28 February 2003 | Author: John Hughes
Speculate to accumulate, as my old school teachers used to tell me. That is the position being taken by Overture this week, in announcing the purchase of their second major search technology in the space of a week.
After acquiring the search pioneer AltaVista last week, this week the internet business arm of Fast Search and Transfer (FAST) has been added to Overture's increasing portfolio.
Overture claim that this will allow them to develop new products (based on existing AltaVista and FAST services), including web search and pay-for-inclusion (PFI). It will also allow Overture to advertise its PPC results on these two search properties, which will come as a major blow to Espotting, who signed a distribution deal with FAST as recently as January.
The logic behind Overture's moves is easy to figure. By purchasing both AltaVista and FAST, Overture has essentially removed them both as competitors, and additionally has prevented certain other organisations from gaining access to their technology. Both AltaVista and FAST were lauded for certain aspects of the technology on their sites, AltaVista for its presentation and approach, FAST for its thoroughness and relevancy.
AltaVista had recently changed its whole presentation model to a search-centric approach similar to that favoured by the much more successful Google. FAST, in terms of its technology and relevancy, was the closest technological competitor to Google. This has allowed Overture access to both these technologies, and the suggestion is that Overture's plan, long-term, is to develop a successful business model for a "Google-clone" search business.
Not only should Google be worried by this, however. MSN was recently rumoured to be considering the acquisition of a web-search technology business, and there were two obvious candidates - AltaVista and FAST. Neither of these options are now available. Google would be too expensive, and difficult to integrate into Microsoft culture, and Inktomi was recently bought by Yahoo!. This leaves the young and experimental Wisenut, currently owned by Looksmart, or the also young and unproven Teoma, owned by Ask Jeeves. If the rumours had basis (and there were some respected sources) then MSN must now buy out Overture or Looksmart, or settle for the less attractive option of Ask Jeeves. It would be unlikely that MSN would ever be able to integrate Google, and buying out Yahoo! would be the equivalent of Glasgow Rangers buying out Glasgow Celtic!
Previously, MSN has had a very good relationship with Overture, which has provided sponsored results on MSN for a number of years.
In fact, respected SEO commentator Danny Sullivan suggested that MSN could not be happy with Overture's apparent defensive move of snatching up both AltaVista and FAST.
"You both need a car, so you both go the car lot and find two cars you like, and then your friend buys both of the cars," he said. "Suddenly, you're wondering if he's your friend."
But what of the future for search engine marketing? Well one interpretation of the buyouts is that Overture, the pioneer of Pay-per-Click modelling is unconvinced of the long-term future for the PPC model. This is speculation, however, but what is certainly true is that Overture definitely sees a long term market for web search. Overture's attempt at diversification into the web-search market is a clear indication that they want their slice of the pie.
Overture obviously believes in the long-term viability of search as a significant web marketing opportunity, and while that is the case, there is always a place for search engine marketing.
Related Links
http://www.thestreet.com / tech / georgemannes / 10070710_2.html
http://www.corporate-ir.net / ireye / ir_site.zhtml?ticker=over&script=410&layout=0&item_id=385605
http://www.internetnews.com / IAR / article.php / 1598601
http://www.overture.com / d / USm / ac / su / faq_da.jhtml
http://www.fastsearch.com / press / press_display.asp?pr_rel=225
http://www.espotting.com / info / pressreleases / pressrelease15_01_03.asp
Overture Gorges on “FastaVista”
Speculate to accumulate, as my old school teachers used to tell me. That is the position being taken by Overture this week, in announcing the purchase of their second major search technology in the space of a week.After acquiring the search pioneer AltaVista last week, this week the internet business arm of Fast Search and Transfer (FAST) has been added to Overture's increasing portfolio.
Overture claim that this will allow them to develop new products (based on existing AltaVista and FAST services), including web search and pay-for-inclusion (PFI). It will also allow Overture to advertise its PPC results on these two search properties, which will come as a major blow to Espotting, who signed a distribution deal with FAST as recently as January.
The logic behind Overture's moves is easy to figure. By purchasing both AltaVista and FAST, Overture has essentially removed them both as competitors, and additionally has prevented certain other organisations from gaining access to their technology. Both AltaVista and FAST were lauded for certain aspects of the technology on their sites, AltaVista for its presentation and approach, FAST for its thoroughness and relevancy.AltaVista had recently changed its whole presentation model to a search-centric approach similar to that favoured by the much more successful Google. FAST, in terms of its technology and relevancy, was the closest technological competitor to Google. This has allowed Overture access to both these technologies, and the suggestion is that Overture's plan, long-term, is to develop a successful business model for a "Google-clone" search business.
Not only should Google be worried by this, however. MSN was recently rumoured to be considering the acquisition of a web-search technology business, and there were two obvious candidates - AltaVista and FAST. Neither of these options are now available. Google would be too expensive, and difficult to integrate into Microsoft culture, and Inktomi was recently bought by Yahoo!. This leaves the young and experimental Wisenut, currently owned by Looksmart, or the also young and unproven Teoma, owned by Ask Jeeves. If the rumours had basis (and there were some respected sources) then MSN must now buy out Overture or Looksmart, or settle for the less attractive option of Ask Jeeves. It would be unlikely that MSN would ever be able to integrate Google, and buying out Yahoo! would be the equivalent of Glasgow Rangers buying out Glasgow Celtic!
Previously, MSN has had a very good relationship with Overture, which has provided sponsored results on MSN for a number of years.
In fact, respected SEO commentator Danny Sullivan suggested that MSN could not be happy with Overture's apparent defensive move of snatching up both AltaVista and FAST.
"You both need a car, so you both go the car lot and find two cars you like, and then your friend buys both of the cars," he said. "Suddenly, you're wondering if he's your friend."
But what of the future for search engine marketing? Well one interpretation of the buyouts is that Overture, the pioneer of Pay-per-Click modelling is unconvinced of the long-term future for the PPC model. This is speculation, however, but what is certainly true is that Overture definitely sees a long term market for web search. Overture's attempt at diversification into the web-search market is a clear indication that they want their slice of the pie.
Overture obviously believes in the long-term viability of search as a significant web marketing opportunity, and while that is the case, there is always a place for search engine marketing.
Related Links
http://www.thestreet.com / tech / georgemannes / 10070710_2.html
http://www.corporate-ir.net / ireye / ir_site.zhtml?ticker=over&script=410&layout=0&item_id=385605
http://www.internetnews.com / IAR / article.php / 1598601
http://www.overture.com / d / USm / ac / su / faq_da.jhtml
http://www.fastsearch.com / press / press_display.asp?pr_rel=225
http://www.espotting.com / info / pressreleases / pressrelease15_01_03.asp
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