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Overture (formerly Goto) is one of the most famous search engines, providing the current popular "pay-for-performance" Website Login service, is the so-called "bidding ranking" the originator. Domestic Baidu launched the bidding ranking service is borrowed from the overture business model.
Overture's Pay-per-click price is determined by competitive bidding and is linked to specific keywords. The higher the amount of bids a user gives to a keyword, the more the user's site is ranked before the keyword is searched.
In addition to some of the most popular keywords priced more than 1 U.S. dollars, the general keyword price from dozens of to a few cents. However, at present, the key words of overture for a certain period of time to reach the limit of access traffic does not provide bidding opportunities.
Overture also accepts free login, but free sites are always behind paid sites. The site through the auction ranking overture generally only 3 days, and there are opportunities to appear in the Yahoo, AltaVista and other Web site search results.
The profit and trend of
Overture
local time August 21, the United States Overture Services announced the opening of about 3.2 billion documents, "the world's Largest" (Overture) search Indexing Service.
the index was developed by the WEBW Search Department of the Norwegian Fast Sear Ch & transmits (FAST), which was acquired by the company in April.
This service not only increases the number of searchable documents but also improves the URL ranking function. Introduced new methods for judging the reliability and quality of Web pages and Web sites under specific conditions.
In addition, the company announced early this summer that the US AltaVista service, acquired by the company in April, will be able to leverage large-scale multimedia indexing services. The multimedia index with more than 550 million sets of images, audio, and video files will be used in the new toolbar "AltaVista Toolbar" provided by AltaVista.
Jim Barnett, president of the Overture Web Search department, said the Indexing Service was the world's largest Web Indexing Service after a large multimedia index, meaning the company's search architecture was extensible. We will continue to provide our global partners, advertisers and users with excellent search products and services.
Overture, a pioneer in the search service advertising business, has created an innovative approach that not only makes itself famous, but also opens up a new way of making profits for the entire internet industry. But Overture's success has led to Google, the formidable competitor, now Overture's market is being swallowed by Google, in order to be able to survive and develop in the fierce competition, overture almost resorted to all the tricks. "Business Week" to Overture in the future will face the grim situation of the discussion and analysis.
Overture is the pioneer of the Internet advertising industry, as early as in 2000 and 2001, when the entire network advertising market has been in the trough, overture on the contrary, began to launch on the search engine page to introduce a charge of advertising services, Overture's decision is based on the idea that people who search for something on the internet are happy to accept ads related to search targets and react to them, and may eventually buy the products that the ads introduce. Overture's strategy has proved to be a huge success, and now the share of paid searches in Overture's online advertising revenues has risen from 7% in 2001 to 33%. Overture expects 2003 turnover to rise from $667 million trillion in 2002 to $1 billion, making overture ranked 68th in the top 100 of the IT industry in "Businessweek" rankings.
Overture, formerly known as GoTo.com, is undoubtedly one of the successful people in the Internet industry, and its success story is still being talked about. But its success has not only made it a beneficiary, but it has also made it a victim, with the rich reporting of paid-search services that has led many web-services companies to see business opportunities and to take action to separate the big cake, Includes the zenith of search service giant Google. Overture has been hit hard by fierce competition, and overture, while enduring the pain of falling margins, has to make huge sums of money to develop or buy new technology to maintain its competitiveness. A recent survey showed that although Overture's turnover could increase by 54% in 2003, profits would fall by 74%, from 1.29 dollars a share in 2002 to 34 cents per share in 2003. Since January, overture stocks have fallen from the top 31.30 dollars to $16.32 trillion now, and there is room for analysts to overture stocks.
to enhance his profitability and compete against Google, Overture must transform itself into a technology company with multiple services. To achieve this goal, Overture bought the search engine AltaVista and the Norwegian Search service fast in February at a price of 140 million dollars. Overture's president and CEO Ted Meisel, said: "There is no doubt that we are a continuous development of the company, as the market matures, many customers tend to work with only one supplier, this trend is not only our opportunity, but also bring us greater pressure and challenges, In order to survive and develop, we must constantly improve and strengthen ourselves. ”
Overture plans to launch a content positioning service over the next 60 days, through which overture will expand the application space for paid advertising by partnering with web publishers, where paid advertising will not only be displayed on the search engine's results page, And Overture's new technology can also "read" the news article and homepage that the user is browsing on the customer site and dynamically put the related advertisement, that is to say, if the user is reading the content related to the broadband service, then Overture will launch the advertisement about the high-speed Internet service for the user. Currently, Google has deployed and run similar systems.
It is an indisputable fact that Overture is losing its edge in the increasingly competitive web search market, which was in Overture's hands in 2001, but by the end of 2002, Google had grabbed 50% of the search results page ad market, Overture has lost most of its land. In the next few months, Overture will also face a very severe test, Citigroup analyst Smith Barney in a survey published on May 9, said: "In the next few quarters, the form would be against the overture direction." "To get out of the bad situation, Overture has developed a variety of solutions and measures, the most important of which is to retain two big customers-Yahoo and MSN, the two customers from the revenue of the overture turnover accounted for 60%. But keeping the two clients is not a simple task, and Yahoo has begun to take action to build its own search engine system to reduce its reliance on external search-engine providers, which purchased the search engine technology company Inktomi in December 2002, And in January 2003, Overture, senior executive Tim Cadogan as head of its search service, said the trend for Yahoo to use its own search system to replace Overture's services was already apparent, The possibility of renewing contracts with overture after the expiry of the December 2004 contract is minimal. MSN also has the idea of a way of doing things. Although overture for customers out of the conditions are very rich, but still can not avoid the loss of customers, many small customers have been put into the embrace of Google.
survey shows that Overture's high return to attract and retain customers has reduced its profitability to dangerous margins, and even if the company's turnover reached $1 billion trillion, its gross margin could only hover at 5% per cent, according to Citigroup analysis If overture is going to increase its gross margin to 10%, it must achieve a turnover of 1.7 billion dollars. But in the current situation, 1 billion of dollars in turnover is already optimistic estimates, 1.7 billion dollars can only be a hungry figure.
Although the future of overture will be facing a bumpy road, but advertisers and analysts believe that Overture has the ability to tide over the difficulties, embark on a healthy development, on the one hand overture through years of operation has won the market recognition and customer trust, It has the foundation to meet the challenge, on the other hand, because Google in this area has been unusually strong, its competitors must not let Google form a monopolistic pattern. For Yahoo and MSN, even if able to disengage from Overture, its share of the market can only reach 20% and 15% respectively, if the overture to extinction, Google a single big situation is still unavoidable. For their own survival, companies including Yahoo and MSN must seek to forge alliances against Google, so they must also protect the overture.
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