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Former Microsoft and Yahoo employee, Jascha Kaykas-Wolff, is heading to WebTrends to become their Vice President of Marketing. Kaykas-Wolff comes to WebTrends directly from a business consulting firm, but previously held senior management roles at Microsoft and a management role at Yahoo.

WebTrends CEO Alex Yoder said, “Jascha is a veteran digital marketer, and brings a successful track record of developing and executing strategies that enhance customer experience and deliver meaningful results. His background with Internet and software companies, along with his first-hand experience with WebTrends, has ideally prepared him to lead the delivery of WebTrends’ vision and solutions to the marketplace.”

Related Reading:
WebTrends Releases New Online Analytics Tool
WebTrends Launches New Service to Reduce Wasted Ad Dollars

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.

Google is updating its iPhone search application with a new voice search feature, according to the New York Times. The update is expected to be available in the iTunes app store sometime today.

Users will be able to speak their questions into the phone. The speech is recorded and sent to Google servers which will try to understand the recording and find the answer via Google’s search engine.

One of the cool parts of the app is that it will use the iPhone accelerometer to know when a user has raised the phone to their ear. For the iPhone-less, the accelerometer senses motion. There’s a bunch of games that use this feature for their apps. So if you ever see an iPhone user making weird motions, that’s why.

The update wasn’t yet available in my iTunes, but I’m looking forward to checking it out when it is.

Oh, I should mention that Google isn’t the first to bring voice search to mobile. Microsoft and Yahoo already have brought voice search to some devices. But a search in the iTunes store didn’t reveal anything else that was a solid voice search app (not that Apple’s iTunes search is the best).

Related Reading:
Google Updates Search Results for iPhone
Google’s My Location Now with WiFi
Google Prepares iPhone Ad Options

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No, the two are not related, as far as I can tell. But Congratulations to Firefox (my personal browser of choice) for reaching 20% of market share. They reached the number for 2 out of 4 weeks in October. For a browser that doesn’t come pre-installed on most computers, that’s quite impressive.

The new privacy feature is included in a pre-release version of Firefox 3.1. It’s called “Private Browsing” and you can turn it on via the Tools tab. When you do, it won’t store data such as history, cookies, and cache. But it only prevents such storage for the browsing you do when the feature is turned on. To store that info again, just turn it off.

What Private Browsing does NOT do is keep you anonymous on websites or your ISP. It also is not a security tool to prevent spyware downloads and such.

A good use of the tool is if you’re looking online for Christmas gifts but you don’t want your husband to find out what you’re getting him! (Just make sure to take note of the things you want to remember.)

Related Reading:
Yahoo’s Inquisitor Plugin Now Available for Firefox and Internet Explorer
Download Firefox 3 Today: Firefox Download Day to Set a Guiness World Record

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Microsoft announced its earnings for the fiscal quarter ending September 30, 2008. For them, it’s the first quarter of their fiscal year, while other companies go with the traditional calendar and call it their third quarter.

Their net income increased by 2%. This was due largely in part to XBox360, a gaming console which recently received a price slash.

It has been widely noted that Microsoft has a bunch of cash on hand, especially since they didn’t end up acquiring Yahoo after all (yet). MSFT was up .28 at the time of this post. Though with the markets as volatile as they are, that could change at any minute.

Here’s the press release:

Microsoft Reports Record First-Quarter Revenue
Thursday October 23, 4:10 pm ET
Revenue surpasses $15 billion with healthy sales of enterprise software and Xbox 360 consoles

REDMOND, Wash., Oct. 23 /PRNewswire-FirstCall/ — Microsoft Corp. today announced revenue of $15.06 billion for the fiscal quarter ended Sept. 30, 2008, a 9% increase over the same period of the prior year. Operating income, net income and diluted earnings per share for the quarter were $6.00 billion, $4.37 billion and $0.48, respectively.

Microsoft showed particular strength in multiyear annuity sales, which grew more than 20% during the quarter from the combined businesses of Client, Microsoft Business Division and Server and Tools.

“Our customers are asking how they can save money and do more with less,” said Kevin Turner, chief operating officer at Microsoft. “Microsoft is uniquely positioned to help our customers save money through supplier consolidation, increased productivity, and a low total cost of ownership through the depth and breadth of our product portfolio and solutions.”

Microsoft continued to add to its product and services portfolio with innovative offerings such as Microsoft SQL Server 2008, Microsoft Hyper-V Server 2008 and the first service update to Microsoft Dynamics CRM Online.

“In a challenging economic environment, the first-quarter results exhibit the strength and diversity of our business model,” said Chris Liddell, chief financial officer of Microsoft.

Business Outlook

Microsoft’s business outlook reflects a balance of risks and the likelihood of a continued economic slowdown. The trends seen late in the first-quarter are now forecasted to continue, whereas previous expectations were for the economy to improve in the second half of the fiscal year. In this economic environment, the company is focused on three main actions; working with customers to provide high value products at the lowest total overall cost of ownership, increasing focus on expense management and targeting investment into the highest priority strategic opportunities.

Microsoft management offers the following guidance for the quarter ending
Dec. 31, 2008:
— Revenue is expected to be in the range of $17.3 billion to
$17.8 billion.
— Operating income is expected to be in the range of $6.1 billion to
$6.4 billion.
— Diluted earnings per share are expected to be in the range of $0.51 to
$0.53.

Management offers the following guidance for the full fiscal year ending
June 30, 2009:
— Revenue is expected to be in the range of $64.9 billion to
$66.4 billion.
— Operating income is expected to be in the range of $24.4 billion to
$25.5 billion.
— Diluted earnings per share are expected to be in the range of $2.00 to
$2.10.

Liddell noted that “we feel extremely good about our relative competitive position and our ability to continue outgrowing IT spend. We believe our exceptionally strong cash flow, product pipeline and financial strength will allow us to weather economic conditions well.”

Webcast Details

Microsoft will hold an audio webcast at 2:30 p.m. PDT (5:30 p.m. EDT) today with Chris Liddell, senior vice president and chief financial officer, Frank Brod, corporate vice president and chief accounting officer, and Bill Koefoed, general manager of Investor Relations, to discuss details of the company’s performance for the quarter and certain forward-looking information. The webcast will be available for replay through the close of business on Oct. 23, 2009.

About Microsoft

Founded in 1975, Microsoft (Nasdaq: MSFT - News) is the worldwide leader in software, services and solutions that help people and businesses realize their full potential.

Forward-Looking Statements

Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results could differ materially because of factors such as:

— challenges to Microsoft’s business model;
— intense competition in all of Microsoft’s markets;
— Microsoft’s continued ability to protect its intellectual property
rights;
— claims that Microsoft has infringed the intellectual property rights
of others;
— the possibility of unauthorized disclosure of significant portions of
Microsoft’s source code;
— actual or perceived security vulnerabilities in Microsoft products
that could reduce revenue or lead to liability;
— government litigation and regulation affecting how Microsoft designs
and markets its products;
— Microsoft’s ability to attract and retain talented employees;
— delays in product development and related product release schedules;
— significant business investments that may not gain customer acceptance
and produce offsetting increases in revenue;
— changes in general economic conditions that affect our investment
portfolio or demand for computer hardware or software;
— adverse results in legal disputes;
— unanticipated tax liabilities;
— quality or supply problems in Microsoft’s consumer hardware or other
vertically integrated hardware and software products;
— impairment of goodwill or amortizable intangible assets causing a
charge to earnings;
— exposure to increased economic and regulatory uncertainties from
operating a global business;
— geopolitical conditions, natural disaster, cyberattack or other
catastrophic events disrupting Microsoft’s business;
— acquisitions and joint ventures that adversely affect the business;
— improper disclosure of personal data could result in liability and
harm to Microsoft’s reputation;
— outages and disruptions of online services if Microsoft fails to
maintain an adequate operations infrastructure;
— sales channel disruption, such as the bankruptcy of a major
distributor; and
— Microsoft’s ability to implement operating cost structures that align
with revenue growth.

For further information regarding risks and uncertainties associated with Microsoft’s business, please refer to the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Risk Factors” sections of Microsoft’s SEC filings, including, but not limited to, its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or at Microsoft’s Investor Relations Web site at http://www.microsoft.com/msft.

All information in this release is as of Oct. 23, 2008. The company undertakes no duty to update any forward-looking statement to conform the statement to actual results or changes in the company’s expectations.

Microsoft Corporation
Income Statements
(In millions, except per share amounts) (Unaudited)

Three Months Ended
September 30,
2008 2007

Revenue $15,061 $13,762
Operating expenses:
Cost of revenue 2,848 2,675
Research and development 2,283 1,837
Sales and marketing 3,044 2,683
General and administrative 887 718
Total operating expenses 9,062 7,913
Operating income 5,999 5,849
Other income (expense) (8) 367
Income before income taxes 5,991 6,216
Provision for income taxes 1,618 1,927
Net income $4,373 $4,289

Earnings per share:
Basic $0.48 $0.46
Diluted $0.48 $0.45

Weighted average shares outstanding:
Basic 9,084 9,380
Diluted 9,183 9,513

Cash dividends declared per common share $0.13 $0.11

Microsoft Corporation
Balance Sheets
(In millions)

September 30, June 30,
2008 2008 (1)
(Unaudited)
Assets
Current assets:
Cash and cash equivalents $9,004 $10,339
Short-term investments (including
securities pledged as
collateral of $1,011 and $2,491) 11,718 13,323
Total cash, cash equivalents, and
short-term investments 20,722 23,662
Accounts receivable, net of
allowance for doubtful accounts of
$168 and $153 9,535 13,589
Inventories 1,640 985
Deferred income taxes 1,974 2,017
Other 3,331 2,989
Total current assets 37,202 43,242
Property and equipment, net of
accumulated depreciation of $6,622
and $6,302 6,552 6,242
Equity and other investments 4,381 6,588
Goodwill 12,291 12,108
Intangible assets, net 1,899 1,973
Deferred income taxes 1,041 949
Other long-term assets 1,751 1,691
Total assets $65,117 $72,793

Liabilities and stockholders’ equity
Current liabilities:
Accounts payable $3,351 $4,034
Short-term debt 1,975 -
Accrued compensation 2,138 2,934
Income taxes 514 3,248
Short-term unearned revenue 11,815 13,397
Securities lending payable 1,070 2,614
Other 3,520 3,659
Total current liabilities 24,383 29,886
Long-term unearned revenue 1,662 1,900
Other long-term liabilities 5,478 4,721
Commitments and contingencies
Stockholders’ equity:
Common stock and paid-in capital -
shares authorized 24,000;
outstanding 8,977 and 9,151 61,655 62,849
Retained deficit, including
accumulated other comprehensive
income of $877 and $1,140 (28,061) (26,563)
Total stockholders’ equity 33,594 36,286
Total liabilities and
stockholders’ equity $65,117 $72,793

(1) Derived from audited financial statements

Microsoft Corporation
Cash Flows Statements
(In millions) (Unaudited)

Three Months Ended
September 30,
2008 2007
Operations
Net income $4,373 $4,289
Depreciation, amortization, and
other noncash items 585 435
Stock-based compensation expense 443 333
Net recognized losses (gains) on
investments and derivatives 36 (187)
Excess tax benefits from stock-
based payment arrangements (44) (69)
Deferred income taxes 376 357
Unearned revenue 4,186 3,821
Recognition of unearned revenue (6,044) (4,965)
Accounts receivable 3,985 2,806
Other current assets (558) (235)
Other long-term assets (116) (11)
Other current liabilities (4,552) (1,189)
Other long-term liabilities 700 493
Net cash from operations 3,370 5,878
Financing
Proceeds from short-term debt 1,975 -
Common stock issued 228 646
Common stock repurchased (6,493) (2,930)
Common stock cash dividends (998) (938)
Excess tax benefits from stock-
based payment arrangements 44 69
Net cash used in financing (5,244) (3,153)
Investing
Additions to property and
equipment (778) (510)
Acquisition of companies, net of
cash acquired (377) (5,396)
Purchases of investments (4,246) (5,997)
Maturities of investments 464 330
Sales of investments 7,075 9,120
Securities lending payable (1,543) 196
Net cash from (used in) investing 595 (2,257)
Effect of exchange rates on cash and
cash equivalents (56) 58
Net change in cash and cash
equivalents (1,335) 526
Cash and cash equivalents, beginning
of period 10,339 6,111
Cash and cash equivalents, end of
period $9,004 $6,637

Microsoft Corporation
Segment Revenue and Operating Income (Loss)
(In millions) (Unaudited)

Three Months Ended
September 30,
2008 2007
Revenue
Client $4,218 $4,139
Server and Tools 3,406 2,900
Online Services Business 770 671
Microsoft Business Division 4,949 4,117
Entertainment and Devices Division 1,814 1,929
Unallocated and other (96) 6
Consolidated $15,061 $13,762

Operating Income (Loss)
Client $3,267 $3,388
Server and Tools 1,151 959
Online Services Business (480) (267)
Microsoft Business Division 3,311 2,700
Entertainment and Devices Division 178 167
Corporate-level activity (1,428) (1,098)
Consolidated $5,999 $5,849

Source: Microsoft Corp.

Lawrence Lessig, a Professor of Law at Stanford Law School, will be giving the opening keynote at Search Engine Strategies Chicago on Monday, Dec. 8, 2008. The title of his keynote is “Remix: Making Art and Commerce Thrive in the Hybrid Economy.”

And, if you read the description of Professor Lessig’s keynote in the conference agenda, it says: “The content industry has convinced industry in general that extremism in copyright regulation is good for business and economic growth. That’s false. In this talk, Professor Lessig describes the creative and profitable future that culture and industry could realize, if only we gave up IP extremism.”

What is he getting at?

Well, “Remix: Making Art and Commerce Thrive in the Hybrid Economy” also happens to be the title of Professor Lessig’s new book, which just went on sale on Amazon.com.

And, according to the editorial reviews on Amazon.com, “The author of Free Culture shows how we harm our children — and almost anyone who creates, enjoys, or sells any art form — with a restrictive copyright system driven by corporate interests. Lessig reveals the solutions to this impasse offered by a collaborative yet profitable ‘hybrid economy’.”

It goes on to say that Professor Lessig, who is the reigning authority on intellectual property in the Internet age, “spotlights the newest and possibly the most harmful culture war — a war waged against our kids and others who create and consume art.” It adds, “America’s copyright laws have ceased to perform their original, beneficial role: protecting artists’ creations while allowing them to build on previous creative works. In fact, our system now criminalizes those very actions.”

How does it do that? Well, Professor Lessig argues that “biting” riffs from films, videos, or songs shouldn’t be crimes. Why? It makes felons out of some of today’s most talented artists.

Professor Lessig argues that the way to end this war is to embrace what he calls the “read-write culture,” which allows its users to create art as readily as they consume it. And he can already see glimmers of a new hybrid economy that combines the profit motives of traditional business with the “sharing economy” evident in such websites as Wikipedia and YouTube.

Wow. That’s strong stuff. And, if we play buzzword bingo at SES Chicago 2008, then there are a couple arcane business concepts that we can use on our bingo cards.

But, this short blurb may not do justice to Professor Lessig. So, I emailed him some questions about the topic of his opening keynote. And he emailed me his answers — quickly, I might add.

Here is our Q&A:

Q: Who benefits and who is harmed by extremism in copyright regulation?

A: Benefits: Lawyers (certainly). The record companies (maybe). Harmed: Artists, businesses, consumers — and a generation of (criminalized) kids.

Q: What are the “read-write culture” and the “hybrid economy”?

A: A RW culture is one where ordinary people are empowered to participate in the creation and recreation of their culture. Every culture in human history has been RW, save for a few dark years in the 20th century.

A hybrid is a commercial entity that tries to leverage value out of a sharing economy, or a sharing economy that tries to use a commercial entity to support it. Either way, two radically different cultures need to learn how to work together with each other.

Q: When will this war on our kids stop, the “read-write culture” be reborn, and the “hybrid economy” start to flourish?

A: When policy makers are woken up to the extraordinary cost this war is imposing.

Q: Where can we already see glimmers of a new “hybrid economy” that combines the profit motives of traditional business with the “sharing economy”?

A: I think everywhere around us. All of the interesting Internet businesses today are hybrid: Flickr, Second Life, Yelp!, even Amazon builds much of its business from the sharing activity of its customers.

Q: Why is IP extremism bad for business and economic growth?

A: Practice moderation. When the lawyers in the room start insisting that the licenses you create must impose perfect control over everything you have, ask them to prove it. Ask them to demonstrate that the business return from that relationship of antagonism is higher than its cost. Don’t give over your business’ future to those who don’t think like a business man or woman. Keep focused on the only undeniable truth: IP is an asset. Like any business asset, it should be deployed to maximize the value of the corporation.

Let me add that I’ve watched the 19-minute-long video of Professor Lessig speaking at last year’s TED Conference as well as the 4-minute 35 second video from OpenSourceCinema which is embedded below. So, I am confident that he will rock the house at Search Engine Strategies Chicago.

Lessig Remix

Professor Lessig was also named one of Scientific American’s Top 50 Visionaries, for arguing “against interpretations of copyright that could stifle innovation and discourse online.” He’s on the board of the Creative Commons project has served on the board of the Electronic Frontier Foundation. He was also a columnist for Wired, Red Herring, and the Industry Standard.

In other words, he’s a speaker worth coming to SES Chicago to hear. And, yes, I do think I’ll put some of his arcane business concepts on a buzzword bingo card.

The Interactive Adverising Bureau (IAB) and PricewaterhouseCoopers have released internet advertising data for the first six months of 2008. The six month period saw $11.5 billion in revenues, up 15.2% over the same period in 2007.

The second quarter of 2008 was up 12.8% over Q2 of 2007, but showed a slight decline, 0.3%, from the first quarter.

Search revenues neared $5.1 billion, up 24% year-over-year. Display neared $3.8 billion, up 19%.

“Interactive advertising continues to demonstrate year over year growth as marketers and consumers increase their embrace of digital media,” said Randall Rothenberg, president and CEO of the IAB. “The essentially flat performance we see quarter to quarter reflects in part cyclical advertising trends. Compared to the trajectory in other media and in the general economy, interactive has outperformed because it delivers a level of accountability unmatched by any other advertising medium.”

Related Reading:
Online Publishers Turning to Ad Networks to Sell Unused Inventory
Internet Advertising Reaches Record High in 2007
IAB Issues Guidelines for Lead Quality

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