Oct 9, 2007 114 reads by Navneet Kaushal

"Ask.com Ad Pact With Google Ends Soon" informs CNN Money. Apparently, back in February, Director, Chairman and Chief Executive Officer of IAC, Barry Diller was confident that Ask.com and Google would renew its ad pact. In a pool of google's ad-network alliances, Ask.com is the biggest.

Analysts say this is because, "it's Ask.com that has a lot more to lose than Google if no renewal gets done. Partnerships with companies like Ask.com mean a lot less to Google GOOG today than they did a few years ago because Google has only widened its lead in the search market, analysts say. While Google and its ad partners don't reveal the ad split, analysts say Google gives its largest partners as much as 80% to 85% of the revenue from ads posted and clicked for partners' sites. That's another reason it wouldn't hurt Google much to lose Ask.com as a partner, says Sandeep Aggarwal of Oppenheimer & Co."

Youssef Squali, an analyst at Jefferies & Co., explains saying, "It's (Ask.com only represents 1% of Google's revenues) not significant. If it's more than 1% (of Google's total ad revenue) I would be shocked. Every single month in the last nine months they have been gaining market share. Three years ago when Google was going public, it paid to have AOL and Ask as distribution partners. I don't think they're as important anymore."

The dilemma that Ask.com now faces is, "you have to wonder whether it makes sense to take the money now, and run the risk of getting your traffic monetized at a dramatically lower rate than what you would be getting with Google."

Navneet Kaushal

Navneet Kaushal

Navneet Kaushal is the founder and CEO of PageTraffic, an SEO Agency in India with offices in Chicago, Mumbai and London. A leading search strategist, Navneet helps clients maintain an edge in search engines and the online media. Navneet's expertise has established PageTraffic as one of the most awarded and successful search marketing agencies.
Navneet Kaushal
Navneet Kaushal
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