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A report released by SearchIgnite yesterday concluded that U.S. paid search increased almost 27% in the third quarter of 2008 compared to the year-ago period. It looks like sellers have shifted more money into interactive advertising from traditional marketing as of late.

However, the same report stated that retail advertisers upped their search spending in the Q3 period only by 1.5%. Roger Barnette, SearchIgnite's president, stated in the report that, "Retail had issues throughout the year, but it hasn't affected all sectors." Barnette concluded by saying that travel, media and the non-mortgage area of financial services didn't dip like traditional retailers this past quarter.

Adding to a general retail pull-back dlately, the report also stated that retail sellers cut back on paid search spending by 10% in September. Whether retailers continue to curtail paid ad spending in Q4 amidst the most tumultuous market and consumer outlook in a long time remains to be seen, but market sentiment thinks it will. Overall September sales slowed down at a pace not seen in three years and October may not be any better. Less sales = less paid ad spending? Pretty likely.

Target Corp. (NYSE: TGT) bucked the "retailers in the dump" news this past weekend by opening up 45 new stores across the U.S., including its first two stores in the state of Alaska. The openings also included two newer prototype stores in Minnesota. As luck would have it, one of these store openings was located where I live. And it opened less than one-half mile away from an existing Wal-Mart Stores, Inc. (NYSE: WMT) Supercenter.

From conversations I've heard all summer, almost everyone looked forward to the new Target opening in my area. The feeling was that most of these folks wanted a competitor to Wal-Mart, even if it didn't mean lower prices. Perhaps they looked forward to the Target shopping experience instead of the Wal-Mart shopping experience?

The two Minnesota store openings included a new general merchandise prototype location as well as a new SuperTarget prototype location. Both include more space for food and electronics (two staple merchandising segments) and both were certified under the U.S. Green Building Council's Leadership in Energy and Environmental Design (LEED) program. Whether Target's newer stores will market this fact to the eco-conscious American shopper is unknown. The new store designs will be unveiled at more than 100 new locations in 2009, according to the company.

General Motors Corp. (NYSE: GM), which keeps saying that bankruptcy will not happen on the current management's watch, is closing more plants. The automaker said today that it will be closing a Michigan stamping plant and a Wisconsin plant as well. Surprise: the Wisconsin plant is responsible for SUV production.

In Michigan, more than 1,300 jobs will be lost when the automaker closes down the plant roughly one year from now. The Wisconsin plant will close in mid-2009 as SUV sales continue to slump. Even though gas prices have come down quite a bit in the last few weeks, U.S. citizens don't trust gas guzzlers any longer. If you have one and it's under water, stick with it. If you're looking for a new vehicle, you're probably not looking at an SUV.

Best Buy, Inc. (NYSE: BBY) shares were upgraded this week based on the likely bankruptcy of consumer electronics competitor Circuit City Stores, Inc. (NYSE: CC). In fact, analyst Bradley B. Thomas stated that, "We believe a Circuit City bankruptcy has become a question of 'when' rather than 'if'."

Circuit City, which recently fired its CEO after years of incredibly subpar performance and absolutely dismal results, isn't going anywhere right now. It's not even drawing interest from potential suitors. When you can't find a buyer, you know there's trouble brewing (even before the financial system went berserk in September). Big trouble. The company is looking at "strategic alternatives" to its business, which have to include declaring bankruptcy.

Thomas' assessment of Best Buy takes into consideration the weakness in the consumer economy and the impending bad retail holiday season, but Circuit City's situation could be more powerful than either of those factors. He also points to the fact that BBY shares have dropped 45% in just over a month, making it an attractive buy given Circuit City's weakness. If the consumer electronics industry in the U.S. has one large competitor after Circuit City folds up shop, it will be in prime position. And that position will be held by Best Buy.

Welcome to the 80th installment of The Wal-Mart Weekly, a column dedicated to bringing you insight, wit, facts, results, opinions, and just a bit of everything else when it comes to a very hot topic these days: Wal-Mart.

This week, Wal-Mart Stores Inc. (NYSE: WMT) is under fire for alleged major human rights violations in some of its Bangladesh factories. Although global manufacturers have often come under fire for slave labor conditions in PacRim-area factories, could this really apply to a retailer? After all, a retailer is a distributor, not a manufacturer.

In most cases, this is true -- but not when it comes to Wal-Mart. According to a SweatFree Communities report, Wal-Mart workers in Bangladesh were made to work 19-hour days while being paid $20/month. Sounds like a raw deal, so let's take a look.

Along with the rest of the tech industry last week, Google, Inc. (NASDAQ: GOOG) saw its stock price plummet. In the last two weeks, GOOG shares have seen a tailspin of $100 per share knocked off. While that would seem cause for concern for some companies, remember that Google fundamentally is still very strong: very little debt and billions in cash for just about anything it wants.

One thing it appears to want is more advertising revenue. In fact, the company made a move last week that we should all expect to see with the majority of Google's products in the next year or two: ads next to its web services. Starting with Google Maps, the company started supplying text advertising to the bottom of its Google Maps service. Add to that the "click-to-buy" buttons showing up on some YouTube videos and Google seems to be using the trial-and-error method to see how it can expend it advertising revenue reach beyond search.

TechCruch reported that comScore's rating for Google Maps in August was 131 million unique visitors with 1.3 billion page views. It makes sense for Google to tap advertising into this product just based on those number alone. but, it can't just think plugging relevant text ads (as in search) will magically work. Google could stand to get innovative and find a way to really make interactive advertising work on Google Maps. If it can repeat the success of innovation within different ad models in its wide array of products, Google will be unstoppable. To many, it's already there. but, there is still room to grow.

With the stock prices of thousands of public companies taking a very large nosedive in recent weeks, it stands to reason that some companies with little debt and who're also flush with cash may be seeking to turn on their acquisition engines and snap something up. With Research In Motion Ltd. (NASDAQ: RIMM) down almost 90 points from its 52-week high set just this summer, could the email addict support company be ripe for a buyout? Who would want to gain RIM's immense cellphone/email subscriber base that seems to keep outperforming larger competitors? Think Microsoft Corporation (NASDAQ: MSFT).

The company just said that it is experiencing higher costs due to the launch of newer smartphones (like the Storm), and if you take that with the pounding the overall market has taken, RIMM could be left as a willing acquisition to the company that failed to snatch up Yahoo, Inc. (NASDAQ: YHOO) earlier this year. Microsoft's Windows Mobile is a venerable mobile operating system but does not have the core business email user base of the cachet of the Blackberry. At the $60 per share level, RIM would be a $34 billion takeover, which is still quite large for Microsoft to swallow. Is RIM worth it? You decide.

Microsoft would seem to have a more logical fit with an RIM acquisition (in its entirely) than by gobbling up Yahoo and having so much overlap in the process. If the future really is mobile (for computing, communications, etc.), Microsoft's potential acquisition of RIM would be years ahead of its time and possibly even a bargain if one were to look at the broadband and wireless landscape circa 2015. It's got the cash, and it's got the moxie. Whether it has the will to try another huge acquisition in 2008 is anyone's guess

Target Corp. (NYSE: TGT) has started selling a Blu-ray disc player for what is probably the lowest retail price you can find one at: $229. I've said many times in the past that this new format will not catch on with consumers until retail prices routinely get to less than $200, so this new price from Target is nearing that mark. Of course, panicked U.S. consumers probably won't be buying any Blu-ray players the remainder of this year as they watch what wealth they did have evaporate in the markets.

The Target model is an Olevia brand player (yes, that's an off-brand), which marks a $70 reduction from a recent Sony Blu-ray player that is being sold alongside the Olevia player for $299. Still, unless there is some breakthrough difference that Blu-ray manufacturers and retailers can market correctly, most U.S. consumers will stay with their progressive-scan DVD players that sell for $75 or less and have a perfectly fine picture (although not true high-definition).

So, perhaps sometime in late 2009 -- roughly a year from now -- the market will see $99 Blu-ray players and regular consumers may finally feel the urge to buy one and start re-purchasing their movie libraries in yet another format. That is, until super-duper, high-fidelity Purple-ray players hit the market sometime in 2014 and the cycle repeats yet again. Perhaps by then, we'll all be out of this economic funk and won't be protecting our cash hoards, however little they may be by then.

Sprint Nextel Corp. (NYSE: S), even as it loses hundreds of thousands of customers, continues to pay its executives astonishingly high salaries and overall pay packages. This according to analyst group Glass Lewis & Company.

Top managers at the telecom company were awarded pay valued at $74 million in 2007, even as the company saw massive customer defections to the competition and was preparing to toss out former CEO Gary Forsee in the process. Sounds like some recent AIG shenanigans, doesn't it? No wonder Main Street no longer trusts Wall Street. Although corporate compensation abuses are almost the norm recently, it's amazing shareholders don't stand up and scream when companies not doing well are lavishly rewarding management.

Of course, Sprint spokesperson James Fisher defended his employer by stating "It's very important to consider that 2007 was a highly unusual year because of compensation that was paid to an exiting CEO, as well as sign-on compensation paid to a new CEO ... we had significant other severance charges for executive changes during the year." Severance charges -- for a management team that ran the company into the ground. I guess all those contracts signed by incompetent management were too hard to bypass since shareholders can't blow holes in those golden parachutes.

Best Buy, Inc. (NYSE:BBY ) is staging a marketing event to deploy two "store brand" laptops that will hopefully address two major complaints of laptop PC buyers - weight and battery life. Of course, this has been the argument for portable PCs for over a decade. The two new laptops are manufactured by Toshiba and Hewlett-Packard Corp. (NYSE: HPQ) and will be sold under the faux brand "Blue Label." This name probably signifies Best Buy's official corporate color more than anything.

Of course, both laptops will retail for $1,199, a hefty price for anything but a high-end retail laptop PC in 2008. If Best Buy is going to price these at $1,200, it better darn sure hope that there is something revolutionary about these two models. Specifically, a battery life increase of at least 50% under normal operating conditions, as well as at least 1.5 pounds less in weight than comparative models that cost half as much. A pound is hugely significant in the laptop PC weight arena -- but Best Buy needs to go beyond that for such a premium price. Agree? Disagree?

Although Best Buy is marketing these as designed by "customer feedback," there's nothing earth shattering here. Battery life and weight have always been at the forefront of wants and needs from the laptop PC consumer. Manufacturers have seen fit to continue making their wares compete with features and aesthetics more than what customers have asked for, such as Apple, Inc. (NASDAQ: AAPL) who clearly gets it. But the Windows PC world? Not so much. Will this be another empty promise or a half-hearted marketing move? We'll see once these two models hit store shelves and customers actually start using them.

Ford Motor Corporation (NYSE: F) will see its Volvo Car division shed 3,300 jobs as the American automaker continues dealing with a huge slowdown in sales in the U.S. as well as other global markets. The auto industry is not in a death spiral at the moment (although it's been described that way), but expect the largest restructuring of one of the largest industries ever in the last 50 years. Ford will help lead the way, unfortunately.

Volvo announced that 2,700 of the positions will be eliminated in its home country of Sweden while 700 additional positions will be cut globally. The company said in a statement this week that "to meet the rapidly deteriorating market situation in the global car industry, the management team at Volvo Car Corporation has decided to initiate further structural changes in all parts of the business." That is light language for "the sky is falling."

The Swedish company will also get rid of contracts with 700 consultants. As it makes these cuts, they can't be the last, I'd expect more announcements in 2009 from Volvo as well. Consumers continue flocking to vehicles with smaller prices, smaller engines and larger MPG figures. Volvo, which makes great cars, just doesn't have the product mix to fit that description. That is the price for inflexibility not only in the U.S. market, but for all global consumer markets that are under extreme duress at the moment. Everyone hopes it gets better soon, but your guess is as good as mine.

If you're a Google, Inc. (NASDAQ: GOOG) user, you probably enjoy the relatively high quality of the company's products at t cost of -- zero. How does Google give all this away for free, you ask? It's the same as any other company on the web that features quality products at no cost. The cost is your privacy. You are paying, and paying big.

Do you mind? It's hard to say what kind of personal, financial and psychological profile Google has on millions of its customers, but you can believe that this massive marketing database exists. How Google manages this will be the most important decision in the company's young, decade-old existence, but the question remains: do many of us sell our souls for freebies? Every time you sign up for something free but fill out a complete demographic profile to get it, you're selling out. Google is doing nothing different -- but its scale is so huge that all this data controlled by one entity does cause for concern among the informed consumer inside us all. It should, anyway.

Google, like anyone in business who is savvy, knows that giving away products or services for "free" on the front end is made up for on the back end. In other words, would you rather pay for every single product or service you use and not have any entity know how to market to you -- or would you rather get a good majority of your products and services at no cost but with the attached condition that there are many entities out there that know you better than you know yourself?

More importantly, they know how to push your exact buttons to have you behaving like a robotic consumer or a slot machine junkie? With the U.S. consumer responsible for two-thirds of economic activity (as little as that is at the moment), the harnessing of this kind of power becomes clear. Okay, I'm off to perform a Google search...

Wal-Mart Stores, Inc. (NYSE: WMT) has not followed the trend of blue chip stocks that have seen 20% losses in the last few months along with the broad market. Indeed, WMT shares are up from just over $46 per share in January to over $56 per share today. WMT shares hit $63 just under a month ago, so yes -- they are down since September.

So, what's going on? Why were Wal-Mart shares downgraded this week? Sentiment from the downgrade states that Wal-Mart is most likely not immune from the continuing economic situation in the U.S. (and worldwide, of course).

Prices will continue to rise, unemployment may get worse and growth may stall (of wait -- those are all already happening). When this happens, what do consumers do? Why, they flock to Wal-Mart, of course. The haven of low prices becomes a hideout in turbulent economic times, and the stock market must agree after looking at WMT share price trajectory in 2008.

Will Wal-Mart weather the storm? To a point, it already is. Sure, all retailers are expected to have a dismal holiday season this winter, but Wal-Mart will do better than the competition. It has more stores, more pricing leverage and more wherewithal to hold customers hostage with lower prices and inventory turns at a time when it's needed most. Perhaps we'll see WMT return to the $60/share level by Thanksgiving -- if not sooner.

Google, Inc.'s (NASDAQ: GOOG) YouTube continues to take the lion's share of the online video market. Although startup Hulu.com -- which will broadcast the U.S. Presidential candidate debate live tonight -- has come on strong, YouTube has it. Everyone from teens with $69 digital cameras to professional videographers are uploading video footage to the site.

Google announced recently that it was upping the file size of uploaded video to the site as well -- by a factor of 10. Going from 100 Megabytes to 1 Gigabyte per uploaded video is amazing in and of itself, but this will make YouTube all the more attractive to those who want to take rather exhaustive video and upload it for all to see while not being constrained.

For example, five minutes of video on a standard digital camera (just an average, of course) will easily eat up 100 Megabytes of storage. Since we're not all video compression experts, Google -- with this change -- has just allowed its online video universe to expand in a huge way.

In addition to the video file size increase, YouTube's new uploader will allow multiple file uploads at the same time. This is also a rather large change from the "upload and wait" scenario of the past. Although Google surely wants to make more money from the massive amount of video viewed every minute on YouTube, giving regular customers the ability to have larger videos (and several at one) uploaded should just push it that much further in front of the online video pack. What it needs now is to lift the 10-minute limitation for non-partners. But then again, that would invite a whole new universe of copyright piracy. Maybe.

InterActive Corp.'s (NASDAQ: IACI) search engine and information portal Ask.com continues to try and re-invent itself to compete more heavily with search leader Google, Inc. (NASDAQ: GOOG). With Yahoo! Inc. (NASDAQ: YHOO) being such a large distraction over this past summer, the time seemed appropriate for Ask.com to try -- again -- to take some steam from Google. From anyone, for that matter.

It still won't happen. Here's why: Google's search product still is compelling to all that use it, even with marginally better search products. Google also has its hand in news, email, documents, spreadsheet, blogs, etc., and continues to recruit the customer that uses Google for everything possible on the web.

Its main product is search and that also provides almost all its revenue. But how can Ask.com compete with something like this? A better product, faster search results, or a more intuitive experience won't cut it any longer. What Ask.com would need is a disruptive product to even think about competing with Google. It's been over a few years since I've written on Ask.com's foray into competing with Google. In many ways, it's superior. That's, unfortunately, no longer enough.

Is Ask.com trying to win a losing battle? Perhaps. When Ask.com CEO Jim Safka says that Ask.com can recruit web searchers from Google with a 30% speed increase in search results, he's deluding himself. I'm not sure where that research came from, but Ask.com may be on its last stand. The search engine is pulling in ad revenue from the use of its products, and it may be content to grow steadily in that arena for the time being. But if it really wants to attack Google's ad revenue cash cow, something completely innovative and fresh needs to be forthcoming.