Re: AltaVista Testing Paid Search Results

From: richard hoy <richard_at_tenagra.com>
Date: Fri, 23 Apr 1999 16:12:55 -0500 (CDT)

WAYNE KESSLER <WAYNE_at_PENNCEN.COM> WROTE:
>If every major search engine succumbs to this kind of
>me-tooism, it should open the door for another approach by a
>potential new "major", whether it be someone like
>Thunderstone or another, to position to become a "real" tool
>for those who want to actually "search" the Internet.
>
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~


Frankly, I've never understood what the revenue model of a
pure search engine is. They can't remain a general
search-only tool and expect to make money from selling
banner ads. I see them moving into one of five possible
directions:

1.) catering to an audience of hardcore researchers who
understand how to conduct complex searches, and charging for
the privledge to search.

2.) focusing on niche subjects, so your total universe of
possible content is more manageable.

3.) using humans to develop editorial reviews and a
categorization scheme.

4.) using a yellow pages model of paid listings.

5.) create lots of hype, operate at a loss and expand into
bigger and better things (like getting bought by Disney).

Both #1 and #2 narrow your market significantly. #3 doesn't
scale if banner advertising is your only revenue model. And
pursuing #5 changes your focus from a search engine to a
media company.

It seems to me that the top engines and Yahoo are pursuing
the #5 strategy. In that case, the search function is less
about finding unbiased, useful content in a profitable
manner and more about using search as a gateway for
directing people into other parts of the media property.


richard

--------------------------------------------------------
richard hoy
moderator, online advertising discussion list
vice president, marketing and client promotions
the tenagra corporation
http://www.tenagra.com/
p: 281.480.6300 | f: 281.480.7715 | e: rhoy_at_tenagra.com
--------------------------------------------------------


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Received on Fri Apr 23 1999 - 17:11:39 CDT