Google extends lead as source of clicks to online retail sites

This week’s changes in top management at Yahoo focused attention on the company’s weakening position in search versus its chief rival Google. Two new reports from Internet research firms show that Google is extending its lead in search and as a source of visitors to online retail sites. But a rumored deal that would bring Yahoo the social networking site MySpace could close the gap.

Nielsen/NetRatings reports that Google accounted for 56.3% of U.S. searches in May, compared with 21.5% for Yahoo. More ominously, the just over 4 billion Google searches last month represented 44.9% growth over May 2006, while Yahoo grew only 18.6% to 1.5 billion searches.

Hitwise data showed a similar trend. Google accounted for 15.6% of traffic to U.S. online shopping and classifieds sites in May, up 8.7% from a year earlier. Yahoo, meanwhile, accounted for 4.6% of traffic to e-retailer sites in May, down 6% from 4.9% the prior year.

However, Yahoo could make up ground if it follows through on a rumored deal to acquire social networking site MySpace. MySpace accounted for 3.15% of traffic to online retail sites in May, up 86% from 1.69% in May 2006, Hitwise says.

Overall, search engines provided just under 25% of the traffic to online retail and classifieds sites in May, up 0.7% from a year earlier, Hitwise says.