Well, this is scary.  The Second Circuit Court of Appeals has ruled against Google in a lawsuit (Rescuecom Corp. v. Google Inc.).  The summary of the suit is that if a user searches for a trademarked word (or phrase) then results imply sponsorship:

According to Rescuecom’s allegations, when a Google user launches a search for the term ‘Rescuecom’ because the searcher wishes to purchase Rescuecom’s services, links to websites of its competitors will appear on the searcher’s screen in a manner likely to cause the searcher to believe mistakenly that a competitor’s advertisement (and website link) is sponsored by, endorsed by, approved by, or affiliated with Rescuecom.

MarketingVOX also is linking to more lawsuits that are on the same topic over at SearchEngineLand.

This is what happens when courts, judges, and lawyers who are out of touch with reality decide cases that involve technology that they have never seen or used or understand.  This is patently absurd and the courts need to move into the current century.

A new story out from eMarketer is showing how search marketing dollars are being spent by clients. The data, from Search Engine Marketing Professional Organization (SEMPO) used research from a Radar Research study.

The short version of the article is that of the $13.5 Billion spent in 2008, 88% went to Search Marketing and 11% to SEO. The assertion, however, is that more money will be flowing into SEO programs in 2009 because it delivers longer term results.

DMIdeas caveat… SEO works as long as you spend the big $$ on an infrastructure that eliminates human error.

The other takeaway from the article is that Search Engine Marketing spending will grow rapidly over the next 5 years as shown in this chart:

This is huge for the newspaper business.  Over the last several years, as national advertising dollars have moved online they’ve increased their focus on their traditional strong point, local & small business advertising.

What is causing this shift in ad dollars from offline to online?  Well, the increasing ability of marketers to geo-target their PPC advertising.  PPC (both display based and text based) are far superior to offline print advertising competitors in their ability to geo-target, demographic-target, and, in general, perform far better from a conversion perspective.  Now, with PPC advertising, you’re not locked into a click through to a web site and then having to convice a user to fill out a form, no, you can have that add drive directly to a phone call to your business or call center.  Something that print definitely can not do.  This makes the impulsive click a definitive lead generator for both small and large businesses alike.

We’re seeing not just a shift in small businesses, but other, larger, more traditional print advertisers, your regional businesses like car dealers and their networks, medical groups, and other regionally focused (and traditionally print based) advertisers.

Click on over to eMarketer and read the article, it’s a short, but informative piece.

US Local Ad Market Shrinking – eMarketer.