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Silicon Alley Insider is reporting that Yahoo’s search ad share dropped by a whopping 36 percent in the 4th quarter of last year.

The numbers come from AdGooroo, which claims Yahoo’s search ad share was 30.4 percent in September, then dropped down to 23.7 percent in October, then further still to 20.4 percent in November, and finally to 19.4 percent in December. Microsoft, on the other hand, grew from 12 percent in October to 16.4 percent in December.

They also state that that Yahoo ads are paying much less then Google‘s. This means that PPC arbitragers are buying traffic from Yahoo and cashing that traffic in on Google ads.

Dark times over at Yahoo. Dark times.

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