Search ad spending improves--and boosts Google shares - BusinessWeek

Hit by the economy early this year, search advertising looks to be on the mend. For the second quarter in a row, two search marketing firms say U.S. spending on text ads on Google, Yahoo, and Microsoft’s Bing improved—or at least got less bad. The results bode well in particular for runaway search ad leader Google, which reports its third-quarter earnings on Thursday.

Analysts have been saying for months that as the economy improves, search advertising is likely to return most quickly among all other forms of advertising. It’s seen as the most measurable, and it’s also easy for marketers to increase spending literally overnight because it’s largely self-service, requiring no advance commitment. But Web companies from Yahoo to countless startups also hope that an uptick in search ads eventually will open up wallets for display, video, and other online ads...