Ask Jeeves Again Cuts Back on Paid Listings

  |  August 3, 2005   |  Comments

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.

ClickZ Live San Francisco This Year's Premier Digital Marketing Event is #CZLSF
ClickZ Live San Francisco (Aug 11-14) brings together the industry's leading practitioners and marketing strategists to deliver 4 days of educational sessions and training workshops. From Data-Driven Marketing to Social, Mobile, Display, Search and Email, this year's comprehensive agenda will help you maximize your marketing efforts and ROI. Register today!

ABOUT THE AUTHOR

Kevin Newcomb

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.

COMMENTSCommenting policy

comments powered by Disqus

ClickZ Today is our #1 newsletter.
Get a daily dose of digital marketing.

COMMENTS

UPCOMING EVENTS

Featured White Papers

BigDoor: The Marketers Guide to Customer Loyalty

The Marketer's Guide to Customer Loyalty
Customer loyalty is imperative to success, but fostering and maintaining loyalty takes a lot of work. This guide is here to help marketers build, execute, and maintain a successful loyalty initiative.

Marin Software: The Multiplier Effect of Integrating Search & Social Advertising

The Multiplier Effect of Integrating Search & Social Advertising
Latest research reveals 68% higher revenue per conversion for marketers who integrate their search & social advertising. In addition to the research results, this whitepaper also outlines 5 strategies and 15 tactics you can use to better integrate your search and social campaigns.

WEBINARS

Jobs

    • Interactive Product Manager
      Interactive Product Manager (Western Governors University) - Salt Lake CityWestern Governors University, one of the 20 largest universities...
    • SEO Senior Analyst
      SEO Senior Analyst (University of Phoenix (Apollo Education Group)) - San FranciscoSEO Senior Analyst   Position Summary...
    • SEM & Biddable Media Manager
      SEM & Biddable Media Manager (Kepler Group LLC) - New YorkAs an Optimization & Innovation Manager at Kepler Group, you will be on the bleeding...