Update: Rumors AskJeeves will Announce a Pay-Per-Click Program
Tweet
Share
E-mailGet Alerts IACI Hot Sheet
Join SI Premium – FREE
We've contacted press contacts at IAC/InterActiveCorp (NASDAQ: IACI) AskJeeves unit on the talk that they will be introducing their own internal pay-per-click program shortly to replace, in part or fully, search results that now show up from partner Google Inc (NASDAQ: GOOG). The contacts at AskJeeves simply told us that they have not announced a pay-per-click program and cannot comment on the rumors.
From what we've been hearing all day, this may be beyond the 'rumor' stage - but as would be expected the 'no comment' phase must be used until an official press announcement is made.
While an 'official' announcement may be on the horizon, until we get one the speculation will run rampant. According to the rumors monger, AskJeeves� plan will undercut Yahoo! (Nasdaq: YHOO) and Google, offering a $0.05 minimum bid. It is expected the sponsored listing results will likely be included with Google results at the site to start. The program is also expected to be similar to the Google AdWords system, using relevance to display results. According to the talk, the firm will launch their program on August 1.
What effect will this have on Google? According to one analyst AskJeeves is estimated to be less than 1.5% of Google's net revenue in 2006. It is not clear how much AskJeeves contributes to the bottom-line at Google.
A 1.5% revenue loss at Google would be the maximum immediate loss for the company if AskJeeves ended the entire pact, but the bigger question would be if Ask Jeeves could ultimately take market share from leaders Google and Yahoo! A dominant market position for Ask Jeeves would seem unlikely according to many, but some say IAC�s CEO Barry Dillar is the 'X' factor. Dillar has proven time and time again that conventional thinking may not always be right.
From what we've been hearing all day, this may be beyond the 'rumor' stage - but as would be expected the 'no comment' phase must be used until an official press announcement is made.
While an 'official' announcement may be on the horizon, until we get one the speculation will run rampant. According to the rumors monger, AskJeeves� plan will undercut Yahoo! (Nasdaq: YHOO) and Google, offering a $0.05 minimum bid. It is expected the sponsored listing results will likely be included with Google results at the site to start. The program is also expected to be similar to the Google AdWords system, using relevance to display results. According to the talk, the firm will launch their program on August 1.
What effect will this have on Google? According to one analyst AskJeeves is estimated to be less than 1.5% of Google's net revenue in 2006. It is not clear how much AskJeeves contributes to the bottom-line at Google.
A 1.5% revenue loss at Google would be the maximum immediate loss for the company if AskJeeves ended the entire pact, but the bigger question would be if Ask Jeeves could ultimately take market share from leaders Google and Yahoo! A dominant market position for Ask Jeeves would seem unlikely according to many, but some say IAC�s CEO Barry Dillar is the 'X' factor. Dillar has proven time and time again that conventional thinking may not always be right.
You May Also Be Interested In
- Chevron Close To A Deal To Expand Operations In Venezuela - WSJ
- Pentagon Is In Talks With Venezuelan Mogul For Massive Oil Deal - Bloomberg
- SEC Subpoenas Banks For Details On Situational Awareness - NYT
Create E-mail Alert Related Categories
Insiders' Blog, RumorsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
