Aug. 28 (Bloomberg) — Google Inc., facing U.S. Justice Department scrutiny of its advertising partnership with Yahoo! Inc., will proceed with the agreement by early October, Chief Executive Officer Eric Schmidt said.

Google, the most popular search engine, is trying to pull off the deal amid concerns that it will give the company too much power in the $65 billion online advertising market. Senator Herb Kohl, a Wisconsin Democrat, asked last month whether the agreement will reduce Yahoo to “nothing more than the newest satellite in the Google orbit.”

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1. Look for keywords on your own web site.
Think like a customer and pick the words that your customers might be searching on to find you.

2. Use a keyword suggestion tool.
Google and Miva both offer keyword research tools. The Google Keyword Tool has been updated to show actual search volumes rather than a graphic. Miva also shows search totals on its Keyword Generator. Yahoo no longer offer the Overture tool, but if you are signed up to Yahoo Search Marketing, you can use the Yahoo! Keyword Assistant to research new keywords.

3. Think about keywords that attract customers at each stage of the buying cycle.
The buying cycle has three major phases: research, shopping and purchase. The closer someone is to buying, the more specific your keywords should be. For example, customers may search for “guitar” during research, “Fender guitar” while shopping, and “American Standard Fender Telecaster guitar” when they’re ready to purchase.

4. Pick a mix of broad and specific keywords.
Keep in mind that using more generic keywords, like “guitar,” can cause you to go through your budget and may not lead to sales as often, but can be helpful for driving traffic from prospective customers who are in the research phase. Selecting more specific keywords may deliver fewer clicks, but they may be more likely to result in sales.

It appears that Yahoo! has given up in their efforts to compete for advertisers PPC dollars, with the signing of an agreement to allow them to syndicate Google ads within their search results. This Yahoo!/Google agreement means that Google’s dominant position in the Pay Per Click market, is now set in concrete.

The share price for Yahoo has been falling after rejecting Microsoft’s takeover bid & shareholders have been very angry at what they feel was a bad management decision. Yahoo has been under pressure from shareholders, for major management changes, while others have even filed lawsuits. This deal with Google is meant to assist Yahoo!’s under performing revenues & appease the shareholders.

With Yahoo! now only achieving 19% search market share, it appears that they have now abandoned the PPC market, its users and advertisers. Google have now increased their already dominant position and bought even more market share, which can only reduce competition & increase costs!

Competition also breeds innovation – for both search consumers and the advertiser & without it, will Google now rest on its laurels & just rake in the money? The paid search market is still relatively young and has been going through rapid changes and growth. But with the battle already won, the need for product innovation is gone. Microsoft may very well have deep pockets and control of the desktop, but Live Search lacks the traffic to be a true competitor – and they also seem to have diverted their attention elsewhere – at least in the short to medium term.

A lack of competition also means that advertisers are likely to pay more for each click. Advertisers will be forced to pay for Google, rather than the cheaper Yahoo! rate & without an alternative, the Google monopoly will mean that they can increase their charges as and when they like! Whilst this is great for Google & the Yahoo! shareholders, it is not great for anyone who is already struggling to make a return from PPC marketing.

Whilst a combined Yahoo!/Microsoft might not have been perfect, it at least would’ve provided competition for Google, benefiting advertisers and searchers alike.

With the small advertiser being frozen out of PPC markting by the big players with big budgets, it looks like search engine optimisation & high natural search engine listings will be even more important for affiliate marketeers!!!

I’m sure everyone knows about the phenomenon that is Facebook! Now one of the worlds most visited websites, it seems that everyone & his dog is facebooking, poking, posting & answering incredibly pointless quizzes! Does anyone in Britain’s offices NOT have a minimised window open for a sneaky look when the boss isn’t around?!

So, when Facebook started taking ads, it seemed only sensible to consider this as a new advertising arena for affiliate marketeers. I originally set up a couple of ads for Cashback Shopper, but these were rejected by Facebook for contravening their terms & conditions / It would appear that because my cashback site contains a section on Gambling sites, it cannot be advertised, presumably due to the Americans laws on internet gambling!!!! Don’t get me started on how ridiculous I think that is!

However, I decided to leave the Facebook ads for a while but placed a few yesterday relating to My Travel Extras.

Facebook ads let you target the ad to a users interests, so I decided to create a separate ad for each product on the site. For example, Theatre Tickets targets “people age 18 and older in the United Kingdom who like Billy Elliot, Buddy Holly, Dirty Dancing, Going To The Theatre, Grease, Hairspray, High School Musical, Les Miserables, The Lion King, London, Lord Of The Rings, Musical Theater, Musical Theatre, Musicals, Nights Out, Oliver, Oliver Twist, Phantom Of The Opera, Restaurants, The Sound Of Music, Theater, Theatre, or Wicked.”

Facebook’s ad creation system is VERY picky about punctuation & proper use of capitals & symbols, so a few mistakes led to repeated rejections & a lot of frustration! However, once you are familiar with what you can & can’t do, it was pretty straightforward to create ads for Theatre Tickets, Car Hire, Theme Park Breaks, London Theatre Breaks, Airport Parking, Airport Hotels, Airport Lounges & Short Breaks.

Initial assessment of the stats shows that click through rates are pretty low compared to what you would be aiming for from Google Adwords or Yahoo Search Marketing, so the jury is still out. The best result so far is from Airport Lounges, with 0.12% click throughs! I’ll give the ads a week to see if they are worth continuing with.