Google is the dominant presence in terms of search online ads. This conclusion was presented by Brad Smith, Senior Vice President, General Counsel and Corporate Secretary, Microsoft, during his appearance before the Senate Subcommittee on Antitrust, Competition Policy and Consumer Rights, in an attempt to block Google's acquisition of DoubleClick. Microsoft is not shy to position itself as the underdog of the online advertising market, although this is not a position the company is comfortable with. However, it is an illustration of reality and something that Microsoft is struggling with on a daily basis.

Smith also estimated the online advertising business at a level of $27 billion, but this figure is estimated to double in the next four years, jumping to $54 billion. And Google has the biggest piece of the online advertising pie with over 70% of all global spending on search-based advertising being managed via the Mountain View's company AdWords service. Google is turning in a healthy profit from online advertising, and in fact, this and not search, is the actual business of the company.

Microsoft on the other hand is at the opposite pole, managing to lose money through its Online Services Business. The Redmond company is well known for its general business strategy to throw money at a problem, in order to get it solved. And it takes quite a sum to even attempt to dislodge Google from the top of the online advertising market. In fact, Microsoft is losing no less than $1 billion per year with the combined results from MSN and Live Search, according to Henry Blodget.

Just two years ago, MSN was a profitable business for Microsoft. The portal reeked in modest revenue compared to mediocre results, but it was on the plus. Since the introduction of Windows Live and Live Search in 2005 - 2006, Microsoft's Online Services Business has been nothing more than a bottomless money pit.

It is obvious that the Redmond company is investing heavily in Live Search and it is at a crossroads, aiming to gear up as much as possible against Google, before the Mountain View search giant completely crushes the market under its monopoly. But Microsoft is just throwing money out the window. By comparison Google has a profit of no less than $4.4 billion at a revenue of $16 billion, while Yahoo reeks in $750 million on $7 billion revenue.