Yahoo Gains on Google

5:30 PM -- All the talk surrounding Yahoo Inc. (Nasdaq: YHOO) lately has been about Microsoft Corp. (Nasdaq: MSFT) trying to rescue the beleaguered search engine with its $44.6 billion bid. But Yahoo actually gained market share against its rival Google (Nasdaq: GOOG) in the all important pay-per-click advertising category in the most recent quarter.

According to a study released yesterday by SearchIgnite, Yahoo's revenue on paid clicks rose to a 24.2 percent market share in the first quarter of 2008, up from 19.6 percent in the same quarter a year ago. Google on the other hand, slipped from 74.5 percent to 70.4 percent.

Revenues from advertisers who pay search engines for every time a user clicks on their ad make up the majority of Yahoo and Google's revenues. Could this be used as leverage for Yahoo as it tries to squeeze a higher bid out of Microsoft? We could find out very soon as Yahoo could make a decision on its strategic alternatives before the end of this week. (See Yahoo Decision Coming Next Week?)

— Raymond McConville, Reporter, Light Reading

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