Bangalore: A joint search offering from Yahoo Inc. and Microsoft Corp. could challenge Google Inc.’s supremacy in the Indian market, say analysts. According to an August report by market research firm comScore Inc., Google is the market leader in the Indian search market.
“Unlike in Korea, Japan and China, there are no strong local challengers to these global players. So essentially the market will be divided between the new Microsoft plus Yahoo combine on one hand and Google on the other,” said Ravi Shekar Pandey, manager (syndicated research) at research firm Springboard Research.
“They (Yahoo and Microsoft) can emerge as a potent threat to Google, which in India enjoys a higher market share than it does in the US,” he added.
The search market in India is very small and research firm Zinnov Management Consulting Pvt. Ltd estimates it to be worth $40 million (nearly Rs200 crore) in the current year. Praveen Bhadada, engagement manager at Zinnov, said: “Last year in a joint study with (industry body) Nasscom, we estimated that Indian search market was worth $25.2 million, but growing at a fair clip.”
India has 35 million small and mid-sized businesses looking for search-based online marketing, he added. “So the Indian market has only one direction to go in terms of revenue it generates—up.”
While the Indian market has several local players, including new ones such as AskLaila, JustDial, MapmyIndia, it’s still largely a battle between the global firms.