Google and Yahoo! have been involved in settlement discussions with the Department of Justice in an attempt to avoid an antitrust challenge to their proposed deal.  We know that regardless of how the proposed deal unfolds, it will have significant ramifications in the online advertising community.  In addition to the possibility of an approved or rejected deal, we could instead see a third result - a modified deal that would cap the volume of Google ads that Yahoo! could use and require more disclosure.  Additionally, in an effort to alleviate some of the DOJ’s concerns, Google is seeking testimonials in support of the deal from large advertisers.  Meanwhile, Microsoft is still interested in a Web search advertising deal with Yahoo!.

Google has also been busy on a different front.  Although Google has not disclosed much about its plans, the hiring of former chief executive of DoubleClick suggests that Google plans to expand further into the display advertising market.  Search Concepts offers both display and text advertising though our pay per click advertising services.

We have previously blogged about how the proliferation of mobile Internet use will make SEO increasingly important.  Next week, the first phone using Google’s Android software will be released.

Everyone knows that economic woes are negatively affecting the retail and service industries.  One natural reaction for business owners is to change how they spend money on marketing and advertising.  Some simply cut spending on advertising while others are redirecting their advertising focus.  Which tactic is more prudent?

Five months ago, while the economy was slowing but before it took a staggering hit, IDC predicted that “Internet advertising in the U.S. will continue to grow fast even as the current economic woes will lead to a contraction in ad spending overall.”  They also expressly stated, “Search advertising will remain the one advertising format that will garner the most revenue over the forecast period in the United States.”  Thus, while the economy slows, online marketing and advertising is one sector that is seemingly insulated from the crisis.

The reason is that internet advertising and marketing campaigns are efficient, results-driven, and reasonably priced.  For example, SEO with Search Concepts does not require a huge investment and will make a legitimate difference in your search engine marketing.  The businesses we have worked with during this crisis are seeing continued results in terms of improving web site rankings in the search engines and call to action results.

In light of the economy, will you change the focus of your advertising to the Internet?  Perhaps the better question is whether you can afford not making a free inquiry into how SEO can help your business.

When television first became commercially available in the late 1930s, it transformed the world of advertising en route to becoming the most dominant media form of promotion.  Today, however, all of that stands to change.  Online advertising is poised to become the dominant form of advertising and has turned into a $20 billion a year industry.  The reason?  Consumers, most notably younger users, are beginning to prefer the Internet to television.

Of Internet users in the 10 to 14 year old age bracket, 83 percent spend an hour or more online per day.  Only 68 percent spent as much time watching television.  Clearly, advertising online will eventually become more important than on television as that age demographic grows up and enters the core group of American consumers.  Additionally, a younger generation that is even more Internet-dependent will emerge.

The correlation to SEO is also clear.  According to a study by The PEW Internet and American Life Project, Internet users who are 18 to 29 years old search more often; are more confident about their search abilities; and rely more on search engines than any older demographic.  For example, 97 percent of Internet users under 30 express confidence in their search skills, compared to 83 percent of users who are 50 to 64 years old.

As the Internet replaces television as the leading form of advertising, is your business prepared?

Just the other day, we had a conversation about how archaic the Yahoo! home page looked.  Sure enough, Yahoo! is now testing a new and improved home page.  You can view the snapshot preview here.  One of the features that we’re excited about is the ability to sync other web based email programs such as Gmail within this new start page.  

With all the recent controversy surrounding Yahoo!, it’s good to see they are still trying to improve their resources.  What do you think about the new Yahoo! start page?

Yesterday, the Department of Justice hired one of the nation’s best antitrust litigators, Sanford Litvak, to help assess the evidence regarding the proposed deal between Google and Yahoo!.  The fact that the DOJ hired outside counsel is a strong signal that it is prepared to litigate against Google.  The DOJ has been taking depositions and issuing document subpoenas in past weeks.  Additionally, groups such as the Association of National Advertisers have contacted the DOJ recommending against the proposed deal.  Antitrust litigation would likely be narrowly focused on the proposed deal, but there is a chance that the DOJ could challenge the broader aspects of Google’s online advertising dominance.

Perhaps in response, today Google said it will cut the time it stores users’ personally identifiable search data to nine months from 18 months.  Google claims this new policy will hamper its ability to deliver the most relevant search results and advertisements, but we believe that nine months of data should be more than sufficient to provide the most relevant search results possible.

These recent events indicate that Google will likely face heavy scrutiny much like Microsoft did in the late 1990s with their own antitrust issues.  Stay tuned….

Although Google seems nearly omnipresent, there may yet be a chink in its armor.  The fact that Google and Microsoft are aggressive competitors is no secret.  The irony is that the vast majority of users who access Google content use Microsoft’s Internet Explorer to do so.  Because of that, Google has always had concerns about Microsoft’s ability to control access to its search engine.  Partially in response to that concern, Google launched its new browser, Chrome, in an attempt to cut into Internet Explorer’s browser supremacy.

The early reviews on Chrome have been mixed.  Of particular note is the “con” that Chrome will arm Google with even more user information that it can incorporate into marketing and advertising research.  Chrome does, however, feature an option called Incognito mode that provides users with private browsing.  Interestingly, Google had recently griped about an update to Internet Explorer 8 with a similar function

While Google shouldn’t be underestimated, it is not likely that Chrome will significantly cut into IE’s dominance of the browser market.  When it first debuted, Chrome reportedly grabbed 2.57 percent of the browser market, but that number has dropped to 1.7 percent, presumably because the novelty factor has worn off.  Thus, Chrome’s release isn’t likely to result in any immediate changes to SEO and Internet marketing.

Investing in SEO is wise for the future of your business for a myriad of reasons. A primary reason is that the relevance and necessity of SEO will only increase as search engine use expands to a wireless and mobile market.

Verizon and Google are in early discussions regarding a partnership that would feature Google’s search service on Verizon phones. Verizon has 68.7 million customers and added 1.5 million wireless customers in the second quarter of 2008 alone. Clearly, the impending deal has significant SEO ramifications. Additionally, Google already has a deal with Sprint that gives Sprint PCS customers direct access to Google’s search engine.

Perhaps most astonishing is how Apple’s iPhone has transformed search engine use. Last February, Google reported that the iPhone produces 50 times more search requests than any other mobile handset. Apple has sold millions of iPhones (over one million just in the first weekend they were released) and is looking to further tap into the overseas market. The bottom line is that more users are performing more searches more frequently than ever before.

The trend does not appear to be slowing any time soon. The New York Times recently stated, “Google has a voracious appetite for expansion of its search business beyond personal computers and into the mobile world.” As an example, Google offers to upgrade numerous brands of wireless phones with its free products. As Google and other search engines expand into the mobile world, your business can gain significant exposure - but only if you take SEO seriously.