Apparently Microsoft is buying placement on HP PC’s in order to gain share? Do you think this tactic still works?

Microsoft, HP will be search partners

By Benjamin J. Romano

Seattle Times technology reporter

The next piece of Microsoft’s full-speed-ahead charge for Internet search share is an exclusive distribution deal with Hewlett-Packard.

HP’s consumer PCs sold in North America will have a custom search toolbar and Internet Explorer will default to Microsoft’s Live Search engine beginning in January, Microsoft plans to announce today.

This arrangement with the No. 2 PC seller in the U.S. is the largest search-distribution deal yet for Microsoft, which is struggling to gain ground on Google and Yahoo.

With the deal, Microsoft’s Live Search will be positioned at a valuable entry point to the Internet for millions of consumers. It also displaces Yahoo, the erstwhile acquisition target and possible Internet search partner that landed a similar arrangement with HP in 2006.Here’s the full article: Thanks Tim

http://seattletimes.nwsource.com/html/microsoft/2004451809_btlivesearch02.html

What do you folks think about this? I like this quote, potentially taken out of context

Microsoft Chief Executive Steve Ballmer said the deal would transform its money-losing Internet division, which it sees as critical to growth, into a profitable pillar of its business.

“We have been losing money. Our plan here would be to not lose money in the future,” he said on a conference call

Having a hard time keeping the market share %’s (between Google, Yahoo, MSN, and others) straight? So are we. As with many things in this industry, the answer to the question depends on who you ask.

Efficient Frontier analyzed their own client data, and has recently published Q4 2007 US Search spend share %’s

• Google: 76.6%
• Yahoo: 17.9%
• MSN: <5.5%

see the rest of the story here.

HitWise also recently published their December 2007 US Search numbers:

• Google: 65.98%
• Yahoo: 20.88%
• MSN: 7.04%
• Ask.com: 4.14%
• Remaining 49 engines: 1.96%

See the full report here.

Also, from a previous post, Nielsen Online shows the US Search Market as:

• Google: 56.3%
• Yahoo: 17.7%
• MSFT: 13.8%
• Others: 12.2%