Model Raises Questions for IYP Industry
News: The beleaguered
online advertising industry has a new darling these days. It's a company
that bills itself as being cut from the same cloth as the century-old
Yellow Pages Overture Services Inc.
Following the directory
industry's longstanding pay-for-placement model, Overture (formerly GoTo.com)
has successfully combined paid advertising with one of the Internet's
most popular and useful functions: search. In the process, Overture has
accomplished something very few Internet companies have been able to achieve,
profitability. In 2001, a year in which many dot-coms keeled over, Overture
boasted a $20 million profit on revenue of $288 million.
the Web's most popular search engine, Google, is attempting to duplicate
Overture's success through the sale of paid listings within its own search
results. In response, Overture this month sued Google, alleging that the
technology Google uses to sell its paid listings infringe on an Overture