Google has recently launched a preview of their new tool, Caffeine. This program provides a developer preview allowing webmasters and power searchers the ability to give feedback on organic search results. In short, we will get to weigh in on Google’s algorithmic changes before they are launched.

So will this new tool affect your Google AdWords campaigns? According to Google, and an interview with Matt Cutts, the answer is simple; No. However, as a Search Engine Marketer, I believe we can use the information being provided from Caffeine to make smarter choices with our PPC campaigns. Unlike with past algorithm updates, we are able to get a preview of how our own listings will look. As we all know, SEO results are long-term and can take some time to change. If your positions drop due to these updates, it is your SEM campaigns that will immediately accommodate for these shifts that we are likely to see in organic results.

Creating a new campaign aimed at top positions for certain keywords that may be affected is a great way to combat an organic drop in visibility. With Google’s Caffeine we can be one step ahead of the curve in proactively selecting keywords to bid on. Be sure to check out this tool so that you can create a strong PPC campaign to quickly reclaim your presence.

Google recently announced that they have been working on a behind-the-scenes update called “Caffeine”. It’s not a complete overhaul like MSN implemented at the beginning of June with their new search engine, Bing. In fact, Google has stated that the user interface will not be changing with this update and that the ranking of sponsored listings will also not be affected. Anyone familiar with search engine optimization (SEO) knows that the algorithms are updated regularly; however, an update of this size hasn’t been made since 2006.

So what’s the difference?

The goal of Caffeine, which until recently was under wraps, is to construct a new architecture for Google’s search. This includes increasing the index size, speed, accuracy, comprehensiveness, along with other factors.  As with any update to search engines’ algorithms, this does not seem like a big deal from a searcher’s perspective, but these changes are made to improve their overall searching experience.  It may also have an impact on someone focusing on SEO more than the average searcher.  For instance, your site may not rank quite as well for some keywords, and for others your site may not be affected at all.  Also, if more pages are indexed, this could lead to increased competition.
Caffeine is still in the works, so it’s hard to say how the final update will roll out. Google has set up a web developer preview for searchers and webmasters to test and provide feedback based on the results:  http://www2.sandbox.google.com/.    When you search for something on the preview site, at the bottom of the page, you’ll see a link that says “Dissatisfied? Help us improve” where you can provide a comment.  Be sure to include the word “Caffeine” somewhere within your comment.

The much anticipated search engine merger of the year was announced earlier this week. According to Computer World, and others, Yahoo and Microsoft will officially join forces in the search engine world. According, to PC Pro, Microsoft’s Ballmer says, “The ten-year deal will see Microsoft’s Bing put to work powering Yahoo’s searches. In return, Yahoo will take over selling premium advertising for the two companies, with a revenue-sharing deal in place.” What does this mean for advertisers? There are pro’s and con’s depending on how it pans out.

Let look at the pro’s first. The merger between Yahoo and Microsoft should spur creativity and innovations. Both search engines have experience with search and display advertising; now they can collaborate on new ideas and thoughts on improving search engine advertising options.

Speaking of improvement, it might affect cpc bidding for the better. If Yahoo is going to be reaching more people, then advertisers might start migrating more of their advertising budgets to Yahoo. If that happens, cpc’s in Google could ultimately drop, especially since Google claims that part of ad ranking depends on your competitor’s cpc bid. It would definitely be a win for certain industries that currently have to bid significant dollars in Google for a keyword, in order to get first page ranking.

On the contrary, cpc’s could increase since there will only be two major players competing. It could change to “here’s the cpc price” take it or leave it. This would drive businesses with smaller budgets to look for cheaper ways to advertise online, whether they advertise on more niche search engines or look more seriously at the social media avenues of advertisement.

Time will tell whether this search engine partnership will be a success for all or only for some. I’m hoping it’ll be a success for all, especially for search engine advertisers. It should be interesting to see how Google responds to the Yahoo and Microsoft announcement.