Search Engine Optimization, Search Engine Marketing and Search Engine Positioning Weekly Free Newsletter, December 10, 2005 edition

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(Continued) The RFS Newsletter, Dec. 10, 2005. Page 4
In other news on Tuesday, according to various news reports this week, America Online (AOL) is largely expected to work with Microsoft in a PPC advertising and Internet search project. An announcement of some kind could come by the third week of December, the reports say. In one scenario, AOL and Microsoft would create a Web ad service that would compete with Google's service. In light of the new reports, many industry watchers no longer expect Time Warner to unload a big piece of America Online. Despite the troubles of America Online, which gets most of its sales from outdated dial-up Internet access, the Internet service may be too valuable to sell off, they say.

"It would be strange if Time Warner let go of AOL," said media consultant Joseph Jaffe. AOL gives its parent company a huge beachhead in the online world, he notes. That's something that Disney (DIS) and other rivals still don't have. Even so, rumors had circulated since September that Time Warner wanted to sell a stake in AOL or create a joint venture with Microsoft, Google or Yahoo. In fact, Yahoo is believed to have dropped out of talks with Time Warner earlier this year.

In news that happened Wednesday, according to DoubleClick's latest Search Trend Report, the cost of the average keyword was up 47 percent from September 2004 to September 2005.

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