US search advertising spending fell 8% in Q4 ’08, according to firm Efficient Frontier.

Reductions among smaller companies that spend less than $50,000 on search ads per month more profound, cut their spending by 23%. Advertisers that spend more than $200,000 on search monthly cut spending by 9%. Those that spend between $50,000 and $200,000 held flat

• Search ad spending among financial advertisers fell 20%
• Automotive spending dropped 15%
• Retail advertisers increased spending 9% in Q4

“Even though the SEM company says US search ad spending fell by 8% in Q4 ’08, reported earnings from the major search companies counter that data”, David Hallerman, eMarketer senior analyst.

• Google’s US net search revenues in Q4 up by 17% year over year.
• Yahoo! reported US search revenues in Q4 up by 18%.