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TECH TALK: 2006 Tech Trends: Search and Online Advertising

January 6th, 2006 · No Comments

5. Search is at the heart of the rise of online advertising.

Apple and Google were among the two best performing stocks on Nasdaq. Apples comeback and prospects reflect the promise of the digital revolution. Googles growth mirrors the shift in advertising dollars from traditional media to the online world reflecting the increasing time and importance of the Internet in all that we do. The simple search box has become the start of most of our online explorations. The contextual ads become, for some, useful content. Matching profiles and searches to showing relevant ads has now become a science. And it all begins with the humble search box.

Bloomberg: The move to online advertising is happening faster than analysts anticipated as companies devote more of their budgets to the Internet than traditional media. The market for online ads will increase 32 percent to $16.6 billion next year, fueling growth at companies including Google Inc. and Yahoo! Inc., Credit Suisse First Boston analyst Heath Terry said in a research report. He had previously forecast 21 percent growth. Sales of online ads that have animation, sound or interactive features will jump 66 percent next year to become the fastest growing area of Web ads, Credit Suisse predicts.

David Kirkpatrick in Fortune: Take a new concept known as community-powered search. Yahoo is forging an early lead over Google in this fast-evolving technology with its acquisition last week of del.icio.us for a rumored $35 million (the actual amount was undisclosed). Del.icio.us operates on principles similar to the popular MySpace. But whereas that social network site helps members find dates, form groups, and share music picks, del.icio.us helps members find hot informationwebsites that others have found useful. (News Corp. recently bought MySpace, for $580 million.) Soon we will see a new form of results, like What Others Liked, on all search engines. It’s how Amazon tells its customers what others have bought, except that these search results involve information. In many cases, community-powered searches will let members find what they’re looking for more quickly than they would on a purely computerized type of web search, which Google does so superbly. Yahoo was already introducing community-based searches with My Web 2.0. Of course, Google is surely working on its own alternatives.

Google Blogoscoped: Google will finally go ahead and release a real web-wide video search. It will be integrated into Google Video and you will find both user-uploaded files, as well as videos found on the web. The video search will quickly make its way into the small selection of homepage links.

USA Today: Technologies will emerge in multiple realms in 2006 and beyond from video games to cable TV to podcasts that will give advertisers intriguing abilities to pinpoint designated segments of the public with specific messages.

Next Week: 2006 Tech Trends (continued)


TECH TALK 2006 Tech Trends+T

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