Last weekend, SEO consultant Rob Ousbey experienced something new while performing a Google search: results were updated in real time as he entered keywords, changing in the blink of an eye before he even pushed ‘enter’. This streaming search results trial is speculated to be a part of Caffeine, Google’s latest project to make the Web even faster. (See it in action here)

But what does this live update of search results mean for the future of paid search?

Some believe that refining a search results page as a query is typed will make users completely ignore paid results and consult organic listings instead as they will appear more relevant. Some search experts also express concerns over how the CPM-based (cost per thousand impressions) pricing model will work when results are updated in real time. Will an impression count before a user even presses ‘enter’?

While some people believe this new feature will have adverse effects on paid search, it is my belief that the results will be mostly positive. Allowing users to see results update in real time as they type in a search query will allow users to find exactly what they are looking for. If the combination of keywords they’re entering is not producing the desired results, the user can alter their search in order to retrieve the information they’re seeking. This increased level of interactivity will increase relevancy of ads being displayed, directly resulting in more qualified clicks and an increase in ROI for advertisers.

This exciting new feature shows a lot of promise in the future of search engine marketing; however, there are still a lot of questions that remain to be answered. Will impressions be counted even before a user hits ‘enter’? How will long tail queries be affected?  Will organic listings witness a surge in clicks, while paid results are left in the dust?

Only time will tell.