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Advertisers paid GoTo an average of $0.17 for each paid introduction during the quarter ended December 31, 2000. This compares with an average of $0.17 for each paid introduction in the fourth quarter of 1999 and $0.21 in the third quarter of 2000.
"We had a blow out quarter, doubling paid introductions to 228 million from the third quarter to the fourth quarter," said Meisel. "Not surprisingly, this significant increase in traffic had an effect on our average price per introduction. We're confident that as these new leads are absorbed by our advertisers, we will see an increase in this metric as well."
I think that will be the real acid test of the GoTo model, they certainly need to get the average up.
They certainly seem to have gained a measure of acceptance here in the UK, which to be honest surprises me, thought they would fall flat on their face.
IMHO they need to do two things:
Drop the "iffy" partners, even if it means taking a short term hit on sales.
Stop the human review of every ad, it must be a huge drain on resources and looks very inefficient compared with the Google AdWords program. They should have a search quality team to ensure that the listings are appropriate.