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If you own 60% of the market and your number 2 competitor's market share is merely one-third of what you have, that, my friend, is how you crush the competition. YouTube and parent company Google are exceptional examples of companies trashing competitors in their respective fields.

Most of us know that Google is currently the leading search engine worldwide while YouTube remains as the #1 online video sharing site. But not all of us know that both Google and YouTube command a 60% share of their respective markets while their #2 competitors content themselves with having only a third of these market shares.

According to competitive intelligence firm Hitwise, 64.35% of online searches in the US are done using Google as of July 2007. Yahoo! Search is number two (with 22.13%) but does not even come close to Google's numbers. (See Fig. 1)

Fig. 1. Percentage of US Searches Among Leading Search Engine Providers

Leading Search Engine Providers

Meanwhile, YouTube continues to dominate the online video sharing market. As of May 2007, 60.02% of all US visits to a video site are in YouTube, while #2 MySpace Videos owning only 16.08% of these visits. (See Fig. 1)

Fig. 2. Top 10 Video Sites by Market Share of US Visits to Custom Category, May 2007

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Top 10 Video Sites

In Alexa, although Yahoo ranks as the #1 most visited site in the world, only 3% of its visitors use Yahoo! Search (search.yahoo.com). On the other hand, 63% of Google visitors drop by Google.com and most probably conduct search there.

YouTube easily trumps other video sites in terms of traffic reach and page views as seen in the graph below.

Fig. 3. Site Pageviews of YouTube vs. Competitor Video Sites, March-August 2007

YouTube vs. Other Video Sites 

Without a doubt, Google and YouTube are the kings in their respective fields. But can they retain their crowns given that Google recently missed earnings expectations and YouTube users threatening a boycott?

We'll watch. 

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