Microsoft's online ad revenue grew 19 percent during its most recent fiscal quarter, thanks in large part to ad sales on its Bing search engine, ClickZ reports.
Microsoft has made search one of its top online priorities and Bing has largely been a success. Since launching 11 months ago, the search engine has slowly but steadily increased its share of the U.S. search market. In March, Bing accounted for 9.6 percent of searches in the U.S., according to Hitwise data. Overall, Micrsoft's income grew 35 percent in the quarter, thanks in large part to Windows 7 sales.
Microsoft expects its search ad sales to continue to grow through a partnership with Yahoo. In that deal, Microsoft will manage the ad sales on both Bing and the Yahoo search engine. Yahoo has essentially ceded the search market to Microsoft and will focus on its display ad sales. Coincidentally, strong display sales gave Yahoo a strong quarter as well.