Time Magazine Editor Josh Quittner and AOL CEO Tim Armstrong took the stage on Friday afternoon at the Fortune Brainstorm Tech conference in Aspen. Most of the interview was centered on AOL’s content strategies.

But what I really wanted to know about was what AOL’s plans were around search. Their long term Google deal expires in December. And from what we hear both Microsoft and Google are gunning for AOL’s search traffic.

Why? AOL is the fourth largest U.S. search engine, but they have just 2.5% market share.

If Microsoft could add AOL’s searches, though, they’d be, with Yahoo’s share, above 30%. Search volume brings more advertisers, and more advertisers means a more robust bidding system. Microsoft needs that 2.5%.

But there’s more. AOL visitors tend to click on search ads at more than twice the rate that people click on ads on Google’s search engine. So that 2.5% market share is really more like 6% of total search advertising market share.

Google has paid AOL more than $600 million/year for search over the last several years. With the appropriate amount of negotiating leverage, that number could increase dramatically.

Armstrong says there are more than two companies competing for their search traffic, which presumably means Yahoo has somehow gotten itself into the mix. But the only real competition, says our sources (and common sense), is Microsoft and Google.

Both companies want the deal. The bids are getting high enough that one person familiar with the negotiations suggested (jokingly, I think) that it may be cheaper just to buy AOL outright – their current market cap is just $2.25 billion.

Lots of people are keeping an eye on the ongoing MySpace search negotiations. But the MySpace deal will be a pittance compared to what AOL brings in. We expect a deal to be done by September, based on information from sources.

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Big Money: AOL’s Beauty Pageant With Google, Microsoft For New…

One thing Silicon Valley doesn’t have enough of are solid product visionaries. The problem is the really good ones tend of start their own companies. Or whoever they work for locks them up so tight that no one can pry them loose. But there’s one guy I’ve kept my eye on for the last few years, Eckart Walther, who seems to be in play. I wonder for how long.

I first met Eckart when he was at Yahoo as a group vice president of product management for search – that was back in the day when Yahoo was still the no. 2 search engine behind Google and had no plans to relinquish that title. Prior to Yahoo he was at Tellme (acquired by Microsoft). And way back in the day, at Netscape. Most recently he parked himself at LiveOps doing God-knows-what.

He’s left LiveOps and has quietly taken a position at Accel Partners as an entrepreneur in residence. That means he’s being paid to sit around and think a lot, and occasionally join a meeting or two. I randomly saw this on his Facebook feed this evening and haven’t had a chance to talk to him about his plans. But he’s likely to either be starting a new company or looking for his next job at a startup.

Keep an eye on whatever he does next, it’s likely to be something worth watching. Follow him on Twitter at @eckartwalther.

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Product Guru Eckart Walther Goes Free Agent As EIR At Accel Partners

Behavioral targeting is all the rage with online display advertising right now, and video search engine blinkx is bringing it to video. For the past few years, blinkx has offered contextual video advertising through its Ad Hoc program, which matches ad keywords against a speech-to-text translation of the video, as well as all the tags and titles associated with that video. “We are extending targeting in Ad Hoc from contextual to behavioral,” says CEO Suranga Chandratillake.

He explains the new targeted advertising product in the video below (I caught up with him last week as he was passing through New York City). Overall, blinkx powers 17.5 million video searches a day across its network, which reaches more than 60 million people a month. But for now, the behavioral targeting will work only on blinkx.com, which is a small part of its overall reach. Using cookies, blinkx will assign psychographic profiles to people base don what they watch. It will start with nine profiles, including Yoga Moms, Digital Dads, Gossip Girls, Adventurers, and Infonauts.

Brands will be able to target specific segments by showing their ads only to Yoga Moms or Digital Dads. People are classified in the different buckets depending on what they watch. Binkx trains the system by extracting different concepts from each video and matching them to a profile. For instance, videos about children, crafts, soccer, or terrible twos are the types of things Yoga Moms supposedly watch. Advertisers can see the keywords associated with each psychographic profile to determine who they want to go after.

By blending contextual and behavioral targeting, Chandratillake thinks he can get the best of both worlds. But true behavioral targeting would probably require data inputs from beyond blinkx.com, and even beyond any group’s video viewing habits. True behavioral targeting would take into account what websites you visited recently, and not just what videos you’ve watched. But blinkx is starting with what it can control. Down the line, it might have to incorporate data from broader behavioral targeting ad networks.

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Blinkx Starts Targeting Video Ads At Yoga Moms And Infonauts (Video…

Yesterday we broke the news that Aardvark, the social search engine, was being acquired by Google for $50 million. Aardvark confirmed the acquisition to us yesterday (though they didn’t comment on the amount), and now Google and Aardvark have publicly announced the deal with posts to their official blogs, along with some more details about how Aardvark will be integrated with Google.

Unlike some of Google’s past startup acquisitions that  resulted in services shutting down or restricting new user signups, Aardvark is going to continue running at full steam.  New users can still sign up, and it’s already featured as part of Google Labs (though it hasn’t been integrated with Google search at all — it’s just a link to Vark.com).

As far as changes to the service, a Q&A on the Aardvark blog says that they’ll be able to move faster as Google puts its support behind it (some Googlers will be joining the Aardvark team).

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Aardvark Continues Running At Full Steam After Google Acquisition,…

I’ve been a fan of Apple’s Mail.app for quite some time, even though we’ve had our ups and downs, it’s gotten the job done. One of my biggest beefs with Mail.app is searching through past emails. It’s just horrible.

Central Atomics is hoping to fix that problem with Rocketbox. Rocketbox is a new way of searching your e-mail in Apple Mail.app — it’s more advanced than Mail’s search, with the ability to search by person, a search engine that is up to 200x faster than Mail’s, and powerful filters that make it easy to find what you need.

One neat thing about Rocketbox is its search-by-person suggestions.  Rocketbox analyzes your e-mail correspondence and provides a list of important contacts when you search, so you know who you’ve emailed the most.

Also, Rocketbox will show you Inline previews, with highlighted snippets telling you why a message was found, making it easier to scan through emails. The highlighted section then helps you improve your queries and takes the guess work out of using search.

Rocketbox is extremely similar to Xobni, which is the Windows alternative, with a few more features like social network information, and contact information, etc.

Overall, Rocketbox is a great addition to Mail.app, and the entire search experience. You can get a 30 day trial, or buy the full version or $14.95, but the first 100 TechCrunch readers to use the code “TECHCRUNCH“ can get Rocketbox for $9.95, instead of the regular $14.95, when checking out.

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Rocketbox Lifts Off With Better Email Search For Apple Mail

At the same time, the company is releasing Bing Maps UK and thus no longer redirecting users to Multimap.com.

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Microsoft Drops Bing’s Beta Tag, Launches Bing Maps In UK

Google released a new mobile navigation app today and GPS navigation companies such as Garmin And TomTom saw their shares take a plunge. The announcement shaved $1.2 billion off of Garmin’s market cap alone. It’s shares are down more than 16 percent so far today to $31.60. TomTom’s shares are down 21 percent to $8.11.

And this is just for an Android app. But Google could very well make it available to other phones as well, and that is what has investors worried. GPS navigation apps are among the most expensive, and most lucrative, of all mobile apps. TomTom sells its iPhone apps for $50 to $100, with a different app per country.

Google just cut the traditional GPS navigation companies at the knees by releasing what may be a far superior product for free. It is not a standalone navigation app. Rather it taps into a lot of the resources Google makes available on the Web, including Google Maps, Streetview, voice recognition, and sophisticated search. You can use voice search just as you would look for something on Google’s search engine. “Where is the Pizza Hut in downtown Palo Alto”? If Google’s search engine can find it, then so can Google’s navigation app. Garmin and TomTom can’t compete with that kind of Web-scale computing power.

And Google is happy to give its navigation app away for free because it leverages many existing technologies it has already built for the Web, and it encourages more people to use Web-capable phones and do local searches on them. It’s strategy is to give the software away for free, and make money on the search ads.

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Google’s New Mobile App Cuts GPS Nav Companies At The Knees

Gazopa, a search engine that uses features from an image to retrieve similar images, has been in private beta since it launched during TechCrunch50 last year. To recap, Gazopa lets users upload a picture, enter a URL of an image, create a drawing or right-click on an image anywhere on the web (via a plug-in) and retrieves similar images. A thumbnail of a video is enough to look for similar videos.

Results are mainly filtered through analyzing the color and shape of the object or person pictured. Upload a picture of a red car, for example, and Gazopa will find pictures of similar cars on the web – without you having to type any keywords (search via keywords is also possible though).

Since September 2008, more than 40,000 users have tested the service, which entered open beta today. And Hitachi America, the company behind Gazopa, has used customer feedback to improve the quality of search results, tweak the site’s design and add a number of features in the past year.

One of the most notable additions is the Gazopa iPhone app (iTunes link), which is pretty cool and lets you take and upload photos with your iPhone to quickly get similar images off the web. The app has all of the main features of the web version and is free. There’s also a new Gazopa Drawing Facebook application.

Gazopa now allows users to browse through Flickr images and filter out those without a Creative Commons license. When you hover over a particular image, Gazopa will show you its size, how similar it is to the one the search is based upon, licensing details and a URL that will take you the picture’s Flickr page. Another new feature is the news tab under which users can find images related to the latest news. Those images can be filtered by time (uploaded within one month, a year etc.), shape and size.

Granted these aren’t earth-shattering new features, but GazoPa has indexed over 60 million images so far that can be searched even if they have no or inaccurate meta data. The open beta version is still a bit buggy but more than OK for a test run. One major point that leaves room for improvement is that searching for inanimate objects with distinctive features seems to lead to significantly better results than searching for human beings that look similar. It would be nice if Gazopa could at least distinguish between men and women, for example, which isn’t always the case.

Asked what differentiates his service from Google Labs’ similar search service, Gazopa project leader Hideki Kobayashi said that Google doesn’t let users find similar images of all images displayed and that uploading a picture by yourself isn’t possible. Gazopa also competes with “reverse image search engine” TinEye, which, however, doesn’t necessarily look for “similar” images but tries to find exact matches of pictures instead.

Here’s a demo video for Gazopa’s open beta version:

Screenshots:

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Similar Image Search Engine Gazopa Enters Open Beta

A few months ago, Google launched an experimental new search project, called Google Squared, that literally tries to take all the messy, unstructured information on the Web and put it into neat little, labeled boxes.

It is still very much in Labs, but today it got better. Google Squared can now deal with four times as many squares of data, 120 up from 30. Columns can now be sorted, and results can be exported into Google Spreadsheets were the data can be played manipulated, charted, and so forth.

While Google Squared is much better, it is nowhere near ready for mass consumption. If you do a search for “planets,” for instance (see screenshot), it fails to identify Mars in its grid. The first result is Pluto, which officially is no longer a planet. While I too am still resisting the deplanetization of Pluto because of my emotional attachment to it, Google as a cold-hearted, just-the-facts-ma’am search engine doesn’t have the same excuse. And it is not just Pluto, it also lists Ceres (another planet also-ran), Jupiter’s moon Io, and the Asteroid Belt (which most definitely is not a planet). Mars definitely needs to go in there before the Asteroid Belt.

Is this the best Google can do against Wolfram Alpha and other newfangled search engines which also take advantage of structured data to present a deep set of facts for every query? Search for “planets” on Wolfram and it correctly identifies all eight (minus Pluto) including Mars

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Google Squared Gets Better, But It Still Can’t Find Mars

Google’s ‘unexplained phenomenon’ is generating lots of buzz this weekend. The company had done nothing but change its logo to a variant where one of the two O’s in its name was seemingly being abducted by an alien spaceship and tweet out a cryptic message that was translated “All Your O are belong to us,” a play on the good old “All your base are belong to us” meme. But it sure got people talking.

The Telegraph thought it had solved the mystery, but Andrew Healey begged to differ and offered multiple alternative answers and why they were all wrong. Search Engine Land editor Danny Sullivan got a vague statement from Google about the whole ordeal which mentioned an update would be coming in the following weeks.

This statement and the translated version of the Google Korea blog post about it (thanks GoogleUnexplainedPhenomenon.com) led us and many others to believe this is likely the first of a series of hints that Google will be using to provide clues to a puzzle.

And TechCrunch reader x pete offered a really good lead in the comments of our earlier post that could well have solved the mystery early.

Check out the website for the O Campaign, which is a “non-profit campaign forging alliances between the public, academia, corporations, and institutions in effort to efficiently channel resources for high-paced development of cutting-edge research in cancer prevention”. Looks like something Google would be involved with, right?

Now check out who is co-directing this admirable campaign: Thalas’ Joseph James Jung, a Silicon Valley entrepreneur and philantropist who currently spends his time collaborating with chief executives and boards of selected companies, universities and organizations. The first company that gets mentioned in his bio? You guessed it: Google.

Is this the explanation for the unexplained phenomenon and will Google be symbolically donating one of the letters of its company name to the campaign? Or just another wild stab in the dark?

The truth is out there, and we’re clearly not the only ones looking for it.

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Is This The Real Answer To Google’s ‘Unexplained Phenomenon’…

Digg announced a seemingly small, but rather interesting change on its blog today: It has added a “rel=nofollow” tag to every link on the site that it doesn’t trust. What this means is that all the spammers who submit their stories to Digg, are now basically out of luck.

Sure, all spammer who submit something to Digg hope that it hits the frontpage and brings a rush of traffic. But more important to them are the links associated with Digg. If a story is popular on Digg, it will also likely garner quite a few links back to it. But even if it doesn’t become popular, the link coming from Digg itself gives some weight to the spammy URL in a search engine crawler’s eyes.

Digg using nofollow has been a subject of debate since at least 2007, when the service was exploding with popularity. Around that time, Wikipedia decided to use nofollow for all of its outbound links. But what’s interesting here is that Digg isn’t adding nofollow to all of its links, and instead is only doing it for the untrusted ones.

“This work was done in consultation with leading experts from the SEO/SEM and link spam fields, in an effort to lookout for the interests of content providers and the Digg community,” Digg’s John Quinn writes today. This would seem to suggest that company realizes it’s still in the interest of most content providers to get the link juice that comes from Digg. It would also seem to suggest that it doesn’t want firestorm of controversy similar to the one it created with the DiggBar.

This move comes at an interesting time for Digg, as sites like Bit.ly look to be setting up to battle for who has the most interesting link data on the Internet. Twitter itself has been testing out the tracking of links from its site, though it claims to be just doing so for internal product purposes.

How Digg judges which sites they trust, they don’t say. But one would have to assume that these sites are different from the ones that are straight-up blocked from the service for being spammy. Untrusted links in comments, profiles and story pages will also get the nofollow tag as well.

[photo: flickr/brianware3000]

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Digg Starts Nofollow-ing Links That It Doesn’t Trust