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AUSTIN, Texas - Sunnyvale, California-based Internet portal and search engine company Yahoo ended November as the Web's most popular overall destination according to research released today from comScore Networks, edging out Google's 131.5 million visitors with a figure of 136.1 million, while trailing well behind the search leader in its share of search engine traffic, garnering a 22.4 percent share to Google's 58.6 percent. Statistics from another Web traffic analysis firm, Nielson Company's Nielson Online service, show (.PDF file) similar search engine share figures, with Google occupying the top position at 57.7 percent and Yahoo coming in second with a 17.9 percent share. Combined with stock market figures showing Yahoo stock down seven percent for 2007, the company headed by CEO and co-founder Jerry Yang may find it difficult to celebrate its top Web portal position, especially in light of Google's strong 54 percent stock value increase so far this year. Yahoo Faces Challenges in 2008 Yahoo's portal directs visitors to its various branded Web destinations and services relating to finance, news, shopping, entertainment and others, however convincing online advertisers, who account for 45 percent of its revenue, that the company holds a valuable position as the top portal may become increasingly difficult during 2008. "The challenge for Yahoo coming into 2008 is that their salespeople have to convince their advertising accounts about the value of the property and reflect that in a better growth rate," according to comments from industry analyst Martin Pyykkonen of Global Crown Capital in a recent Investor's Business Daily article. The figures from both Nielsen and comScore show trends similar to October analysis from Hitwise. Contract with AT&T Facing Renegotiation Yahoo's broadband Internet service provided through AT&T, known as AT&T Yahoo!, faces a contract expiration in the spring of 2008, which is expected to be renegotiated to bring more favorable advertising revenues to Yahoo than the current even split with AT&T. As early as 2000 Yahoo has dabbled in the Internet access business, however since chief executive Terry Semel stepped down in June, Yang has been faced with the prospect of making changes at a company seen by some as a likely purchase for rival Microsoft in an attempt to stop Google's nearly unchecked growth. Yahoo Stock Down 7% in 2007, Google's Up 54% November comScore figures show that Yahoo's visitor traffic increased by five percent annually compared to 2006, while Mountain View, California-based Google showed gains of 21 percent, however Yahoo also held the top spot in terms of the total amount of time people spend at a portal and the total number of Web pages consumers view. The trend for Yahoo is one of decline, with overall figures showing its total number of minutes figure dropping by 13 percent for the month, while an eight percent decrease was seen in total pages viewed. The biggest November percentage gains in total time spent online belonged decisively to Google, which saw a 116 percent increase from 2006. Time spent online also declined for the portals operated by Microsoft and Time Warner's AOL, each showing a drop of five percent from last year, which some industry analysts see as a sign that more people may be starting their online interaction at search engines rather than Web portals. Related Links:
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