Adam Ostrow over at Mashable covers Google’s recently released financials and marketshare data.

A few highlights from his piece:

“In search, Google maintained 56.6% share, handily beating Yahoo (17.7%) and Windows Live Search (13.8).”

“Other Google properties showed very impressive growth – Picasa up 197%, YouTube 81%, and Blogger 52%. “

So it’s clear that Google is still the 800 pound gorilla. Not a surprise. But I had no idea that Google had that much of a lead over Yahoo and Windows Live. And from the second stat we see that people are loving the web medium to share Pictures and Video. The fact that Blogger is lagging the other two services raises an interesting question for me. Does this show room for growth and innovation in the individual blog space? Is this where Google can go head-to-head with MySpace and Facebook?

Currently, there is very little interaction among the blogs within Blogger. I can’t easily let the world know that I have 200 friends with blogs on Blogger, for example. How could Blogger be more social? Think “poke,” “minifeeds,” “fun walls,” and embedded mp3 players. Maybe they are working in their Google Labs right now trying to find a way to “Gooogle-fy” what’s already been done; to make it more compelling for the Google audience.

Maybe it won’t be Blogger at all. Maybe it will be a super-tool that will sit on top of Picasa, YouTube, and Blogger- and integrate all three into something new. Something social. Something web2.0. Something special….

To compete with the thought of a Microsoft/Yahoo offering, I think Google will have to come up with something big that breaks new ground.