Paid Search - Is It For You?

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2003 has already been a banner year for the search industry. Since the rousing start in January, Yahoo announced that it had purchased Inktomi, the search industry has been bustling. Search competition has become a spectator sport, as the top two search companies, Google and Overture have rallied with acquisitions, a lawsuit, new technology and shuffled clients.

As you may already know, Google's sponsored results compete directly with Overture's pay-per-click model. When visitors to partner sties click on these advertising links, either Google or Overture will pay its partner a percentage of the fees the company receives from advertisers.

In case you haven't been following the news, here are a few highlights in the search world.

Search In the News

• Yahoo purchased Inktomi's search technology for $235 million. Although Google provides Yahoo's current algorithmic search result structure, it will not likely jeopardize its relationship with Overture because it still needs paid search. Analysts predict they will eventually replace Google with its own in-house technology built from the Inktomi platform.

• This move puts pressure on Google, whose own site competes with its portal partners, whereas Overture does not compete with its partners because it doesn't operate a portal of its own.

• Last week, Google won a megadeal with Disney's Go.com, taking the account from Overture. Google will now provide algorithmic and sponsored results for Go.com searches.

• On February 18th, Overture acquired Altavista. One week later, Overture announced its acquisition of Fast Search and Transfer (FAST; http://www.fastsearch.com), including FAST Web Search, AlltheWeb.com, and FAST PartnerSite. It will now provide three types of search to its affiliates:
• Overture's paid placement product
• Paid inclusion in Fast and AltaVista
• Algorithmic search

• "Search is in a rapid growth phase which we believe will continue for years to come," said Ted Meisel, President and CEO of Overture.

• There are only two top Web search engines that do not operate under a strictly advertiser/sponsor-driven business model: Google and AskJeeves' Teoma.

Search news like this has illuminated the search industry and prompted further business and critical support of the paid search model. Advertisers are shelling out for paid placement. Even altruistic Google has gotten into the act with AdWords and its new contextual advertising. There seems to be no end in sight for paid search as we know it. Even last year's Supreme Court case regarding disclosure of paid results did little more than encourage search companies to more obviously label paid listings versus non-biased search listings.

In addition to paid search success, a new race for more targeted advertising has begun. Google recently announced a new distribution model for its AdWords™ service: content-targeted advertising. This new service will display AdWords on web pages related to an advertiser's chosen keywords. It gives AdWords customers greater exposure and reach without extra effort. Overture is working on a similar model.

In the paid listings world, Overture has experienced great financial success, proving the viability of paid search. The system works for advertisers and for users. Users arguably get some of the best sites on the Internet as results, and businesses benefit from keyword-targeted advertising. If it works for the Internet could it work for individual sites? A look at the latest trends may provide enlightenment.

More and more retailers are seeking diversity in advertising dollars by shifting to vertical markets, citing greater efficiency in delivering qualified leads and customers and lower acquisition costs, according to Forrester Research. They project that fifty-seven percent of all online advertisement spending will flow from portal deals to vertical sites and affiliate networks by 2004.

Apply the Technology to Your Site

With all the hoopla over paid listings, more vertical sites are realizing the potential of implementing their very own paid search model.

Few companies could afford to replicate the Overture paid search technology for their own use. And there's no need. Vortaloptics' custom search technology enables organizations to adapt the search tool to fulfill their financial goals while satisfying customer demands.

Vortaloptics empowers you to employ paid search on your site. The technology offers you complete on-the-fly control over search listings that means that you can "force" by keyword any URL to the top of the results at will. These paid listings can overshadow your own content if you wish, or you can build an engine exclusively on the premise of paid results. Marketing your solution is essential, but it doesn't necessarily require a substantial budget. We currently have clients that passively market the paid search option on their site and are generating more revenue than ever before.

Need to boost site revenue? Paid search may be the answer. Consider the success of Overture and contemplate applying the technology to your site. Find out more by contacting a Vortaloptics representative.