Online Advertising Forecast for 2010

Piper Jaffray estimates that the total online advertising market will reach $55 billion in 2010. That\’s a 27% CAGR from 2005 levels.

SG Cowen says companies will spend $17.3 billion in paid search and $12.4 billion in other forms of online advertising.

So this is a huge growth industry.

A professor of entrepreneurship once told me that while most start-up companies go out of business in the first five years, he claimed that 80% of businesses started in an industry whose growth rate exceeded 10% annually would be in business after five years.

Yahoo and Google Weather Reports; Legitimate Search Engine Tactics

Yahoo is now issuing \”weather reports\” to update all of us when they are doing major reindexing of the web, or reordering of their search engine rankings. They post updates on their Yahoo Search Blog at I am glad Yahoo is so open about their index updates.

Yahoo search relevancy seems to be improving a lot. I just did a number of searches on keywords for industries that I have worked in and consulted in, and the results are very good.

Google Enters Blog Search Space

It was only a matter of time. Today Google launched its Blogsearch
engine at It is fast, but reviewers say
it is not comprehensive enough. It looks like they started indexing my
blog RSS feed a few weeks ago, but my early posts have not been
crawled. When they start spidering all the old blog posts, and have the
most comprehensive index in addition to their fast search, then they
will be the most formidable blog search engine, in my opinion.

I was glad to see 92 hits on the search \”paul allen internet

Google\’s Amazing Hires–Now Include Vinton Cerf

The founder of recently complained that the cost of a good
engineer in Silicon Valley is skyrocketing because Google\’s demand for
top talent is creating a shortage for everyone else and wage inflation.
Now Google has hired Internet pioneer Vinton Cerf
who helped develop TCP/IP. He is going to be Google\’s Chief Internet
Evangelist. (I guess that relegates me to the role of chief unpaid
google evangelist. For an example of my enthusiasm for this company,

Free Web Analytics for All Advertisers?

NetIQ is selling WebTrends, one of the older and more popular web analytics applications, to a SF-based private equity fund for $94 million in cash. This surprised me, since NetIQ acquired WebTrends in 2001. Then again, their 5-year stock chart doesn\’t look so good.

But far more interesting is Google\’s acquisition of Urchin, one of the well-known low-cost web analytics solutions. The price was reportedly $30 million. I haven\’t used Urchin for a few years. I helped a client switch from Urchin to SiteCatalyst, a far better commerce-oriented web analytics solution. But in September 2004 Urchin launched a hosted solution in version 6, which represents a major step forward.