Back when Google Instant was launched I figured it may be a game changer and it is. Here is an example how one of my SERP’s is being effected and I think in a negative way even though a searcher is searching for the correct term.
A couple things to understand about Google Instant first. Even if you fully and correctly type the term or phrase you know you want to see results for and do not hit the enter button on your keyboard or click the search button, those results are NOT displayed all the time! Fear the read squiggly line! This is one thing I really do not like about Google Instant.

So in the above example, my search was for the term Hexlight as one word together. The problem, Google Instant takes the top "suggested" search which is actually a different spelling and really different SERP’s and displays the search results for hexlite.
Even though as a searcher, I had my proper spelling, I am forced to either hit Enter or click the search button or rely on the results displayed. Here lies the problem… I think a lot of searchers are not aware that the search term they have typed, are not the results shown if a red line is displayed! Now you may notice the #1 SERP (search engine rank placement) above and how the tag used by the site focuses on the incorrect spelling hexlite even though the article is for the Hexlight product I am looking for.
So why is this a big deal for site owners?
I rank #1 on Google for the term Hex Light and # 2 for Hexlight. So even though a user may type the term they want to see results for, like hexlight, they are displayed results for a different term due to the suggest part of Google Instant. I have the important keywords covered and I rank well for the term BUT, not for the Google Suggest part of it!
What do I do about it from a site owners aspect? I have to put some focus on the hexlite (Google suggest term) because that becomes a new keyword due to the results for the search hexlight is really hexlite! With Google Instant, this has created a whole new monster IMO! You have "new" search results based on what the Google Instant "Suggest" box is displaying because those are the results being display sometimes.
You can see below I rank #1 for the search term hex light. I also rank #2 for hexlight but ONLY if the user hits the search button or hits the enter key on their keyboard due to Google suggesting the different spelling hexlite.

I had noticed a pretty big drop in traffic and this is the reason why! The majority of my searchers were finding me by typing hexlight (name of the product) but with Google Instant, my site no longer ranks #1 or #2 due to the hexlite results being displayed for the hexlight searchers. I still rank # 1 if searches type hex light with Google Instant on and Google suggests the term as well. In order for searchers to see my #2 ranking for hexlight they either need to have Google Instant shut off or hit the search key or hit the Enter key on their keyboard.
Confusing, I know!
I made a little adjustment today to help with the hexlite suggest keyword results but that has to be something you are aware of first, so now at least you are!
Google Suggest adds a whole new aspect of keyword research that will be changing all the time based on the "suggested" results Google is displaying for webmaster and the SEO game. Pay attention to it because it is important.


BullS
Seems like Google Instant is good for my sites as my googlea adsense has gone up to 30%
Bad for others but not for some.
Jamie Zoch
@BS,
The biggest thing to watch for is when Google displays a term with a redline under it! Even though the term maybe proper like in my example, they may be displaying different results. Considering many “brand names” are technically not words, I could see this happening a lot. New branding words etc. For sure something to be aware of at least so a site owner can cover it even if they hold a #1 ranking with a normal search to be aware of what Google Instant is displaying for different variations of search terms.