Microsoft reported search advertising revenue increased 8 percent year over year, growing by $124 million, in its quarterly earnings report released Thursday. Taking traffic acquisition costs (TAC) out of the equation, search advertising revenue was up 10 percent year over year in the fourth quarter of its fiscal year, which ended June 30, 2017. The company said the bump in search revenue was the result of higher search volume and improved revenue per search on Bing. That’s been the growth message for a year now, a switch after noting the “continued benefit from Windows 10 usage” for several quarters. However, Bing’s ad growth rate has now been stagnant for several quarters. On the Q2 FY17 earnings call in January 2017, Microsoft CFO Amy Hood reminded investors that “total search revenue growth will slow now that we’ve passed the one year anniversary of our Yahoo deal and the associated change in revenue recognition.” (Bolding added.) The two companies reworked their rocky search partnership in April Search Engine Land Source
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