Inc. to deliver content from the review website.
“At Yahoo, we believe deeply in search -- it’s an area of investment, opportunity and growth for us,” Mayer said in a statement. “This partnership helps to expand our reach in
search and also gives us an opportunity to work closely with Mozilla to find ways to innovate more broadly in search, communications and digital content.”
Yahoo’s search service is under pressure, with the Web portal’s share of the U.S. search-advertising revenue projected to shrink to 5.6 percent in 2014 from 6.1 percent last year, according to EMarketer Inc. Google has maintained its leadership, claiming more than 70 percent of the market since 2010.
An e-mail to Google seeking comment wasn’t returned.

Search Share

Yahoo shares rose 1.1 percent in extended trading after the announcement. The stock declined 2.3 percent to $50.58 at the close in New York, leaving it up 25 percent this year.
Firefox has also lost ground to other browsers, according to NetMarketShare. In October, it held 14 percent of the global market, compared with 21 percent for Google’s Chrome and 58 percent for Microsoft’s Internet Explorer.
“It’s a nice little win for Yahoo, but I expect the boost will be fairly small in terms of search market share,” said Danny Sullivan, founding editor of Marketing Land & Search Engine Land. “Having said that, since Yahoo’s own search share is so small, picking up a percent or two can go a long way for their revenue.”
Mozilla said the agreement with Google had come up for renewal, providing a good time to evaluate its options. The new Yahoo search feature is scheduled to debut next month. China and Russia will get locally based default services.
“In evaluating our search partnerships, our primary consideration was to ensure our strategy aligned with our values of choice and independence, and positions us to innovate and advance our mission in ways that best serve our users and the Web,” Mozilla said.