Friday, May 21, 2004
Forbes.com: No More Nice Guys: "As the paid search business explodes, the battle between Yahoo and Google turns nasty.
Earlier this year the web site Shopping.com was regularly buying ads that would pop up when certain search words (like 'digital camera prices') were entered in Yahoo's search box. Paid search results, of course, are now common currency on the Internet.
Then Yahoo screamed, banning Shopping.com from buying the ads. What happened? Shopping.com's ads were directing users to its price-comparison site, which is run in close partnership with Yahoo rival Google. Once Yahoo users got to Shopping.com, they saw search results generated by Google; and if they bought a product, the money would be divided between Google and Shopping.com. Shopping.com now gets 38% of its revenues from its partnership with Google.
Only after Shopping.com agreed to begin including some Yahoo-generated links on one of its sites was the ban lifted..."
Earlier this year the web site Shopping.com was regularly buying ads that would pop up when certain search words (like 'digital camera prices') were entered in Yahoo's search box. Paid search results, of course, are now common currency on the Internet.
Then Yahoo screamed, banning Shopping.com from buying the ads. What happened? Shopping.com's ads were directing users to its price-comparison site, which is run in close partnership with Yahoo rival Google. Once Yahoo users got to Shopping.com, they saw search results generated by Google; and if they bought a product, the money would be divided between Google and Shopping.com. Shopping.com now gets 38% of its revenues from its partnership with Google.
Only after Shopping.com agreed to begin including some Yahoo-generated links on one of its sites was the ban lifted..."
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