(Continued)

The Redmond, Wash., software giant plans to unleash the next generation of its Windows software, code-named Longhorn, sometime in 2006. Many experts expect that Microsoft will seek to suffocate Google with a built-in function that can scour the Web or search any of a user's computer files, including e-mails and Word documents, all with a simple click of the mouse on a key word or phrase.

In other developments, Yahoo's new Messenger version 6.0 has the makings of an aggressive leap ahead for the company's real time communication technology and comes on the heels of product refreshes from rivals America Online, ICQ and MSN. With the upgrade, Yahoo has graduated it's Messenger software to version 6.0 – the client's first major jump in digits since October 2001.

A beta of the client puts entertainment features on par with the competition. Customers can now tune into LAUNCHcast Radio and occupy themselves with two-player games such as Chess, Checkers, Dominoes, Pearl Hunter, and Word Race.

On Wednesday, ValueClick launched ChannelSearch, a solution that enables advertisers to leverage the power of contextually-targeted ads and search. ChannelSearch simplifies the online media buying and management process, while providing advertisers with access to two online marketing channels.

Based on a flat-rate cost-per-click (CPC) pricing structure, ChannelSearch delivers targeted visitors through a combination of distribution methods.

Returning to Internet sales, and as was discussed earlier, online sales hit a new record: 2004's first-quarter estimate significantly outpaced online ad sales for the same period last year, when they accounted for $1.6 billion, a nearly 40 percent increase, the Interactive Advertising Bureau said.

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