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Google gets $1.10 of every search dollar, 77% of U.S. search spend

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Mountain View, Calif.—For every dollar spent on search advertising in the second quarter versus the same period last year, Google received $1.10, while Yahoo lost $0.09 and Microsoft Corp.’s Microsoft Live Search lost $0.01, according to Efficient Frontier, an SEM technology and services company, in its “U.S. Search Engine Performance Report: Q2 2008” released on Thursday.

Google accounted for 77.4% of total search engine spending in the second quarter, an increase of two percentage points compared with the second quarter of 2007. Yahoo lost two percentage points of search engine share in that period, accounting for 17.8% of total spend, and Microsoft Live Search’s share remained stable at 4.8% of search engine spending.

Among other findings, Google’s average cost-per-click (CPC) rates increased by 13.8%, while CPCs for Microsoft Live Search increased 5.6% and declined 7.3% on Yahoo. ROI improved on all three search engines, with Microsoft Live Search improving 25%; Yahoo Search, 13%; and Google, 3%.

—Carol Krol

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