Reading about Search Engine Benchmarks: Visit to sale conversion rate where Dennis Mortensen shows that Microsoft Paid Search (AdCenter) is more effective in achieving the goal of the paid ad than Google or Yahoo Paid Search:

"… I found that Microsoft appears to be the best converting Search Engine today!

" …The findings which were exceptionally consistent from web property to web property – consistent as in the order of the engines. I did find that there was a large fluctuation, but in almost every instance the order hold true."

 Did Microsoft finally figure out how to Win?   My guess is – AdCenter, with it's superior targeting capabilities along with the more discerning and goal oriented advertisers – is going to produce a better result than AdWords or Panama.

Talking about the Commodization of Search Marketing, of SEM and SEO, well… WalMart, via Sam's Club,  is going to be a big player in 2008, according to Search Engine Land in a post titled – Coming Soon To Walmart: Off The Shelf SEM Services?

That's right… America's "favorite" retail chain is offering online advertising packages starting at the low, low rate of $100 per month.  Ha, Ha, Ha.

-owned Sam's Club, perhaps you'll see a package for SEM services on the shelf next to 40 packs of razor blades and 12 cans of tuna. Karl points out that Sam's Club is now pitching "SEM" online, at least what seems to be a $100 per month PPC service.

The email advertisement notes that the services are provided by Innuity, a Redmond, Washington-based search engine marketing company. It appears that Sam's Club and Innuity formed back in June 2004 (and re announced in August 2005), so this is nothing new, just little known. So next time you stop off at a Sam's Club, check the shelves for a great rollback price on SEM services."

 You know what I always say – Commodization is usually bad for anything specialized – though it's good for the Consumer.   But if you can totally make off the shelf SEM Services (and I'm not suggesting that WalMart can do that all by itself) the "Cottage Industry" of SEM … pretty much …. goes away.   

Not that I'm against that, personally.   But when I want make a living – providing off the shelf services is usually not a good way to go (you can make a living anywhere services are sold, but won't make that much) – and I know that from experience. 

After all, selling SEO and SEM services is not like selling Milk and Butter – or is it?  No, it's not, but if people can get 100 Dollar per month SEM Services, they might not care.

That's why, making my living largely as a Web Analyst – which is less likely to fall into the Commodization funnel.   

Look at it this way, a commodity is something you can buy easily, you go to a gas station and buy gasoline (it's a commodity, you worry about price and quality – but you can get it pretty much anywhere – so you look at price more – you don't care what it Brand it is – it's just Gas).

Same thing with a loaf of Bread – do I care that much if it's Wonder Bread Whole Wheat, with 7 grains or do I want something more local, like some health bread from a local bakery.   People don't generally give commodity items that much attention – so if you start bringing SEM and SEO, Online Advertising to the Commodity level – and it's successful – that pretty much cuts out the bottom of the cottage industry of SEM.

And if Walmart is doing it – is Kmart and Target far behind?  How about Macy's? 

Just got the news that AOL to Acquire Israeli Ad Company Quigo which should heat up the Google, Microsoft, AOL? advertising network aggregation going on over the last year.  According to Yahoo Business (original source was paidcontent.org):

"….The purchase is designed to help the Time Warner unit better compete against the stepped up online ad initiatives from Google (NasdaqGS: GOOG – News) and Yahoo. Quigo's two main ad serving products include AdSonar, which is similar to AdSense in terms of providing targeted placements on websites and through searches, and FeedPoint, a search engine marketing tool. Quigo has raised $45 million since opening its doors in 2000. The bulk of the investments, about $30 million, has been secured over the past year from existing backers, including Steamboat Ventures (Disney), Highland Capital, Leon Recanati's Glenrock Ventures, IVP and Meritech Capital Partners.

As we've noted, Time Inc. signed an exclusive agreement with the contextual ad search company in June. The deal gave Time Inc.'s 15 web titles a custom version of Quigo's pay-per-click ad service, allowing the online magazines to be sold as a single network. Time Inc. executives estimated that the Quigo deal will bring in $100 million in revenue over the next three years. Similarly, at the end of October, Quigo signed a multi-year contract with TheStreet.com (NasdaqGM: TSCM – News) to develop a custom version of AdSonar for the financial news site. (Release)"

I guess, AOL liked the results they got with Time Inc deal and decided to just buy the Quigo ad network outright.