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 New York What's New for 2015?
You spoke, we listened! ClickZ Live New York (Mar 30-Apr 1) is back with a brand new streamlined agenda. Don't miss the latest digital marketing tips, tricks and tools that will make you re-think your strategy and revolutionize your marketing campaigns. Super Saver Rates are available now. 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

UPCOMING TRAINING

Featured White Papers

Google My Business Listings Demystified

Google My Business Listings Demystified
To help brands control how they appear online, Google has developed a new offering: Google My Business Locations. This whitepaper helps marketers understand how to use this powerful new tool.

5 Ways to Personalize Beyond the Subject Line

5 Ways to Personalize Beyond the Subject Line
82 percent of shoppers say they would buy more items from a brand if the emails they sent were more personalized. This white paper offer five tactics that will personalize your email beyond the subject line and drive real business growth.

WEBINARS

Resources

Jobs

    • Customer Service Consultant
      Customer Service Consultant (Bonner and Partners) - Delray BeachBonner & Partners: Full-time Customer Service Consultant Position Who we are...
    • Financial Editor
      Financial Editor (Confidential) - DurhamSIX FIGURE EDITORS WANTED: To enforce lofty NEW editing standards. Easy Conditions Unlikely. Promotion and...
    • Information Processing Specialist
      Information Processing Specialist (Agora Inc. ) - BaltimoreInformation Processing Specialist – The IP specialist position ensures the successful...