BusinessWeek has a detailed article on mobile search arguing Internet search giants – such as Google and MSN – are not positioned to automatically take the lead in the mobile space. Mobile Internet is very different from fixed Internet (users want to find and not browse), so retrofitting Web search might not be the best approach. The article also has some interesting stats courtesy of the mobile research firm M:Metrics, which estimates Google is the early front-runner in the U.S. (Google had about 4.75 million U.S. subscribers in the fourth quarter of 2006). Yahoo runs a close second (roughly 1.1 million fewer users than Google), and Microsoft’s MSN Mobile comes in third, with under a million subscribers.

But are Google & Co. the ones to watch when it comes to mobile search? There’s a good chance the attention on brand name search giants is misplaced – particularly in view of the raft of recent deals involving white label providers and major operators. In fact, M:Metrics doesn’t even track other search engine providers such as Medio Systems (which has most likely built up a sizeable user base through its partnerships with Verizon Wireless, T-Mobile and Amp’d Mobile). The article also quotes Brian Lent, Medio CEO, who claims his search engine has more users than Google. “What we see is that someone who goes to Google search will often switch and use our product.”

But the real battle brewing is not about market share; it’s about rev share agreements. On the Internet the company providing connectivity goes out empty-handed. Not so in the mobile Internet, where operators want their share– and may join forces with white label search engine providers to get it. “Ironically,” the article concludes “it is this revenue sharing arrangement that may give start-ups such as Medio and 4INFO their biggest edge over Google and Yahoo, which have broader advertiser networks and more relationships with marketers.” When it comes to mobile search the winners may be the companies that give operators the biggest slice of the pie – not the providers who threaten to eat their lunch.
Related:Amp’d Mobile Partners with Medio Systems For Mobile Search
Mobile Operators Planning Joint Mobile Search Rival To Google/Yahoo?
T-Mobile Upgrades Mobile Search, Teams Up With Medio Systems
Mobile Search: So, Whose Deck Is It Anyway?