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AskJeeves Extends Advertising Agreement with Google through 2007

     
1:09 pm on Jul 26, 2004 (gmt 0)

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[prnewswire.com...]

....[jeeves] extended
its relationship with Google as a provider of sponsored advertising links on
Ask Jeeves' global search and portal brands through 2007. The extension renews
the agreements with the Company's flagship sites, Ask Jeeves (Ask.com) and Ask
Jeeves UK (Ask.co.uk). Google's sponsored links product complements Ask
Jeeves' own suite of advertising products, including its proprietary paid
listings product and branded ad units.
12:28 am on July 27, 2004 (gmt 0)

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This is good news for Jeeves, especially as the terms of the agreement do not appear to have changed.
8:21 am on July 27, 2004 (gmt 0)

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Yes, I believe that Ask Jeeves will continue to have a very good deal with Google.
11:45 am on July 27, 2004 (gmt 0)

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Why? exactly have they done this, i would have thought they would want to brake away from google!
2:52 am on July 28, 2004 (gmt 0)

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Caine

The money. By all acounts the deal is very nice for them, with the lineball share going to Ask Jeeves. This is a no-cost option for Ask Jeeves. No sales, no customer support, minimal technical issues. A great deal for them.

This is also important for Google - it provides them with some nice positive news pre-IPO and secures one of the revenue streams for them.

Warren

8:08 am on July 28, 2004 (gmt 0)

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Warren,

what you say makes sense - but why would AJ want to promote G, also why would they only want the x%, rather than the 100% + Brand.

12:56 am on July 29, 2004 (gmt 0)

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Caine

They don't really do a strong job of promoting Google.

For AJ, it is all about building traffic - this is what they have been focusing on for the past 18 months or so.

To build their own PPC program, the costs would be quite high. And the uptake of advertisers would be slower.

The other thing, is how many advertisers do Adwords so they can appear in Ask Jeeves? I would suggest it would not be that many as most people would do Adwords to get into Google. This would increase the average click price - something that an AJ owned and operated program would not have initially.

Just my thoughts.

1:25 am on July 29, 2004 (gmt 0)

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I'd say AJ took a look at their financials and momentum, cosidered it against the uphill battle to convince SEM's and mom & pops to jump on board.

With Google they have a vast pool of advertisers. On their own... who knows how long it would take to build a viable pool.

6:51 am on July 29, 2004 (gmt 0)

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martinibuster

That is what I was trying to say (it was early in the morning) and you have summed it up very nicely :)

Thanks.

7:27 am on July 29, 2004 (gmt 0)

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Good points Warren and martinibuster.

They could always try and buy FindWhat though.

7:58 am on July 29, 2004 (gmt 0)

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Good news for both it seems. Google don't even mind Ask advertising on adwords.
8:32 am on July 29, 2004 (gmt 0)

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sem4u

I had thought along similar lines when they have a lot of $$s in the bank. But if you look at where they have spent this money, it is to increase their reach and services to get more traffic. i.e. email, desktop search, a portal.

So now, I don't think this is going to happen. I would expect to see them grow market share (search wise) and try to capatilse on this.

Warren

8:42 am on July 29, 2004 (gmt 0)

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Yes, I think they were wiser to buy up some search properties to increase their market share.
1:49 am on Aug 2, 2004 (gmt 0)

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I disagree, I think it was a poor attemt on their part to increase market share and revenues. Their amount of direct advertisers are very low for them to increase market share. Esspecially buying an adware company for half a billion. The only market share that is increasing is Googles'(Even though it didn't) market share.
1:27 pm on Aug 2, 2004 (gmt 0)

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Ask Jeeves has acquired properties where people search (not to mention do other things).

This properties will show the Teoma search results. With Ask Jeeves ceasing paid inclusion this won't improve revenue, but rather is a branding exercise.

However, along with showing Teoma results, Adwords will be shown. This is where the additional revenue will come for Ask Jeeves. It won't be new revenue to the industry - as in new people clicking on results who previously wouldn't have - but rather new revenue for Ask Jeeves because previously someone else was collecting the share on the CPC. So a redistribution of revenue if you prefer to Ask Jeeves.

5:48 am on Aug 6, 2004 (gmt 0)

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The article didn't state if the relationship was exclusive? Can AJ bury google's ads in 2006 if they have their own PPC program to replace it with at that time (along the lines of what Yahoo did with Google)?

Bottomline is that AJ needs more market share. At this point, their focus is porbably on making the money they need to do that and on improving their results to capture the loyalty of the new visitors they put themselves in front of.

By accquiring market share now, they can always develop their own PPC program later. But spending the resources to develop a PPC program now won't do them a lick of good if they can't spend the money they need to increase their market share and searcher loyalty.

Seems the "why" question was asked of Scott Garell [clickz.com] and he replied:

It's a great partnership. Our volume drives more people into their network, and we think it's better to be building our site around the user experience, so that when people come, they're getting what we consider to be a better and different experience. It's good for advertisers and good for users.