GOOGLE insisted yesterday that it would not compromise the integrity of its search engine as a result of its $1 billion (£574 million) tie-up with Time Warner’s AOL.

The search engine, which built its reputation on a simple, unbiased search service, will help to make AOL content “more accessible” — allowing previously hidden information to turn up in searches.

The agreement, similar to one between Google and Yahoo!, is meant to help AOL to sell more advertising by driving traffic, via Google’s search results, to less well-known AOL sites.

It is not clear exactly how far Google will help, but there is already a thriving industry in “search engine optimisation”. This aims to boost commercial websites’ position in search results by taking advantage of the way in which the engines rank their results.

Eric Schmidt, chief executive of Google, is understood to have told staff that the company’s search and ranking process will be unchanged. The message was repeated by Time Warner insiders, who said that the idea was to “not to favour AOL but to help AOL content be positioned appropriately”.

Despite that, it is clear that AOL will feature more prominently on Google searches. The internet provider has long provided a proprietary service in which most of its content was out of reach of Google’s technology.

Time Warner and AOL will also get the opportunity to put banner advertising on the Google website — although not on the Google.com home page or on the search results, which are to remain simple and text-based, for speed.

Instead, there will be advertising on some of Google’s specialised services, such as its picture and video searches, areas where executives argue that consumer expectations are different. That will allow Time Warner to promote a film, such as the latest Harry Potter, in a way that Google has refused to allow before.

Key to AOL’s strategy is boosting advertising income, partly by using Google to increase the site traffic, to help it to offset the severe decline in internet dial-up subscriptions. In the third quarter, advertising increased by 28 per cent, but not enough to offset the 10 per cent decline in its larger subscription business. Google’s 5 per cent stake in AOL means that it has a financial incentive to ensure that the Time Warner unit improves its chequered record.

In the middle of 2008, Google has the right to force Time Warner to float AOL, although that right was not spelt out in the press release issued yesterday evening in New York.

The concession is an important protection for Google. Time Warner can block the float if it buys out Google at a “fair market value” in either cash or shares; if AOL’s performance improves, then Google also stands to benefit.

• Time Warner named Jeff Bewkes, 53, as president and chief operating officer of the company, after the retirement of Don Logan, 61. Previously Mr Bewkes and Mr Logan had split operational responsibility for the company’s divisions. The promotion for Mr Bewkes makes him as the natural successor to Richard Parsons as chief executive of Time Warner, although Mr Parsons has no plans to leave the business.

  Previously, Mr Bewkes ran Time Warner’s film and television businesses, a job that he had undertaken since 2002.

  For more commentary on Google and AOL see John Battelle's Searchblog.

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