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But we haven't talked about why more and more search engines are using Goto results.
Do search engines believe that GoTo results are more accurate for the end user?
or
Does it boil down to money? Does each search engine who chooses to use GoTo results get a cut of whatever the bid price is for that key word?
My personal feeling is that it boils down to money, but since I don't have a lot of experience with PPC type advertising, I am not sure how.
I was hoping to get some thoughts on it.
-G
I like GoTo, so I hope the figger out how to stay in business, AND that it doesn't cost us too much.
That's what I remember, too. There was another one of those "buy-ins" about the same time... Jeeves, maybe?? I don't think many realize that much of this is GoTo spending money for exposure.
This might work for the biggest of the boys, like AV, but too much fractioning of the ppc market would not work, IMO. One of the joys of GoTo is that one account gets widespread results -- just like placement in Ink or LookSmart ripples out far and wide. I think the labor involved in maintaining 20 or 30 different ppc bidding accounts would quickly become prohibitive to many site owners.
I'm not so sure the model is solid. IF GoTo was (is still ??) PAYING to be included in the other SE's, they may be establishing "brand" but that may come at too high a price.
Absolutely -- even Amazon is now moving past the "we're only branding" stage.
And what might be the value added to a search engine, such as AV, for including GoTo results if GoTo doesn't pay them? Not much that I can see. Of course, GoTo could move to a model where they only pay per click ;)
Me either, except they may be taking notes and planning their own in-house replacement.
Webmasters and SEO-types have accepted GoTo and find it manageable, but I think we're succumbing to that "everyone is using it, it must be successful" mentality (a.k.a. the Amazon financial mindset) and overlooking a gaping hole in the balance sheet. All I can say for now is that I think they have enough brand to get another round of financing and I doubt that June will be the death date. Beyond that my crystal ball gets murky.
Yup!
Now mutiply that by 20 to 30 clients and you had better raise your maintenance rates.
So...is that how GoTo is selling it to the other search engines? I can understand some of the smaller search engines who just get Inktomi results to use this GoTo deal, but I just can't believe that a search engine like Alta Vista would go for it unless it were one hell of a deal.
And: Will Goto actually make more money from it even though they are getting less per click? Or will people view the results as just another advertising banner and ignore it?
Maybe I am dense, but I don't see what other search engines would see in GoTo results...
-G
Selling listings is nothing new for AV, they tried it publicly once before on their own but were unsuccesfull, and with their refusal to use goto for certain industries it sounds like they've been doing it privately for a while. It's all about the money. Now that the whole banner ad market is crumbling SE's need to find new revenue sources.
"Will Goto actually make more money from it even though they are getting less per click?"
This is yet to be seen.......
GoTo Falls to New Low, Again [kagan.com]
[irconnect.com...]
a. goto is desperate, and throwing money at major sites for exposure.
b. some deals are flat rate, some are rev-sharing
c. the major portals are dipping their toes in the water, to test the revenue potential of the model without having to build the infrastructure first
d. if they decide its "worth it" they will drop goto like a hot rock and build their own infrastructure in-house
e. goto will then effectively be SOL.
i personally believe the other portals WILL go with the model too (they may modify it a bit, but i think they will keep it in principle). i also believe this spells bad news for goto, unless they effectively reposition themselves as advertising software sales/licensing, ala the doubleclick netgravity model.
lastly, i think that the fact that AV is going with goto validates that the ideas time has come. they were the first major to try it, but the timing and implementation wasnt right.
major factors that make now the right time:
(a) search listings have been increasingly diluted over the past year (= less resistence from searchers);
(b) banners are sucking wind
(c) cpc is hot; SEO is hot. seo/cpc makes sense.
the key difference between the way that AV and everyone else is doing it is precisely in the fact that they DONT show results for every search. i think this is AV learning from experience. effectively, with the goto model they can now offer premium text advertising for EVERY search, not just for their premium content sponsors.
dont think of goto as a search engine, think of it as PAID PREMIUM ADVERTISING. that's how i think the model is currently, and will continue to be implemented by major portals (whether or not goto plays a part in that implementation).
the good news for SEOs? PPC will NOT replace spiders. it will be a compliment. top 3 "sponsored listings", etc. [collective *sigh* of relief from SEO community... :)]
of course, that doesnt mean SEO is going to get any easier... [collective *grumble*... :)]
thus prophesizes seoboy of the future.
your mileage may vary.
no money-back guarantee.
happy holidays!
