Steve Ballmer, Microsoft’s CEO, gave an interview last week that was published by the Washington Post. He touched on a variety of factors; the attempt to merge with Yahoo, the constant chase after Google - but the focal point of his words was the future.

Not just the future of advertising, or the future of the media. Not even merely the future of search itself, but the concept that in 10 years, in his opinion, we are going to see paper newspapers, magazines, etc. disappear - to be replaced by an completely electronic delivery system.

Ballmer believes that we are on the brink of a complete merging between search, advertising, media and communications that will coalesce as the different elements become more and more entwined.

Steve, with characteristic gestures and hand motions, explained his concept of how the world of consumerism will change, as “advertising, commerce, community and content all blend.”

The CEO went on to define advertising as the ‘grease’ that runs the engine, and commented that even the line between advertising and content is becoming blurred, as advertising is a form of content in and of itself. Much content, in turn, is loosely used as advertising.

“In this world, ” Ballmer continued, “there are these incredible pieces of software that know all about the publishers who want to sell ads, the advertisers who want to buy ads, and the users who want to consume the content and advertising .”

He put forth the idea that as the engines collect more and more data about behavioral patterns of users, advertisers and publishers, they will get “smarter and smarter about delivering the right ad at the right time.”

Steve’s concept is sweeping, really; he envisions a world where he can aim his remote at the screen while watching a golf tournament, click on Tiger Woods’ golf ball, and be greeted with a pop up advertisement offering Nike Elite golf balls for sale.

The media provides the publisher with the venue to sell ads to the advertisers, who promote the products to the consumer, who feeds on the advertising, the content, the product and the media. And the cycle continues, interwoven to the point where each component is almost indistinguishable from the next.

Ballmer ties it all together with the idea of search, interconnected with the ad platform that supports not only search itself but all content. Search is the future, supported by advertising, aided by content and powered by the ability to provide the user with information, products and communication.

“We are number three,” he said. “We probably have, really, the long term best prospect of putting competition to Google, who is clearly number one.” Ballmer went on to touch on the whole deal with Yahoo, though he painted it more as a friendly “lets get together and do this” proposal than the hostile takeover many perceived it to be.

Microsoft has launched so many new plans and applications over the last month that most people would view them as unconcerned about the failed deal with Yahoo, but there is no doubt that they are gearing up for a strong push to overtake Google as king of search land.

For anyone in the seo world this is like watching the latest saga in a sitcom.