Yahoo search ads grew in quarter vs. Google: report

By Eric Auchard

SAN FRANCISCO (Reuters) - New industry data out on Tuesday showed Yahoo Inc may have started gaining share in the Web search ad market against Google Inc even as Google's share of search audience inched up.

One study by RBC Capital using data on ad-buying trends from Web search marketing firm SearchIgnite shows Yahoo outpacing Google in spending on search advertising, ad viewership and click-through rates during the first quarter.

Meanwhile, a report from research firm comScore showed Google gaining share against Yahoo in the overall Web search market in March, but gave no insight into how Google was doing converting Web searchers into ad viewers.

Yahoo's first-quarter share of search spending by selected advertisers rose to 23 percent of the market, up from historic levels of 18 percent to 19 percent, SearchIgnite said.

Google's dominant search advertising share dipped to 71.1 percent from 74.9 percent the previous quarter, it said.

"Yahoo increased its share of wallet meaningfully for the first time in several quarters," RBC analyst Ross Sandler said in a note to investors, referring to the SearchIgnite data.

Shares of Yahoo gained 36 cents, or 1.3 percent, to $28.16. Google dipped $1.15 to $450.51.

Google is set to report quarterly results on Thursday as investors debate whether the company's explosive growth in search advertising has begun being hobbled by a slowing economy. Yahoo reports quarterly results next Tuesday.