The Google Juggernaut is marching unchecked across the Internet’s ‘Web2.0-fied’ until Yahoo and Microsoft a smart thing. Yahoo is doing okay on the innovation front but Microsoft needs a booster dose from a tanker of Red Bull.



A look at the online coverage of the all the issues the deal has thrown up:



Michael Nguyen agrees with me:


I’m thinking of AIM, AOL users, Time-Warner’s video content, etc. Incorporating Google branded software (Google toolbar, Google desktop, Firefox with Google search) in AOL cds could be another route. I’d expect to see many more Google/AOL deals in the future.







The Houston Chronicle says the deal has given Time Warner a breathing space:

The purchase may help Time Warner Chief Executive Officer Richard Parsons bring more visitors to AOL’s site as billionaire investor Carl Icahn pushes him for changes to lift the company’s stock price. It also allows Google to hold onto its biggest search customer and delivers a blow to Microsoft Corp., which tried for almost a year to sell its own search technology to AOL.







But Carl Icahn is unhappy. he thinks The deal will block AOL ’s way in seeking a wholesale buyer.



I see Gtalk+AIM+VOIP.



Searchenginewatch sees similar things





The most Offending part of the deal for Google fans worldwide:



An Excerpt from The AOL News Release

“Expanding display advertising throughout the Google network.“



Echoing the users’ fears, The New York Times says, AOL Coaxes Google to Try Busier Ads.



Danny Sullivan has done a great analysis of this ‘prickly’ issue and reading his analysis I have confirmed that Google has promised no exclusive access for AOL on the One Box area where Google displays vertical search results.



Any way, Google has been thinking about Graphics in its ads for a while. I guess (and I pray) Google will stay to its slim-look philosophy and will offer graphic ads only sparingly.



Joe Wilcox at The Microsoft Monitor has played the Devil’s Advocate and suggests that soon the Google Monopoly will attract the scrutiny of the government. Wow, Google has already become the next Microsoft! But where are the Netscapes and Wordperfects for Google to quash blatantly?


I wonder if Google’s dominant position in search and now exclusive deal with AOL might generate scrutiny. I wouldn’t call Google a monopoly nor would I say that the AOL deal attempts to extend its influence into an adjust market. Please don’t misunderstand my position. But it is an exclusive deal between two giants and one that’s sure to rumple somebody’s feathers.





Joe goes on to predict a solid fightback by a Yahoo and Microsoft,but forgets to mention that maybe, Google might as well have gotten itself an exclusive investment agreement, perhaps?


In the long term, I think Google will have given up more than gained by the AOL deal. Google has given great opportunity for rivals Microsoft and Yahoo! to mount a marketing counter strike. Consider the dynamics of the AOL deal. Google pays AOL $1 billion–granted for a paltry 5 percent stake–and gives AOL preferred placement on search results. If I were Microsoft and Yahoo! sales folks, I would position this as Google paying a major customer to stay one. Then there is the exclusive deal that gives AOL special treatment over all other customers. If I were Microsoft or Yahoo!, I would take the moral high ground, emphasizing that they will treat all searches the same. The message could be particularly important to Microsoft, which has made smaller businesses a major focus of MSN adCenter.





Did you know:

Through this deal, Google also gets to own a part of the Weblogsinc Blog Network. Interesting.



My final take:



The AOL deal also tells major advertisers and content providers that Google can be their most-useful ally. Google already offers SEO advice to its major advertisers. It is a mighty challenge for the Madison Avenue types.