TWO INTERNET SEARCH ENGINES INK $100 MILLION DEAL
Ask Jeeves to Carry Paid Listings From Google
FTC DEMANDS HONESTY IN SEARCH ENGINE RESULTS
Wants Paid Advertising Revealed to Online Consumers
While the Mountain View, Calif.-based Google sells ads on its own site, Google hasn't been in the business of selling and delivering ads to Web publishers.
The move to diversify its business comes as advertisers have increasingly turned to search companies to market their wares on the Web. Google is also planning to introduce an ad-targeting program that would send consumers advertising that is directly related to their content searches.
"Search in many ways is the ultimate targeting medium," said Dakota Sullivan, vice president of marketing at LookSmart. "As a marketer, you're trying to get in front of people. With search, they're coming looking for you, it's the perfect combination of massive scale and absolute precision," he added.
Internet analysts say that marketers are finding search engines are an efficient media buy because marketers are paying only for the people who actually click and go to their Web site.
"We're seeing traditional brands beginning to plan paid search into their 2003 media plans," Mr. Sullivan said.
Google controls nearly 40% of the search market. Yahoo!'s recent acquisition of Inktomi is likely to make it a more serious player in search. Firms such as Search 123 are value-added resellers that buy listings from providers such as LookSmart and Overture.