It been a little over a month since "Google Instant" has been released to the public, what effect if any does "Google Instant" search have on SEO and SEM based?
RELATE LINK >> "Google Instant": http://www.google.com/instant
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Logically speaking, long tail searches should see less traffic as users will be more likely to find, and click on, results before they get to finish typing in their entire search term. As a result those long tail searches will be less likely to happen and thus less able to deliver traffic.
As for SEM, it will affect the amount of impressions you see in your Adwords campaigns.
I would say the biggest impact this will have is it will give Google huge potential to influence keyword direction based on what they suggest to a user when mid-typing. Rather than an SEO finding keywords or niche keywords based on research, the strategy could consist of tailoring content to try and appear underneath the Google suggested combination of keywords. This would result in more websites chasing a smaller set of keywords, which in turn would of course make for even stiffer competition.
In my opinion, Google Instant Search is a big help to internet marketers / SEO specialists. Saves you time, you get an idea of what people are searching for and how to and how Not to structure their pages.
I created a small video about it at http://bloggerkhan.com/how-google-instant-search-affects-seo/164
See if it helps.