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Yahoo! Buys Overture, Google AdSense

July 16, 2003
Helping You Build a Better Website
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Editor's Note

Hello Site Builders,

Yahoo! on Monday morning announced plans to acquire Overture Services, the leading pay-per-click search result provider and owner of the AltaVista search engine and the Web search unit of FAST (which powers AllTheWeb.com). Yahoo! will pay $1.6 billion in mostly Yahoo! stock in order to acquire Overture and its 88,000 advertisers.

It's beginning to look like there will be a 3 way competition for the search engine market in coming years. Yahoo! already owns Inktomi and will now own FAST, which leads one to question when they will be dropping Google as a search partner having the technology to stand alone. MSN is reported to have hired scientists to develop search algorithms specifically to rival Google's. With Yahoo! and Google both having pay-per-click offerings, MSN may soon join the market with their own.

Consolidation of the search engines may lead to higher CPC rates for website owners wanting to purchase such targeted, far reaching traffic. Just as in the past few years, advertisers are going to have to work harder to gain traffic from obscure keywords and phrases or pay more and hope for it to pay off in a more and more long term manner.

What's your opinion about Yahoo!'s purchase? E-mail it to
editor@sitebuildernews.com.

Happy Site Building,
Dan Grossman, Editor
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Last week Google launched their new advertising service called Google AdSense. AdSense ads are rapidly spreading across the Net thanks to their uniquely relevant nature and high CPC-based payout.

AdSense has actually existed for several months, but only on large sites that could serve millions of impressions per month and advertising networks. With AdSense, you are displaying Google AdWords advertisements, text-based ads that Google normally displays to the right of its search results.

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For publishers having little success with current ads or not having enough traffic for CPM deals to be worthwhile, AdSense may be the perfect solution. The high relevancy ensures higher than average click-through rates and all AdSense ads are paid on a per-click basis. The AdSense program is open to sites of all sizes. All you need to do is apply:

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Send suggestions and comments to: editor@sitebuildernews.com

SiteBuilderNews (C) 2000-2003 Dan Grossman. All Rights Reserved. No part of this newsletter may be reproduced in whole or in part without written permission. All guest articles are copyright their respective owners and are reproduced with permission.
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