Though the economy is faltering due in large part to the subprime lending debacle, Internet advertising dollars continue to rise. In the past couple of weeks, both Google and Yahoo have reported better than expected earnings.

For instance, Google has announced that despite losing a little market share to Yahoo, that the world’s largest search company revenues of $5.19 billion for the quarter, up 42-percent from the same time last year, and 7-percent better than the preceding quarter.

Yahoo, on the other hand posted a 57.6-percent jump in online ad spending over the same time last year. Yahoo’s market share has also jumped 4.6-percent while Google’s has fallen 4.1-percent over last year. Analysts are saying the rise in Yahoo is due to its Panama platform released last year.

Later today, Yahoo is expected to report its first quarter earnings that will likely affect the Microsoft takeover bid price. If the earnings are high enough, the bid may be thwarted altogether or at least Yahoo will receive prime dollar for its properties.

But, no matter what happens, one thing is for sure. The soft economy in the U. S. has not hampered the hard dollar on the Internet and one can expect this trend to continue for some time to come.

Filed under: News