Nancy Hill, the president of the American Association of Advertising Agencies (AAAA), recently sent out a letter in support of the Bing & Yahoo! search deal. Although the letter is short and concise, it highlights the fact that Google is a dominant player in the Internet advertising industry since it controls the main access point [...]

Since Bing’s debut in July, it continues to gain market share slowly. In August, Bing gained 0.4% of the search market, to achieve 9.3% of total search query volumes in the U.S. In the same month, Google’s market shared dropped by one point to 64.6% while Yahoo’s market share remained unchanged at 19.3%.

In comparison to other major search engines, Bing showed a steady growth of nearly a half-point market share gain every month for the past three months. Bing grew faster than Google for the first time in August, with a 31.9% annual increase in search queries compared to 21.6% growth for Google and 16.8% for Yahoo.

It is worthwhile to mention that while Bing might be growing faster than Google, Google still dominates the U.S. search market with 64.6% and the combine market share of Yahoo! & Bing is only 28.6%.

From analyzing the data from Chitika, it seems that Google is still the preferred search engine even though Bing & previously MSN Live is set as the default search engine for Internet Explorer. Even with the Microsoft & Yahoo! search alliance, Bing will only have a total of 22% of all searches from Internet Explorer in comparison to Google’s 74.2% Internet Explorer web search.

A closer examination at the search data for Google, Yahoo!, and Microsoft Bing reveals that Google dominates 65% of the U.S. search market. While at the same time, Yahoo and Microsoft combined sites produce 28% of the searches in the U.S. In terms of overall search users, Yahoo! and Microsoft has a 73.3% searcher penetration while Google has a 84.0% daily searcher penetration. Google on average generates 54.5 searches per month per internet user while Yahoo! and Microsoft produces 26.9 searches per person per month.

Chitika analyzed 163,211,927 searches – a sample of the Chitika network’s search data from July 30th through August 16th – based on operating systems.

Chitika Network released a report that Bing users are more likely to click an ad on your site than Google or Yahoo users.

We took a closer look at the details for the 10-year search deal between Microsoft & Yahoo!, and we discovered that as part of the agreement at least 400 Yahoo! employees will transition to Microsoft. An additional 150 Yahoo! employees will assist with providing the “transition services” between Microsoft and Yahoo!.

Microsoft agrees to pay Yahoo! $150 million to cover the costs involved in the technology transition process. Microsoft will also make a $50 million annual payment to Yahoo! during the first three years to cover other technology transition costs.

Erick Schonfeld (TechCrunch co-editor), Steven Levy (Wired Magazine), and Nick Wingfield (The Wall Street Journal) discusses the Microsoft/Yahoo search deal with Charlie Rose.

Microsoft CEO Steve Ballmer discusses the search agreement with Yahoo! and what it will mean to customers, advertisers and the industry. Yahoo! CEO Carol Bartz discusses the agreement and what it means to Yahoo! and its customers.

Earlier today, a new search deal between Microsoft and Yahoo! was confirmed with the following press release. Here is the press release and the summary.

As reported in the Toronto Star and several other websites, Bing has had a decent June after capturing 8.4% of U.S. Internet searches…