The latest survey by Pew Internet & American Life Project says search engines users are still relatively unsophisticated about why and how search engines work. “Internet users are very comfortable as searchers, partly because they set themselves up so it’s difficult to fail,” stated Deborah Fallows, senior research fellow at the Pew Internet & American Life Project and author of the report. “Search engines seem to be working for everyone,” continues Fallows. “The large group of naïve searchers is happy because they easily find quick answers to easy questions; and the smaller group of sophisticated searchers is happy because they know what to expect of search engines and how to use them smartly.”

The survey found that 84% of online American adults have used search engines. That amounts to 108 million people. On any given day, 56% of those online use search engines. 87% of online searchers say they have successful search experiences most of the time, including 17% of users who say they always find the information for which they are looking.

We turned to noted search engine guru, Andrew Goodman, CEO and principal of Page Zero Media and founder of Traffick.com, to give insider’s insight to the survey’s findings. Goodman stated, “The fact that users are so satisfied with search today speaks volumes about how far we've come. It's been five years or so since the views of Jesse Berst (‘Search Stinks’) or Jared Spool (‘Search Sucks’) were considered common sense. They were right. A few years ago, search did stink. But searchers stunk too. Search technology has improved, along with the average searcher's willingness to persevere.”

So, how can companies be found in this new "positive" environment? Goodman noted, “Quite simply, companies need to be upping their spend on a variety of forms of paid search and similar online advertising. Repetition is king in advertising. Search remains the most efficient means of reaching prospects online, so a mix of paid and unpaid search tactics along with the related tactics such as press releases, creating great content (blogs, outreach), etc., will create the visibility that leads to ongoing trust and repeat business.

"If markets are conversations, then search is just one form of glue that prevents the conversation from fizzling. If the Web is ‘pieces loosely joined’, you need to embrace the user's wish to be treated like an intelligent being, while not letting the ‘pieces’ get too loose. Search advertising is the perfect compromise. A separate issue is that your product or service must be remarkable and 'hot' or no amount of advertising is going to make it so.”

The survey results also revealed that 32% of respondents can't live without search engines. Will that number with all the localized search initiatives via Google and other players be boosted? Goodman stated, “The first wave of participants in the local online advertising boom will be national advertisers and early adopters. What will really make this useful is when a huge (second wave) influx of followers and smaller companies join the party. That's 3-4 years away.”

But, Goodman cautions, “In the meantime, smaller companies will unfortunately be targeted by scams that deliver few real customers. Because many look to cut corners, it's not uncommon to hear of a smaller business losing $1,000 to some buzzword-ridden scam because the $3,000-$5,000 price tag on a more reliable, trustworthy set of marketing services for small business sounded too ’expensive’."

Goodman continues, “Technology and standards also play a part. Local stores might uplink their inventory and pricing to a search engine so that I might be able to find and price birthday candles at 7-11 while I'm out mailing a letter, rather than having to search for some ’birthday candle specialty store’, or something equally stupid. The more this stuff makes sense, the more both users and advertisers will participate.”

In response to the disparity of only 1 in 6 users being able to differentiate unbiased search results and paid ads, Goodman stated, “I think it's just the immaturity of the medium. Older observers (55 and up) often aren't paying enough attention, and young observers (23 and younger) are caught in an education system that doesn't prepare them well for today's economy. The Internet and search are still so new that the average user lacks the historical perspective to properly deal with the evolution of paid messages. Fearmongering about privacy and wildly intrusive popup ads coexist with almost cult-like devotion to certain online communities and search tools. This will take time to sort itself out. As usual, certain elites will learn the ropes much sooner. The so-called ’digital divide‘ is still there, even if more people today have broadband.

“Awareness of the different listing formats and what is and isn't paid for will develop with time. Personally, I believe that most of the major search engines are labeling their sponsored links fairly at present. I would like to see some of them (Overture, for example) avoid partnering with intrusive spyware type schemes (Claria, for example).

“Advertising is a compromise. I haven't met too many people who would be willing to pay $100/year to use Google Search.”

What are Goodman’s predictions for search in regard to paid ads and their growth and change in the New Year, in light of these latest findings? Goodman predicts, “Local is going to catch a lot of people by surprise, but other than that, growth will be healthy but slower than in recent years. The exhilaration of having traffic come to one's Web site is giving way to a much stronger focus on a better sales funnel and a better user experience once one arrives at a Web site.

“Marketers will need to adopt better third-party tools for bid management and campaign management. This will be yet more important after MSN Search drops Overture in favor of its own bidding engine. More sophisticated reporting on times of day and other factors that correlate well with buying behavior (be it retail or otherwise) will start to spread beyond the early adopters who are already doing this. Google is now releasing an AdWords API, which will give third party software developers the opportunity to create more robust campaign management and tracking apps. This is a healthy development.”

Goodman continues, “It's important to be always thinking outside of the box as to what trends will affect how companies win new customers. Local search shouldn't be just thought of one-dimensionally, for example. Any number of big players could profoundly affect this market. Will it be the Apple EverythingPod, the Google Wired Living Room, the Microsoft Brain Implant? It probably won't be the traditional Yellow Pages companies.

“There's a rumor that Google will do something big like get into VOIP telephony. That may not be search-related per se, but keeping on top of trends like this is important because at the end of the day, more and more information, online and off, in different formats (voice, photo, etc.), will be searchable. The search-tech /portal / access-provider companies that keep staying out in front of the trends will have a huge influence on how consumers access information.

“Marketers need to stick to fundamentals, mostly, looking at the cost-per-acquisition metrics of campaigns and offering compelling products and services. But they also need to keep one eye attuned to the bigger picture. Don't make big bets based on obsolete assumptions.”