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Oveture & Their Attempt @ Domination-Short Lived?

Overture's Exclusion of Competition Will It Cost Them?

         

knowz

7:03 pm on Dec 9, 2001 (gmt 0)



Go to one of the search engines or directories where Overture's feeds are sent to. Type in "pay per click search engines". In those "sponsored listings" see any pay per click search engines listed??? Of course not. Do you know why?

One way or another, Overture's exclusion of their competition from their search results &, those results excluding Overture's competition on non pay per click search engines, will end.

This is nothing more than Overture attempting to ensure that their competition or, what could potentially become "real competition", is excluded from prime advertising space at major search engines & directories.

If Overture were not concerned about competitors, they would not have excluded pay per click search engines from their database. This is fine by the way. It's their business. But, when they start feeding results to other engines & directories & those feeds block out their competition, that we guarantee will lead to lawsuits. It's anti-competitive. It's search result, keyword/phrase manipulation in order to block competition, outside of Overture's own domain.

We started a petition started which seeks an end to these alliances should Overture choose to continue with it's attempted monopolization of the pay per click/pay for performance search engine industry. All kinds of legal things are getting started because of their practices regarding this.

Overture, it's great that you started this type of advertising. That does not give you the right to stomp on your competition through alliances which, allow your exclusionary anti-competitive behavior to continue & block out competition.

Competition is good. Not allowing your competition to compete, that's just ugly.

It won't stop us &, we hope it doesn't stop the other "little guys" who, are simply working hard & trying to make a living just like you.

I would appreciate feedback from all of you on this issue.

Are we seeing a pattern here that others do not?

Thank you.

Brett_Tabke

11:28 am on Dec 10, 2001 (gmt 0)

WebmasterWorld Administrator 10+ Year Member Top Contributors Of The Month



Welcome to the board knowz - great post.

Since I follow the "se" and seo related kw sets, I noticed Goto getting kicked out of many of the se's about a year ago. You'd think as the internets largest advertsing broker, they would be everywhere under certain kw sets. They are there - about rank 1000 at best.

Most of the se's play games with each others listings. Just last month there was a pretty rude listing showing as #1 for "google" on AllTheWeb. They cleaned it up after they heard about it, but that sort of thing happens very often. There were a couple of se's that would outright redirect traffic to their own home page on "yahoo.com".

Sorry, this is nothing really new. The only thing that is new, is that Overture is taking it to the logical progression wrt pay per click engines. I don't see any legal grounds to challenge them on their actions.

dvduval

4:05 pm on Dec 10, 2001 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



I'm just waiting for another PPC besides Overture to get top placements on a major search engine. I think competition would be good for us, the consumers.

I think Kanoodle might have a chance. With high listings on Lycos and Alltheweb they might do well. If only alltheweb could get better traffic...thay sure are a good engine.

FindWhat has always been the distant 2nd runner up. I think they should change their color scheme. It doesn't seem professional to me.

I predict Altavista's new PPC listings with logos, additional links, etc. may prove to be a peek at new PPC functionality of the next year.
Of course, Altavista probably won't be the leader.

I'll say it again...
I can't wait until someone besides Overture gets some top listings on a major engine. It's bound to happen. Overture seems to be loosing it's ability to service customers and getting overun. There is room for a competitor.

If you are a decision maker at MSN or AOL or Yahoo, sitting in your chair reading this, I say to you:

Give another PPC engine a try. Bringing about healthy competition will be good for you too, especially if you are helping provide it. Check out FindWhat, Kanoodle, or Ah-ha. And don't dare lift your pen to sign exclusive deals. Make them earn your business every month.

click watcher

4:42 pm on Dec 10, 2001 (gmt 0)



sorry i just don't see how ppc competition helps the SE or portal,

with a near monopoly player like overture then bid prices are driven up because they are the only serious provider,
and as the SE/portals that show overture results are on some kind of revenue share they have nothing to gain by generating competition and possibly lower prices ... the only way they would gain is by running their own scheme and keeping all the money (if cost effective)

dvduval

5:23 pm on Dec 10, 2001 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



With competition, the search engine could better leverage their percentage with PPC providers.

For example, if Overture gives 50% of the click revenue to AOL and Kanoodle comes in and offers 60%, we have leverage.

So this would help revenue for the search engine AND webmasters would have more leverage, because there is a choice of where they want to spend the money.

Eric_Jarvis

5:36 pm on Dec 10, 2001 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



but where does the end user come into the equation...or is the assumption that the poor sods will use any old search results equally happily without caring how they are put together?

if so, all the evidence seems to point to the opposite...or is Google's growing dominance of the SE market not relevant for some reason?

I've heard this sort of guff for a while...it seems to assume that the only players in the search game are search engines, PPC companies, SEOs and webmasters

dvduval

5:59 pm on Dec 10, 2001 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



You pose old questions...
Do you refuse to watch television because of commercials?
Do you refuse to listen to the radio because of commercials?
When you use the yellow pages, do you ignore the ads and just look at the text listings?
Is it possible that ads are often heplful to the consumer?
The answer is... people keep watching TV, listening to the radio, reading magazines, using the Yellow Pages, and yes, using search engines. As a matter of fact, it could be argued that search engines must use advertising to stay afloat?

So leverage away...
so that search engines, PPC companies, SEOs and webmasters can benefit.
...and maybe consumers might see an ad for a product they want to buy every now and then
ESPECIALLY if competition is more prevalent

click watcher

6:51 pm on Dec 10, 2001 (gmt 0)



For example, if Overture gives 50% of the click revenue to AOL and Kanoodle comes in and offers 60%, we have leverage.

sorry who are we?? aol would only agree to the deal if it made them better off (60% of a low gross is less than 50% of a high gross), so ppc bids on kanoodle would need to increase: webmaster = loser not gainer

but where does the end user come into the equation...or is the assumption that the poor sods will use any old search results equally happily without caring how they are put together?

couldn't agree more, IMO this attitude is precisely why google went massive, some people are ignorant and naive but not all,

the ppc model must work for some, (unless they never do their accounts) but then the shopping channel etc also works

dvduval

8:41 pm on Dec 10, 2001 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



If AOL put another PPC in their results, then that PPC would have a higher gross. That's a given.

Yes, Google is wonderful, but even Google is running an "adwords" campaign.

Advertising is part of life. If you want to limit competition, and keep the money in the hands of the few, be my guest.

Competition encourages competitive pricing and challenges the advertisers to do a better job serving both their customers and their clients.

Why do you want to limit competition?

Doc_Starr

9:25 pm on Dec 11, 2001 (gmt 0)



In respone to KNOWZ who started his post by saying:

"Go to one of the search engines or directories where Overture's feeds are sent to. Type in "pay per click search engines". In those "sponsored listings" see any pay per click search engines listed??? Of course not. Do you know why?"

I don't know what you are talking about. I typed in the search phrase you suggested and found plenty of competitive sites. Am I missing something in your statements. For example the top 3 sites on Yahoo (as fed from Overture) were all sites that led to other sites in the Pay per click arena. Tried the same thing on Altavista and got the same three.

Doc

ebgreen

11:46 am on Dec 12, 2001 (gmt 0)



This sounds like a stretch, but my Yahoo traffic has been cut almost in half after Overture began listing their. It does not seem like a bad idea for anyone involved in SEO to express their dislikes to Yahoo about spending $299 and having Overture take over. It does not happen often enough, but some type of boycott should eventually happen. Overture is killing SEO and making companies with VERY high budgets the rulers of internet traffic.

Napoleon

12:20 pm on Dec 12, 2001 (gmt 0)



I wouldn't get too depressed about it ebgreen. My analysis is as follows:

a) The search engines which adopt GoTo tend to be those in trouble. They do it as a short term cash grab... stupidly (IMHO) not recognising that by reducing the relevancy of their returns they are actually increasing the magnitude of their underlying problems. The result tends to be an acceleration in their decline.

b) People are not net illiterate for an infinite period. Eventually they tend to understand where they can get the most relevant returns (and it's not GoTo links!)... in much the same way as they find the best channels for themselves on TV.

c) As a consequence of (b) they generally see through 'sponsored (GoTo) listing' just like they see through banner ads.

This generalisation represents my view of search evolution with respect to PPC listings, and is one shared by quite a few others.

PPC may well be around for the foreseeable future, but I see a decline rather than an increase in it's role not too far down stream.

Let's hope I' right!

PS: This doesn't mean of course that the increase in net commercialism will decline... more that large commercial interests will seek to find other channels from which to dominate the web.

Eric_Jarvis

12:30 pm on Dec 12, 2001 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



dvduval, you completely miss the point...to the SE and the webmaster it is an advert, but to the user it is a search result...you can't hope to understand fully how any form of marketing will work if you don't try stepping into the customers shoes and looking at it, or isn't that how it gets taught these days?

when a TV channel starts feeding me ads thinly disguised as programmes then I stop watching that channel...I don't do something unless there is something in it for me...make an entertaining programme and pack it with ads and sponsorship and I'm hooked...the same with SEs...I'm happy with advertising as long as it doesn't get in the way of what I'm doing

dwampus

2:38 pm on Dec 12, 2001 (gmt 0)



I agree with Eric_Jarvis. People who read and post in these forums learn more about search engines in one day than 95% of Internet users will ever know. They (the general public) don't necessarily know exactly what's going on behind the scenes when they use their trusty Yahoo!, and perform a search . If they type in "vacation" and an Overture advertiser bids $2.05 to be listed first, well then, that's what the user gets. They don't care how it got there. Just because most of us that use these forums have some feelings of negativity towards Overture doesn't mean that the general pubic does.

Mike_Mackin

3:11 pm on Dec 12, 2001 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



Joe/Joan surfer wants to go to Vegas.
He/she needs a room.
Searches on AltaVista for las vegas hotels.

Gets 4 paid results
1 Yellow pages
1 News
10 additional on topic results from DB

He/she books room from the site that offered the best navigation and best rates and bookmarks that site for use in the future. Goes to Las Vegas and has a wonderful time. Only looses $250 in the casino.

He/she didn't care that the first 4 results were paid listings.
That AV had inserted Yellow pages and News.
Or that the results from the DB all used Las Vegas in the domain name [hyphenated and non-hyphenated].

Napoleon

3:29 pm on Dec 12, 2001 (gmt 0)



Guess we'll just have to see who turns out to be right then won't we.

pete

4:26 pm on Dec 12, 2001 (gmt 0)

10+ Year Member



click_watcher "the only way they would gain is by running their own scheme and keeping all the money (if cost effective)"

Exactly! I wouldnt be suprised if many of the engines are using Goto as their test guinea pig before launching their own pay per click model. I for one would hate to see them go this route

Napolean and Mike, I hope that you are right. When I look at our traffic figures, we are still pulling good numbers from the non-commercial areas and I havent seen a decline or a big chunk being consumed by PPC listings.

But, Netscape, Hotbot, Lycos, Altavista and Excite amongst others all promote the pay per click listings as "products and services or "partner search results" and not "sponsored listings".

So, to the consumer, do they pick up that these listings have been bought or do they perceive them as being objective offerings?

Am I wrong in saying that most of the above majors when they first introduced Overtures listings made a point of communicating to the consumer that the listings were paid for? Have they conveniently dropped this?

Do they have a moral / relationship building obligation of informing consumers of whats paid for and displayed and whats not?

(edited by: pete at 4:40 pm (gmt) on Dec. 12, 2001)

(edited by: pete at 4:42 pm (gmt) on Dec. 12, 2001)

Napoleon

4:33 pm on Dec 12, 2001 (gmt 0)



They are deliberately deceiving the consumer... or trying to.

Eric_Jarvis

4:40 pm on Dec 12, 2001 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



what the SE is doing is irrelevany to the consumer...the consumer wants relevant search results as high up the page as possible...take a look at traffic figures for the SEs over time and compare it to the relevance of results they give

it's not difficult to do...at the moment it is easy to smokescreen the figures with the overall growth of web use...as in "we added 3 paid listings and our traffic went up by 5%" sounds good...it sounds less good to say "we added 3 paid listings and our market share went down by 3%"...however, it looks to this outsider like Google has the fastest growing business, and the others are mainly tring to wring more cash out of a falling/static user base

Mike_Mackin

4:49 pm on Dec 12, 2001 (gmt 0)

WebmasterWorld Senior Member 10+ Year Member



>before launching their own pay per click model.

Think about the costs that are involved before they would make a profit. The number of customer service reps and relevancy editors needed to run a PPC/PFP is not small. Buying software from John Cokos or others is only the first step. They would have to hire and train staff to insure that the inhouse program was better, in terms of results presented to the surfer, than what they have now.

The SE / Dir have enough to worry about right now.

imho

Doc_Starr

5:56 pm on Dec 12, 2001 (gmt 0)



Well all I know is that I use Overture to drive bids to my site and since we started using it we are getting hundreds of click throughs per day from sites using the Sponsored Results and in a 3 week period have converted those clicks to over 350 people who filled in requests for more information which is 35 times higher than we were getting before using Overture.
So if it works, use it!
Doc

dwampus

9:35 pm on Dec 12, 2001 (gmt 0)



Hmmmmmmm.....ROI, the name of the game......
How novel.