Web search company Ask Jeeves Inc has decided to allow advertisers bid for ad placement, a system similar to ones used by Google Inc. and Yahoo Inc.

Published: 31 Jul 2005

Web search company Ask Jeeves Inc has decided to allow advertisers bid for ad placement, a system similar to ones used by Google Inc. and Yahoo Inc.

The new advertising programme, Ask Jeeves Sponsored Listings, is to
replace Premier Listings service.

Ask Jeeves was recently acquired by InterActiveCorp. Ask Jeeves also
partners with Google in a deal that lasts through 2007. Google accounted
for roughly 70% of Ask Jeeves' revenue of $US261 million last year.
Under a contract, Ask Jeeves shares in the commissions from the clicks
on the Google ads displayed on one of its websites - a family that
includes Ask.com, Excite.com, iWon.com and MyWay.com.

The latest marketing system of Ask Jeeves is said to be following the
same model, which has proved to profitable for the likes of Google and
Yahoo!. Also, the latest development follows Microsoft Corp.'s decision
to build related advertising by recently launching its own Web search
engine.

"Both Google and Yahoo! allow advertisers to bid for the right to have
their text-based ad links displayed online when specific requests are
entered into a search engine or other relevant content is posted on a
web page," says AP. Advertisers pay a fee each time their links are
clicked on. The bidding frequently changes, meaning the ad placement
shifts throughout the day.

As per the information available, Ask Jeeves also will integrate IAC
Partner Marketing, the advertising and integrated marketing solutions
group of IAC, with AJinteractive, the advertising solutions and sales
division of Ask Jeeves, to form IAC Advertising Solutions. Headed by
Paul Gardi, Jeeves said the division will enable a focus on the three
business areas of IAC Advertising Solutions: search, media and
performance advertising, says dmnews.com.

The report adds that Jeeves seeks to differentiate itself from other
paid search programs by offering advertisers access to its syndication
network, which now includes IAC/InterActive Corp. properties (after the
media giant acquired Jeeves) in addition to already established
syndication partners such as Clear Channel Radio, Excite and iWon.

"When the advertiser is buying through our system, the IAC properties
will be evaluated as syndication outlets," James Speer, vice president
of advertising products at Jeeves reportedly said. Also, the Ask Jeeves
search box will be added to several IAC Web sites.

The difference in Jeeves' paid search program versus others, according
to Speer, is that Jeeves uses daily spending targets, not monthly. In
systems requiring monthly spending targets, a spike in queries on the
first day of the campaign could "consume their entire budget," he told
dmnews.com. "A daily spending cap allows them to pace the campaign over
a month period."

The paid search concept has evolved into an estimated US$US5.4 billion
industry, accounting for about 42% of the $US12.9 billion which
advertisers are expected to spend on the internet this year, according
to research firm eMarketer.