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Survey Says Google Users Have Most Internet Experience

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A study done by Standard & Poor’s Equity Research Services that was conducted on search engines has released its results. The survey’s findings indicate that 48% of search engine users say they use Google most overall, compared to 20% for Yahoo, 14% for MSN and 7% for AOL.

However it was not all good news for Google. According to the survey, Google could face challenges as it grows beyond search into the portal style of web presence. The survey, commissioned by Standard & Poor’s Equity Research Services, was conducted by InsightExpress, an online market research firm.

The survey found that search engine user satisfaction is quite high, with most users (83%) saying they are extremely pleased with the search engines they use, and two-thirds of users (67%) have been using their search engines of choice for more than two years.

Google was ranked the highest used because of the relevance and accuracy of its results. However, more than six out of 10 Google users (63%) indicated they would switch search engines if a better service came along.

The development of Gmail may not be having the desired affect that Google was expecting. The survey stated one out of every four search engine users would be very likely (8%) or somewhat likely (15%) to sign up for and regularly use a new personal e-mail service if it offered unlimited storage and the capacity to search old e-mails, and would search e-mails to target advertising to users.

Scott Kessler, Internet Software & Services Equity Analyst, Standard & Poor’s Equity Research Services and author of the report, states,

“For 2004, we project Google’s net revenues will nearly double, but its margins will narrow somewhat due to increased investment by the company. At the same time, we believe Google and its shares will also face risks relating to commoditization of the company’s offerings, difficulties related to its introduction of new products and services, and competition from the likes of Yahoo and Microsoft.”

“Google also has a limited operating history, expects to invest heavily in new initiatives, is employing a largely untested price to process and distribute its shares. Based on comparisons to what we consider the company’s closest peer, our preliminary estimate for Google’s market value is $33 billion to $40 billion.”

This finished portion represents the first portion of the survey. The second part is expected to be complete by August, 2004.

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Survey Says Google Users Have Most Internet Experience
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