Google had a good fourth quarter, with revenue up 18 % year-on-year to $5.70 billion. In Q3 2008 year-on-year revenue growth was 31 % and for Q4 2007 year-on-year revenue growth was 51 %. While revenue still grew at a brisk pace, growth is slowing quite quickly. Operating margins and profits were up, but impairment charges to the investments in AOL and Clearwire dragged down net profits. It seems like Google has been tightening up their operations in Q4 and for 2008 as a whole, with cashflow improving faster than revenue.
Efficient Frontiers data that said search spend was down 8 % obviously wasn't representative for Google.