Barry Diller cites "a great opportunity to improve the consumer experience."
InterActiveCorp (IAC) plans to further cut the number of paid search links appearing in Ask Jeeves' search results, the company announced during its Q2 earnings call yesterday.
"It was very clear when we began our talks with Ask that there was a great opportunity to improve the consumer experience," said Barry Diller, IAC's chairman and CEO.
Beginning today, the number of paid links shown alongside search results will be reduced across all categories. The move is a continuation of an initiative begun last year to improve the engine's user experience, bringing organic search results to the spotlight. In April, Ask Jeeves implemented a 31 percent reduction of paid ads above the fold, which the company said increased user retention and frequency of use.
Despite the reduction in paid links, Ask Jeeves brought in $94 million in revenue for the quarter, compared with $94.9 million in the previous quarter.
Diller said the cuts in ad inventory were determined to offset any impact on per-query revenue with increases in queries and repeat site visits, bringing what Diller called "swift payback."
The move follows news Ask Jeeves will launch an auction-based marketplace for paid search listings, which will appear in the top few listings above its paid listings from Google.
Overall revenue for IAC, not counting Ask Jeeves or the soon-to-be-spun-off Expedia, reached $1.4 billion for the quarter, up from $976 million for the same period last year. Revenue from advertising and media on IAC's Citysearch came in at $11.5 million, up 66 percent from $6.9 million in the same quarter of 2004. It was Citysearch's first-ever profitable quarter.
Join the Industry's Leading eCommerce & Direct Marketing Experts in Chicago
ClickZ Live Chicago (Nov 3-6) will deliver over 50 sessions across 4 days and 10 individual tracks, including Data-Driven Marketing, Social, Mobile, Display, Search and Email. Check out the full agenda and register by Friday, Oct 3 to take advantage of Early Bird Rates!
Kevin Newcomb joined ClickZ in August 2004, covering search marketing and other online marketing topics. He has been reporting on web-based businesses since 2000.
Before the bubble burst, Kevin was a marketing manager for an online computer reseller, handling copywriting, e-mail marketing, search marketing and running the affiliate program.
With a combination of real-world marketing experience and years of business journalism, Kevin brings to ClickZ a unique ability to deliver news and training materials that help online marketers do their jobs better.
IBM Social Analytics: The Science Behind Social Media Marketing
80% of internet users say they prefer to connect with brands via Facebook. 65% of social media users say they use it to learn more about brands, products and services. Learn about how to find more about customers' attitudes, preferences and buying habits from what they say on social media channels.
An Introduction to Marketing Attribution: Selecting the Right Model for Search, Display & Social Advertising
If you're considering implementing a marketing attribution model to measure and optimize your programs, this paper is a great introduction. It also includes real-life tips from marketers who have successfully implemented attribution in their organizations.
October 23, 2014
1:00pm ET/10:00am PT