Google Still Heads, Shoulders (Knees and Toes) above Search/Advertising Competition

Despite the apparent impressive resurgence of Microsoft as a search engine player, the company has an enormous task ahead as it aims to compete head on with Google in the search engine market.

Between September and October, Google’s share of U.S. core searches rose 0.5% to 65.4%, far outstripping its nearest competitors Yahoo! and Bing.

That said, Bing also raised its share by 0.5% but still only governs 9.9% of the entire market.

What’s frightening, at least for Yahoo, Bing and Co. is that analysts don’t see any sign of Google’s dominance dwindling over the year ahead, particular in the ad revenue search market where Google makes a large proportion of its income.

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An analyst from UBS told the National Post:

“Due to Google’s dominant position in the U.S. search market, we expect the company to take a disproportionate share of search ad spend in the fourth quarter and 2010,”

As Google and Microsoft moved ahead in the rankings, Yahoo is once again the loser, as it suffered a 0.8% market share drop to 18%, still higher than Bing mind you.

For Yahoo however, their search engine deal which essentially hands over the reigns to Microsoft is a light at the end of the tunnel and should could be confirmed by the end of the week if All Things Digital’s Kara Swisher’s sources are correct.