A new report just released by Efficient Frontier has shown that Google continues in its dominance over Yahoo! and MSN with Google now holding 77.4% of the search ad market.
For every new dollar spent on search ads in 2008 over 2007, Google received $1.10; while Yahoo lost $0.09 and Microsoft lost $0.01.
Although Google’s dominance is very strong in the US, this isn’t the case across all countries worldwide. In particular, Google is behind in China, South Korea, Russia and Japan. Figures from the report show Google having barely 50% of the Japanese market, with the other half belonging to Yahoo.
So, for the US market, this is great news for Google. However, this dominance could come back to bite them as they are currently trying to win US government support for a plan to have Yahoo! carry some of Google’s search ads. With stats like this we will no doubt hear noise from Microsoft in terms of why a Google-Yahoo! deal would be bad for competition.