According to the latest data from comScore, Google's (Nasdaq: GOOG) share of the search market fell four-tenths of a percentage point in August just as Bing partners Microsoft (Nasdaq: MSFT) and Yahoo! (Nasdaq: YHOO) gained share. Thus, the headline: Google is shrinking.

Except that it isn't true. Let's take a closer look at Google's average search market share for the first and second quarters of 2010, and then compare the findings with the average revenue growth of the top three search contenders:

Search Sites

Q1 2010

Q2 2010

% Point Change

Google Sites

65.3%

63.6%

(1.7)

Yahoo! Sites

16.9%

18.3%

1.4

Microsoft Sites

11.5%

12.2%

0.7

Ask Network

3.8%

3.6%

(0.2)

AOL Network

2.5%

2.3%

(0.2)

Source: comScore.

Company

Q1 2010

(in billions)

Q2 2010

(in billions)

Sequential Change

Microsoft

$14.503

$16.039

10.59%

Google

$6.775

$6.82

0.66%

Yahoo!

$1.597

$1.601

0.28%

Source: Capital IQ, a division of Standard & Poor's.

Google isn't shrinking it all. Sure, Bing's success seems to have created a tailwind for Microsoft, but that could just as easily be due to Windows 7.

What's important here is that The Big G's search market share doesn't correlate with revenue growth as neatly as the bears would like to believe. In simpler terms: Google isn't as dependent on search share as international peer Baidu (Nasdaq: BIDU) is.

Google has Docs, Gmail, Apps, Android, Maps, and several other hit products that help drive revenue. The Big G's Big White Search Box is a small part of its story.

Now it's your turn to weigh in. Do search market share statistics matter? Is Google well enough diversified outside search? Share your thoughts in the comments box below, and if you're interested in Google, click here to add it to your Foolish watchlist.

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Fool contributor Tim Beyers is a member of the Rule Breakers stock-picking team. He owned shares of Google at the time of publication. Check out Tim's portfolio holdings and Foolish writings, or connect with him on Twitter as @milehighfool. You can also get his insights delivered directly to your RSS reader. The Motley Fool owns shares of Google and Microsoft and is also on Twitter as @TheMotleyFool. All your base are belong to the Fool's disclosure policy!