Google profit up as ad spending rises

SAN FRANCISCO — Google Inc., owner of the world’s most popular search engine, said third-quarter profit increased as businesses spent more on advertising for online consumers.

Net income rose 32 percent to $2.17 billion, or $6.72 a share, from $1.64 billion, or $5.13, a year earlier, Google said. Profit excluding some items was $7.64 a share, compared with the $6.68 average of projections compiled by Bloomberg.

Google is benefiting from increased spending on search-based ads as it pursues opportunities in mobile communications and display advertising. Online spending is expected to account for 15 percent of total US advertising this year, up from 12 percent in 2008, according to EMarketer Inc. in New York.

After three months of losses, Google boosted its US search-market share in September to 66.1 percent from 65.4 percent a month earlier, according to researcher ComScore Inc. The gains came after Google unveiled its Instant service, which gives users search results as they type in queries.

Yahoo Inc. fell to 16.7 percent from 17.4 percent, and third-place Microsoft Corp. edged up to 11.2 percent from 11.1 percent. Microsoft is merging its search operations with Yahoo’s to challenge Google’s dominance.

Search-based advertising is the biggest piece of the US Internet market, making up almost 49 percent of total online ad spending in 2010, EMarketer said.