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After news came that Jerry Yang would be stepping down as Yahoo!’s CEO, the immediate reaction by analysts, Wall Street, and your neighbor’s cat was: MICROSOFT ACQUISITION TIME!

But Steve Ballmer, CEO of Microsoft, is saying: Not so fast.

Ballmer has said time and again that Microsoft has moved on from the possibility of returning to the good ol’ days of negotiating a Yahoo! acquisition.

And while it’s tempting to think that he’s just waiting for that stock to drop to around $2-3 a share (hey, only $6-7 more to go!), consider this: Yahoo’s VP of Search Technology, Sean Suchter is leaving the Sunnyvale search engine. And I hope he likes rain and coffee, because rumor has it that he’s headed to Microsoft.

That rumor was reported by none other than Kara Swisher, who is pretty much never wrong. The only thing I’m wondering is: Where’s the noncompete agreement?

Amidst the rumors and denials, one thing is for sure. No matter how much Ballmer would like the speculation to end, it won’t.

I spoke at PubCon last week — about How SMBs Can Use PR Campaigns To Grow Traffic and Alternative Discovery and SEO - Feeds, PDFs, and Blog SEO.

But, enough about me. Let’s talk about the top trends spotted at last week’s search engine and Internet marketing conference and expo in Vegas, baby!

For the record, I not only spoke at PubCon, I also looked at the 88 articles about it in Google News, the 77 articles in Yahoo! News, the 406 posts in Google Blog Search from the past month, and the 799 posts that IceRocket has found from the past month.

Then, I used a new tool called Twist, which lets you see trends in Twitter, to chart the hundreds of Tweets about PubCon over the past 30 days.

But, I could have just as easily looked at the session agenda grid for PubCon. Why? Because Brett Tabke, PubCon’s organizer, had set most of the agenda for 2009 when he selected the keynote speakers and creating the conference tracks. That’s why.

So, it was dead easy to spot the top trends at the six-track educational conference hosted by SearchEngineWorld and WebmasterWorld. Heck, even the most sleep-deprived attendee would know they were video, blogs and Twitter.

Video is hot — and YouTube video is red hot. This was reflected in the choice of George Wright, the VP Marketing & Sales at Blendtec, as one of the keynote speakers.

Described as the “The best viral marketing campaign ever,” George’s viral marketing campaign, “Will it Blend?,” has changed the face and the future of online marketing. Seen by more than 100 million people on the Internet and reported on by traditional media outlets like the Today Show, the Tonight Show, and the History Channel, Will it Blend? continues to deliver unprecedented corporate awareness through social media channels. This new form of marketing has delivered a 700% increase in sales for Blendtec, a small Utah based blender manufacturer, with an initial investment of $50.

Oh, and in case you didn’t notice that video is hot, Brett added a Video and Multimedia track with five sessions to drive the point home.

Blogs were big, too. This was reflected in three tracks at PubCon: one on Social Media Marketing, another on Social, Brand, and Reputation Management, and a third on Linking as Social Media Networking.

Now, blogs certainly aren’t considered the “newbies” of the social media scene – “granddaddies” is probably a more appropriate name. But that gives them an advantage from a marketing perspective – the medium has matured and moved from early adopter phase to the mainstream. That means more consumers are not only reading blogs; they are being influenced by blog content when it comes to what they decide to buy and who they decide to buy it from.

If you want a second opinion, sign up for tomorrow’s free webinar: “Consumers and the Influence of Blogs: What it Means for Your Marketing Mix.” It starts at 2:00 P.M. EST/11:00 A.M. PST and will be moderated by Kevin Ryan, SES Advisory Board Chair and CEO of Motivity Marketing. It will feature Barry Parr, Analyst, JupiterResearch, and Rob Crumpler, President and CEO, BuzzLogic. They will be discussion a new BuzzLogic-sponsored research study conducted by JupiterResearch, entitled, “Harnessing the Power of Blogs.”

But, you could also see the power of blogs at virtually ever session at PubCon.

In fact, there were tables in the sessions so the dozens of bloggers who were live blogging the event could blog more comfortably. (I think this is a first: I’m not sure that I’ve ever put bloggers, blogging and blog in the same sentence before.)

And what about Twitter? No, none of the keynote speakers was from free social networking and micro-blogging service. And, no, there were no Twitter tracks. And I can’t even find Twitter mentioned in the title of any of the 85 sessions.

But, trust me, you couldn’t miss the Twitter trend if you’d hit every one of the special events — from the exhibitor cocktail reception sponsored by Bruce Clay and Apogee Search, to the SEOmoz WereWolf Event, to the WebmasterRadio Search Bash, sponsored by Microsoft Live Search.

For example, I was sitting in the session entitled, Five Bloggers and a Microphone - What’s The Worst That Can Happen? It was moderated by Ken Jurina, and the speakers included:
• Andy Beal, Internet Marketing Consultant, Marketing Pilgrim LLC,
• Lee Odden, CEO, TopRank Online Marketing,
• Michael McDonald, Managing Editor, iEntry Inc.,
• Barry Schwartz, President, RustyBrick, Inc.,
• Jane Copland, Search Marketing Consultant, SEOMoz.

When it came time for Q&A, one of the first questions came from a woman in the audience, who said, “I asked my circle of friends on Twitter what I should ask you, and I got eight questions. If I eliminate the seven that are inappropriate, here’s one that the panel can answer….”

That brought down the house.

Oh, PubCon also had lots of tracks and sessions on SEO, SEM and interactive site reviews. But they’ve had those for years. The new news is video, blogs and Twitter. These are the top trends that I spotted at this year’s PubCon.

Contextual advertising network Chitika has announced that their Premium Ads product has seen 200% growth in 2008. The ads are now being served on the sites of 34,000 publishers.

Chitika says the ads work best on sites that garner traffic from search engines. The ads on the publisher’s site target the keywords that the visitor came in on. The ad also offers the ability to search within the ad, never having to leave the page of the site they’re currently visiting.

Chitika calls it search-targeted advertising. Because of that, they’re comparing the program to search engine ads. And they’re saying they’ve surpassed Ask.com’s August 2008’s numbers of 364 million searches.

Related Reading:
Chitika Injects Video, Social to Ads
Chitika Launches Automatic-Merchandising Ads

Yahoo! has announced that Jerry Yang will step down as CEO once his replacement has been found. Yang will remain on board as Chief Yahoo!

Yang became CEO in June 2007 at the request of the Board of Directors. Board Chairman Roy Bostock will lead the search for a new CEO. Here’s his official corporate-speak on the matter:

“Over the past year and a half, despite extraordinary challenges and distractions, Jerry Yang has led the repositioning of Yahoo! on an open platform model as well as the improved alignment of costs and revenues. Jerry and the Board have had an ongoing dialogue about succession timing, and we all agree that now is the right time to make the transition to a new CEO who can take the company to the next level. We are deeply grateful to Jerry for his many contributions as CEO over the past 18 months, and we are pleased that he plans to stay actively involved at Yahoo! as a key executive and member of the Board.”

It’s easy to pick on Microsoft. It’s practically a national pastime at this point. So when they announced their Cashback program to help grow Live Search, the snears came fast and furious.

“You have to pay people to search?” they said.

Turn your laughter into claps, people. It turns out that Cashback is working. Microsoft is seeing positive results on three goals it said it would report. They are:

• Number of offers in the system
• Advertiser return on investment (ROI)
• Percentage of commercial search queries as measured by comScore

There’s been a 30% increase in the number of products offered via Cashback. 4.5 million unique users per month are generating 68 million commercial queries. eBay has seen an increase of 50% on their ROI.

“We believe this early traction speaks to the differentiated and unique value proposition of Microsoft Live Search cashback for both consumers and advertisers, especially in these tough economic times,” said Brad Goldberg, general manager of Microsoft Live Search.

Is it really any surprise that incentives work? No. Have you ever been listening to the radio and they’re having a $1,000 giveaway? You have to be listening at the right times to call in.

Incentives are nothing new. Microsoft was smart to implement them into Live Search. People don’t necessarily use Google because it’s any better but because it’s familiar. Live Search needs a way to get people searching, and Cashback is working to help accomplish those goals.

That may be why Microsoft is expanding Cashback by partnering with shopping cart providers Miva Merchant, Early Impact Inc. (ProductCart) and 3DCart. Through the agreement, merchants who use the shopping carts are eligible for Cashback.

Search Engine Strategies Chicago starts in four weeks on Dec. 8, 2008. Since SES Chicago is the only SEM conference in the Midwest, it is expect to attract more than 2,000 attendees, or “delegates.”

But as Butch Cassidy frequently asked the Sundance Kid, “Who are those guys?”

In the past, there was anecdotal information about the quality of attendees who came to Search Engine Strategies Chicago. And as a frequent speaker, I would often ask for a show of hands to get a sense of the percentage of first time attendees and SES veterans.

But now, there is survey data that provides a clearer picture of the demographics of delegates from last year’s event. And I suspect it’s the kind of information that exhibitors and sponsors of the SES expo have been asking for:
• 87% of delegates are new to SES, 13% are alumni;
• 85% of delegates approve or recommend purchasing decisions;
• 52% of delegates have a high level of experience within search marketing;
• 36% of delegates are from a company of 100+ employees;
• Nearly 1,300 unique companies attended SES Chicago 2007, 27% of these companies sent two or more staff.

In addition, 41% of the attendees are in marketing or management; 27% are in web design or e-commerce; 23% are in corporate management or owners; and 9% are non-marketing professionals. And 57% approve or specify purchases, 28% make recommendations, and only 15% have no involvement in purchases.

That’s why you’ll see 40 sponsors and exhibitors at the Search Engine Strategies Expo. Savvy search engine marketers understand the value of quality attendance.

As Bill Muller, the VP Marketing for iProspect, has said, “SES is a terrific event series, one that we plan to be at in New York, San Jose, and Chicago.” Or as Ginny Redgate, VP Marketing for Hitwise, has said, “SES provides us great brand visibility within the search marketing community as well as quality leads. It is a great place for us to connect with our clients.”

I don’t think Butch Cassidy and the Sundance Kid could have said it better.

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Scott Moore and Al Warms are leaving Yahoo, while Jeff Dossett is joining the Sunnyvale search engine. Dossett replaces Moore, who headed up Yahoo!’s media group. Al Warms headed up Yahoo News, Tech and Education, and came to Yahoo through the acquisition of Buzztracker.

“Jeff is one of the country’s most experienced online media executives, and I’m confident he is well-suited to lead Yahoo!’s audience business to even greater heights,” said Hilary Schneider, Yahoo! executive vice president. “His understanding of consumer needs and high-quality premium programming will help ensure that we continue with Yahoo!’s reputation of inspiring audiences and attracting marketer dollars.”

Moore and Warms join the mass exodus of senior level employees leaving Yahoo in the aftermath of a failed acquisition by Microsoft and in the midst of poor earnings, layoffs and a plummeting stock price.

When I read that AOL.com launched a new homepage, I naturally hopped on over there to see what the new look, um, looked like. It looked the same, except with dark blue trim and web 2.0 stripes in the background for good measure.

Otherwise, it still holds the same basic design as….Yahoo. I then came across a story by Reuters which says Yahoo and AOL are conducting “due diligence” on a possible (probable?) merger by the two web companies. I was not at all surprised.

Something else to know about the new AOL is that it incorporates a new social element.
What the new feature allows you to do is sign into social networks like Facebook and Bebo directly from the homepage.This is a smart move and will blend nicely with Yahoo’s push toward open source should the merger occur.

“As the Web becomes more fragmented, consumers want choice and relevance in their Web experiences. AOL.com is the first traditional big portal to offer access to popular social networking sites all in one place,” said Bill Wilson, Executive Vice President, AOL Programming. “Now consumers can connect with their numerous networks and information sources all from AOL.com. We have already seen success by opening up AOL.com to other e-mail providers. We will continue to enhance the appeal of our portal with the changes we are making today by adding more relevant programming, customization opportunities, greater integration of third party content, improved design and access to social networks directly from AOL.com.”

Click Forensics has released click fraud data for the third quarter of 2008. Overall, click fraud declined slightly. And by slightly, I mean barely noticeable.

• The overall industry average click fraud rate was 16.0% for Q3 2008, down from 16.2% reported for both Q2 2008 and Q3 2007.
• The average click fraud rate of PPC advertisements on search engine content networks was 27.1 percent, down from 27.6% in Q2 2008 and 28.1% in Q3 2007.
• Traffic from botnets was responsible for 27.6% of all click fraud traffic in Q3 2008, up from 25.2% for Q2 2008.
• In Q3 2008, the greatest percentage of click fraud originating from countries outside North America came from Russia (4.9%), France (4.8%) and the U.K. (3.5%).

Click Forensics president Tom Cuthbert had this to say about the data:

For the past two quarters the industry average click fraud rates seem to be hovering around the 16 percent level. Gains are being made by advertisers taking more action to proactively filter out fraud before it affects online campaigns. However, the growth in click fraud traffic from botnets continues to rise and it should be one of the top areas advertisers and the industry should monitor closely.

Related Reading:
Q1 2008 Click Fraud Down from Last Quarter, Up from Last Year
Lycos Partners with Click Forensics to Improve PPC Quality
Google, Yahoo Launch Click Fraud Resource Centers