I love it :)
This also brings into focus their increase of the minimum bids. Even if a few advertisers balk at paying the higher amounts they will still keep more of the overall income.
|...advertisers with the benefits of consolidated reporting, billing, and a single interface for campaign management for both paid placement and paid inclusion products." |
Also perhaps an attempt to bring PFI to a current PPC captive market. Anyone, with no SEO knowledge, can set up an overture PPC account, but you need a little bit more web experience to go for a PFI. Its my guess that overture will try hard to convert PPC current clients to PFI clients.
Now that was a very clever move on Overture's part. Fast has so much more to offer them than Alta Vista. Overture execs are obviously gearing up to really butt heads with Google.
IMHO, I think it is too little too late though. Alta Vista has been all but abandoned by the average surfer and Fast never got there to begin with. It would take an MSN , AOL or Yahoo buyout to really kick this chess match up a notch. Don't count out AOL or even Yahoo in this thing. They still have options here.
The Googleplex must be buzzing! No time to rest on your laurels GG. I hope you guys have something really interesting up your sleeves to counter what appears to be an all out attempt to dethrone you as king of the Search Engines!
Heck, who knows ... maybe Google will buy out Overture and take home the majority of pieces! Then it will just be Google, Yahoo, MSN, AOL & LookSmart.
OH MY GOD!
I wonder how high ppc prices will go? Is there still a $50 limit *wink*.
There is going to be a new fee for inclusion in the pay per click SE: PPPCFI (Pay Pay Per Click For Inclusion) *wink*.
a few searches on words such as:
overture, fast, alltheweb, Alta Vista etc etc shows me Google is quite far ahead in the eyes of Joe Public.
There you have another $, they can use Altavista and Fast's logfiles, so they may be able to provide even better search suggestion results.
As mentioned by several in this thread, "traffic acquisition" might explain part of it.
|Overture's "traffic acquisition costs," or TAC, which describe the amount of revenue Overture shares with its search-page partners, rose to 62% from 59% a year ago. Overture estimated that these costs would rise in the first quarter to 63% or 64%. |
|Overture will acquire FAST's Internet business unit for $70 million in cash, as well as performance-based cash incentive payments for up to $30 million over three years. |
Pandia [pandia.com] says OV will take over Fast datacenters in Sacramento, Cal. and London.
Performance based cash?
Looks like a slept through some interesting news. Will be very interesting to see what products are on offer from Overture now that they have 2 engines that were both offering XML / PFI.
2003 is shaping up to be a lot of fun indeed.
Sounds to me like they bought Altavista for brand name and patents only knowing the search technology and algorithm were way outdated. Instead of spending years getting it up to par, they buy Fast and now they have the best of both worlds. Altavista name with decent Algo's.
I expect to see the Altavista and Fast PFI programs combined as they dump Alta junk search and create one database on Fast technology.
[edited by: JeremyL at 3:34 pm (utc) on Feb. 25, 2003]
>> Comparing it to google, that makes Alltheweb as www2 and www3 and AV as www. Or something along those lines... <<
That's what they imply, but it is no doubt untrue.
They COULD be gearing up for portalization, but you need market share for that to work, and they have no natural constituency. Neither AV or FAST will deliver that for them. They would need to make yet another acquisition.
One of the big downsides for me is that Overture traditionally have no respect for search relevancy or quality. Unless that has changed, and I see NO evidence that it has, they will wreck both AV and FAST in terms of quality by forcing ads in there.
This of course would have a knock on effect as well if they did take the portal route. The portal would probably be as useless as MSN for search with far too much ‘monetization’ (it’s in their DNA).
The bit in brackets is critical by the way…. these guys are money money money. Expect anything they touch to be wrecked. Mark my words!
Whoever earlier on said that ms could buy OverFastAlta is I believe right on the money. This is exactly how ms works - hence why they haven't made their move. They are sitting back, looking for the most stuffed turkey and then aquiring it when the time is right. Look at their past web and software company aquisitions, its a pattern.
Saddly, I only see such an aquisition by ms as tougher times ahead for 'small guys' to get anywhere and succeed on the web. Everything will be *so* profit driven, pop-ups will be the least of your net worries in the years to come. And any company without a massive ad budget to feed ms or its competitors (which will need to keep up with ms to keep share prices up) - will be doomed. Sounds gloomy, but I don't think too out of line.
Altavista still have a recognizable brand and FAST have a Superior Search Technology comparable to google ....
Integrate FAST technology with Alta and with a Big Marketing Campaign i think OV can create the next big Search Engine ...
Yuppers, especially when both MSN and Yahoo start running all Overture/Fast/AV results later in the year. ;)
I wouldn't discount AV tech to easily. They have some good features over there. Throwing together the clustering from AV with the natural language capabilities from Fast could give Google a run.
And that's just two things.
Fast with regular spidering, pepped up with AV tech = better than Google.
That is, if OV allows for a constant development and improvement. And if the techies from all three companies work together.
Mike, I'm still sitting here shaking my head.
What a game of chess this is!
So I guess this explains why they raised the minimum bid...
This will be interesting to watch...I hope no one buys out google.
Search engine soap opera.
Maybe if the opera is jr's Dallas. There's been more wheeling and dealing the last three weeks than the last year.
They just released Q4 and fiscal year 2002 results [fastsearch.com]
|FAST Achieves 24% Revenue Growth in Q4 vs. Q3; |
26% Growth for Full Year Earned Positive Adjusted EBITDA of $3.9 million in Q4;
$13.3 million for 2002
Making money all right.
|He's number 1 for his name on Google - with paper links etc. |
That sentence speaks volumes.
What's going to happen amid all this flurry of PPC based engines buying free engines out is a government inquiry.
I doubt many people would cry if the Federal Trade Commission decided to step-up and demand free listings center page and only side panels for paid inclusions similar to what Google does already.
PPC has gotten out of hand and the verification of true clicks is harder and harder to know. Overture with their 'patent pending' click-through protection is a joke.
Ouch!...interesting move on Overture's part though & certainly one which certainly adds considerable weight to them as a whole...whatever next?!?...;)
amazing move ......
Someone said "Now watch Overture get bought by MS," but even better watch Overture get bought by Time-Warner with or without AOL.
Even though it's easy to make fun of AV's technology, each engine no doubt has it's positive sides. I bet AV's techies and Fast's techies are looking forward to some great talks.
definately room in the market now....who's going to create the next big engine? :-)
I like what people are saying., I think Overture is making HUGE plays....eliminating the players and trying to go after google....I think MS will buy google and incorporate with MSN somehow.....
So are the google vc boys going to push for a float. Their worth must have just dropped today.
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