
Google is quietly rehearsing its arguments against Microsoft's approach to Yahoo in internal discussions which could indicate the search group's lobbying strategy once a bid comes before regulators. Their concern that Microsoft could extend its dominance of the desktop to become the leader in online display advertising seems, however, not to be shared by those who would be most directly affected: Advertisers. Most ad agencies are pretty clear that they and their clients welcome the prospect of a stronger rival emerging to Google. The stakes are high, with online ad revenues forecast to increase from $38.6bn in 2007 to nearly $80bn by 2010. And even with last month's news that clicks on Google's ads in the US had fallen 0.3 per cent year-on-year in January, compared with a growth rate of 27 per cent as recently as November, There's still room for an awful lot of growth out there.
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