Good news for Microsoft (MSFT). Clearly, Bing’s traffic is not yet leveling out. That said, it should be noted that according to comScore (SCOR), whose search data are most highly regarded by Wall Street, Bing never lost search market share in the U.S.

Troubling news for Microsoft (MSFT). Hitwise’s latest numbers are the second set of metrics from a Web analytics firm showing Bing’s market share in decline. Last week, StatCounter claimed Bing’s share of the U.S. search market in September had slipped to 8.5 percent from 9.6 percent in August.

As I noted then, while a month of slight decline might herald the beginning of a trend, it certainly doesn’t guarantee one–especially in search, where surges and lulls in market share are quite common. That said, this is the second set of data suggesting that Bing’s traffic may be leveling out. Whether this reflects the end of the big Bing marketing campaign or falling consumer interest remains to be seen.

Incidentally, Microsoft’s new search partner, Yahoo (YHOO), also saw its search share slip for the month, according to Hitwise. Yahoo claimed 16.96 percent in August. In September, it claimed 16.38 percent. Meanwhile, Google (GOOG) took 71.08 percent share for the month, up from 70.24 percent in August.

New metrics from Web analytics firm StatCounter show Bing’s share of the U.S. search market in September falling to 8.5 percent from 9.6 percent in August. Its share of the global market declined as well, slipping to 3.25 percent from 3.58 percent.

Microsoft’s (MSFT) new search partner, Yahoo (YHOO), also suffered a decline. Its market share fell to 9.4 percent from 10.50 percent in the U.S. and to 4.37 percent from 4.84 abroad. Meanwhile, Google’s (GOOG) September share rose to 80 percent from 77.8 percent in the U.S. and to 90.54 percent from 90 percent globally. (See chart below; click to enlarge.)

“The trend has been downwards for Bing since mid August,” StatCounter CEO Aodhan Cullen said in a statement. “The wheels haven’t fallen off but the underlying trend must be a little worrying for Microsoft.”

Mmm, I doubt it. While a month of slight decline might herald the beginning of a trend, it certainly doesn’t guarantee one, especially in search, where surges and declines in market share are quite common. Furthermore, we haven’t yet seen search metrics from Nielsen, comScore (SCOR), and Hitwise. And all three showed Bing gaining share in August, a month that Statcounter claimed shows the beginning of a downward trend.

• Week ending June 6: 3.43 percent
• Week ending June 13: 4.57 percent
• Week ending June 20: 5.35 percent
• Week ending June 27: 6.63 percent

“Looking at the weekly percentage of U.S. searches for Bing, the search engine has grown at an average weekly rate of 25 percent for the month of June 2009,” Hitwise explains. “Adding in Live.com and MSN Search along with Bing, the combined search engines have grown at an average of 16 percent during June 2009. Bing grew faster than the three other prominent search engines for the month.”

Impressive. But sadly, not enough for Microsoft (MSFT) to make real headway. Because Bing actually ended up losing market share during June, slipping to 5.25 percent from the 5.64 percent it had in May (click on chart below). Meanwhile, Google (GOOG) gained share, rising to 74.04 percent from 73.66 percent in May. And Yahoo (YHOO) gained as well, starting out the month with a 15.55 percent share and ending it with 16.19 percent.

Early gains do not guarantee a long-term increase in search market share, and thanks to its experience with Live Search and Live Search Cashback, Microsoft (MSFT) knows this better than anyone. That said, Redmond’s new search engine, Bing, does seem to be making some solid progress.

For example, a comScore (SCOR) report said earlier this week that Microsoft’s share of the search market has risen to 11.1 percent from 9.1 percent since Bing’s debut.

And now market researcher Hitwise reports that Bing is among the top 20 most popular Web sites in the U.S. and among the top 10 in Canada (click on chart below).

“In the U.S., Bing ranked 17th among all Web sites out of over 450,000 Web sites, up from 5120 the week before the official launch when the Web site was merely a placeholder,” Heather Dougherty, Director of Research at Hitwise, wrote in a blog post. “Within the Search Engines category, Bing ranked 4th out of the search engines tracked by Hitwise…In Canada, Bing hit the top 10 among all Web sites during the first week of launch and captured 1% of all Canadian Internet visits last week. Bing also ranked 3rd last week in terms of the market share of visits within the Search Engines category behind Google Canada and Google.”

Not bad. Of course, early successes like these are driven as much by marketing as by technological prowess and positive user experience. And right now, Bing’s got some major marketing dollars behind it. But those will only last for so long.

And as Google (GOOG) CEO Eric Schmidt likes to point out, you really can’t expect to buy your way into the search market. “You don’t just buy it with ads,” Schmidt told Fox Business earlier this week. “You earn it, and you earn it customer by customer, search by search, answer by answer.”

According to new data from Hitwise, traffic to online classified advertising sites increased 84 percent in February from a year ago. The sector has seen positive growth in all but one month over the last three years. And while hardly the only player in the game, the single biggest beneficiary of the trend is Craigslist. According to Hitwise, of the top 100 classified ad Web sites, all but 3 were localized versions of Craigslist.

And the company’s domination is growing: a year ago, 12 of the top 100 were not related to Craigslist.

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“The Internet is a great phenomena. I don’t see how the emergence of more information content on a network can be a bad thing for the personal computer industry. Will it cause less personal computers to sell? I think quite the opposite. Less copies of Flight Simulator or Encarta?”

– Microsoft chairman Bill Gates, 1994

In January, Wikipedia claimed nearly 97 percent of the visits that Web surfers in the United States made to online encyclopedias, according to research outfit Hitwise. MSN Encarta received 1.27 percent. Little wonder, then, that Microsoft (MSFT) is discontinuing it. The company announced Monday that it would stop selling Encarta software by June and would shut down the encyclopedia’s MSN Web sites on Oct. 31. “Encarta has been a popular product around the world for many years,” Microsoft said in a statement. However, the category of traditional encyclopedias and reference material has changed. People today seek and consume information in considerably different ways than in years past. As part of Microsoft’s goal to deliver the most effective and engaging resources for today’s consumer, it has made the decision to exit the Encarta business.”

Translation: Wikipedia ate our lunch–and our breakfast and dinner too. For evidence, one need look no further than Wikipedia itself, which updated its Encarta entry with the following passage within an hour of Microsoft’s announcement.

“Microsoft announced in March 2009 that they will cease to sell Microsoft Student and all editions of Encarta Premium software products worldwide by June 2009, citing changes in the way people seek information and in the traditional encyclopedia and reference material market as the key reasons behind the termination….Additionally, MSN Encarta web sites will be discontinued by October 31, 2009, with the exception of Encarta Japan which will be discontinued on December 31, 2009.”

Turns out that many of them were doing the same thing–the Facebook part, that is. Web traffic-watcher Hitwise says Mark Zuckerberg’s site accounted for 1.93 percent of all U.S. Internet visits on New Year’s Eve. That’s up 75 percent from a year ago, when 1.11 percent of you checked in at the site at some point in the day.

But New Year’s wasn’t Facebook’s busiest day last month. That distinction belongs to Christmas Eve, when it set a site record of 2.18 percent of U.S. Internet visits, up from 1.42 percent in 2007.

You can draw your own conclusions about what those stats mean, or read Hitwise analyst Heather Hopkins’s theories here–she thinks snowstorms in the Northeast kept people trapped in their homes with nothing to do but post on their pals’ walls.

But I think the best explanation here is the simplest one: Contrary to predictions that Facebook would burn out as its core college audience grew tired of it, the site has continued to grow–it now claims 140 million active users worldwide. So you’re going to see records like this broken a few times a year.

So what does that mean? Nothing, really: Assuming the data are accurate, we still don’t know what people actually spent, and what they spent it on. We’re likely get a few more pieces of the puzzle today, when/if comScore (SCOR) comes out with its online commerce numbers. But the most important data are still locked away in retailers’ databases, and that stuff won’t be public for some time.

[UPDATE: ComScore says sales were up 15 percent.]

One way to tell how retailers really did: Ask somebody who sells Web advertising. An ad exec for an online publisher I spoke to yesterday told me that December sales had “stopped cold” because his clients wanted to see what their Black Friday/Cyber Monday numbers looked like before committing any more ad dollars this year.

He’s hoping for good news. As of last night, he hadn’t heard a peep.

In the meantime, here’s an array of data points from Nielsen and rival Web measurement firm Hitwise. Here are Nielsen’s top online retail destinations, ranked by unique visitors. Note the big increases at Amazon (AMZN), Best Buy (BBY) and Sears (SHLD). Why is Netflix (NFLX) considered an online retailer? Got me. (Click to enlarge)

And here’s Hitwise’s summary of Cyber Monday; note that its take on traffic seems to differ from Nielsen’s when it comes to overall visits:

• Among the top 500 Retail Web sites, the percentage of U.S. visits was down 1% on Cyber Monday 2008 compared with 2007.
• U.S. visits to Brick and Mortar store Web sites (100 total) were down 4% on Cyber Monday.
• U.S. visits to Online-only Web sites (100 total) were up 5% on on Cyber Monday.
• U.S. visits to the Comparison Shopping Web sites were down 21% on Cyber Monday.
• U.S. visits to the Catalog Web sites were down 4% on Cyber Monday.
• The top visited Retail Web site on Cyber Monday 2008 was Amazon.com, receiving 10.77% of U.S. visits among the top 500 Retail Web sites. Walmart.com was the second most visited with 8.55% of visits, followed by Target.com with 4.56%. BestBuy.com was the fourth most visited with 3.81%, and Sears.com was fifth with 2.74% of visits.
• Amazon.com’s traffic increased 21% on Cyber Monday 2008 vs. 2007. Walmart.com’s traffic increased 6%.

[Image Credit: Respres]

We see little to stop Google from reaching 70 percent market share eventually; the question, really, comes down to, ‘How long could it take?’”

– RBC Capital Markets analyst Jordan Rohan, March 2006.

No wonder the Department of Justice was going to file suit to prevent Google’s (GOOG) proposed advertising partnership with Yahoo: The company controls nearly three quarters of the search market. Research outfit Hitwise reports that Google’s share of the U.S. Internet search market rose to 71.7 percent in October from 71.16 percent in September. A nice little jump from the 64.49 share it claimed a year ago.

And what of Yahoo (YHOO) and Microsoft (MSFT)? Well, they fared about as you would expect. Yahoo’s share fell to 17.74 percent in October from 18.06 percent in September and 21.65 percent a year ago. In contrast, Microsoft’s share rose slightly to 5.4 percent, up from 5.36 percent in September.

Sadly, that’s a decline of about two percentage points year-over-year. Not even a respectable showing for an also-ran. ‘Course, that will all change if Microsoft ever gets around to acquiring Yahoo–or, at least, its search business. Together the two companies would control almost, but not quite, a quarter of the search market.

Despite their best efforts, Microsoft, Yahoo and Ask.com just can’t seem to narrow, even slightly, Google’s massive lead in online search.

Google’s (GOOG) share of the U.S. search market increased to 68.29% in May from 67.9% in April and 65.13% a year ago, according to market research firm Hitwise. Meawhile, Yahoo’s (YHOO) share fell to 19.95% from 20.28% a month ago and 20.89% a year ago. Microsoft (MSFT) didn’t fare much better. Market share for its search service fell to 5.89%, from 6.26% in April and 7.61% a year ago.

Clearly, the search wars are over–at least for the time being. If search is a natural monopoly business, then Google would appear to be its presiding monopolist.

We see little to stop Google from reaching 70% market share eventually; the question, really, comes down to, ‘How long could it take?’ “

–RBC Capital Markets analyst Jordan Rohan, March 2006

Not long at all, really.

According to new metrics from Hitwise, Google’s share of the U.S. Internet search market grew to 67.9%–a 4% increase year-over-year. Google’s growth apparently came at the expense of rivals Yahoo and Microsoft. Though it claimed the second-largest share of the search market, Yahoo (YHOO) slipped to 20.28% from the 20.73% share it held a year ago. Microsoft’s (MSFT) Live Search, ranked third behind Yahoo, fell to 6.26% from 7.77% in that same period.

Seems the two companies’ recent efforts to differentiate their search offerings from Google’s haven’t done much to boost their respective market shares. Nor will they ever if the Google juggernaut continues as it has. As Credit Suisse analyst Heath Terry once noted, search is a natural monopoly business and there’s a decent chance that over time, Google will continue to gain share until it’s claimed most of the market.

And that may happen sooner than we think. Google’s closing in on 70% market share already. “By this time next year,” Silicon Alley Insider’s Henry Blodget writes, “Google’s search business will be larger and more profitable than the most profitable and legendary monopoly in history–Microsoft Windows.”

And that may be true. It may be true as well, that with its integrated multimedia results and predictive “Search Assist” technology, Yahoo’s new “universal” search–according to Yahoo, at least–delivers faster, more relevant and engaging results than market leader Google.

But such claims to greatness don’t count for much when you’re competing with a rival that handles more than half of the Web’s search requests and rates highest in the most important search metric of all: user loyalty. And at last check, Google was fielding nearly 64% of all search queries, according to measurement outfit Hitwise. That’s nearly triple the number submitted to Yahoo (23%).

Yahoo has spent the past four years trying to trim Google’s lead in the search market while falling further and further behind it, despite improvements to its technology. And, if Yahoo’s No. 2 ranking in its own search-engine popularity index is any guide, it will spend the next four years that way as well.

“Is this (upgrade) going to be very important in terms of market share?” asked Standard & Poor’s equity analyst Scott Kessler. “I’m not so sure. But it probably will help them in terms of mind share.”

“Obviously, we have our eye on being No. 1 in search,” Vish Makhijani, Yahoo senior vice president and general manager, told The Wall Street Journal.

Of course you do. But you might want to prove you can stop losing search-market share before you go claiming you’re going to more than double it.

“We found that we were not as dependent on Google AdWords as some may have thought,” eBay spokesman Hani Durzy told AuctionBytes. “By re-allocating our marketing dollars to our other partners, such as Yahoo, AOL and MSN, we were able to increase traffic and find efficiencies that will enable us to drive more value to our sellers and partners going forward. We are now slowly turning AdWords back on, in a much more limited way than before.”

And for good reason. According to analysis from Hitwise, eBay–which has long been among Google’s largest advertisers–didn’t exactly suffer from the pullout. Total traffic to eBay actually rose during the AdWords boycott. More important, overall activity, including the total value of goods sold, also remained relatively steady. “From our point of view, it was a very successful test. We learned a lot,” Durzy said. “Turning it back on was always our intention.”

It took a few weeks, but the two companies finally resolved their differences–and then began formalizing an already mutually beneficial relationship. According to the research firm Hitwise, Photobucket receives well over 50% of its upstream traffic from MySpace. It also accounts for 73% of MySpace’s photo-related traffic. That being the case, a deal between the two was an inevitability. Said Hitwise General Manager Bill Tancer, “There’s clearly a synergy between these two sites.”