Rumor in the SEM industry has it that Google is working on a new bidding model in AdWords that would enable advertisers to market directly to the AOL network. Currently, advertisers have a choice of bidding for placement on Google pages, or on Google plus content network pages (AdSense publishers). Many observers (including this one) have clamored for years for finer granularity in advertiser choice--particularly, the ability to isolate the content network or portions of it. AOL is not Google's only large partner, and I'm sure many advertisers would like to concentrate their bidding on other big properties that run Google's ads. But spinning off AOL as part of the new agreement, if that it truly in the works, would be a positive start to greater advertiser control.

At this point it remains unclear what will happen. Reportedly, AOL will sell ads directly to its pages using Google technology, and this initiative will be called AOL Marketplace. That seems to sketch out a different scenario, though, from an AOL-only option within AdWords.