Rival search engine/online ad companies Google and Yahoo last week revealed their financial results for the second quarter of the year, with both disappointing investors with their performances.

Yahoo was the first to unveil its results, and the company reported a decline in its display ad income, as well as adjusting its full year forecast downwards, from $4.95bn-$5.45bn to $4.89bn-$5.19bn.

Its revenues increased by 11% to $1.24bn (£605m), but profits dropped by 11% to $161m (£80.5m) for the three month period.

New Yahoo CEO Jerry Yang said that he would be spending the next 100 days mapping out a new strategic plan for the company, which has lost its led in the search market to Google overt the last couple of years.

Analysts were expecting Google to show much faster revenue growth than its rivals, but its announced results fell just short of expectations, with the company’s share price falling as a result.

The company’s revenue rose 58% to $3.87bn (£1.88bn), but growth in profit was lower than expected, increasing by 28% to $925m (£450m).

In the UK, Google made $600m (£292m), which represents 15% of  the company’s total turnover in the quarter, compared with 15% in the same period last year, and 16% for the first quarter this year.

Google has spent heavily in the last few months, acquiring eight different companies, with the DoubleClick deal, still under scrutiny in the US, being the largest at $3.1bn (£1.5bn).