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Microsoft Gains in Q3 Paid Search; Google Mixed, Yahoo Steady

Microsoft’s Live Search posted an impressive 19.3% increase in active first page advertisers in Q3 2008, while Google had a mixed quarter and Yahoo held steady, according AdGooroo’s Q3 Search Advertising report (pdf).

Live Search had the largest quarterly increase since Adgooroo’s measurement began in April 2007. In the past year, it has grown its active advertiser base by almost 32%, putting it in the strongest position since its inception.

In contrast, Google had a mixed quarter. Adgooroo recorded a 3% rise in active advertisers overall, though much of this increase may be the result of an algorithm change released September 16.

While it appears that the Google was taking steps to increase coverage through July, ad coverage dropped to its lowest levels in August and September. On the positive side, the algorithm change slightly reduces low-priced ad inventory and favors big-budget advertisers, which could foreshadow good news for Q4, AdGooroo said.

Google retains the largest share of advertisers of any search engine.

Yahoo, for its part, appears to be staying the course while it waits for the US government to approve its ad-sharing deal with Google, the report said. Yahoo posted a 2.5% decrease in active first-page advertisers, but there were no significant changes in other metrics.

Yahoo maintained the second-highest advertiser count as compared with 12 months ago.