SEL: Paid Inclusion Needs to Change its Ways

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Search marketing in the new media era.

December 29, 2003

Paid Inclusion Needs to Change its Ways

According to Internetnews.com, if paid inclusion is to see future growth, it needs to change its pricing model. Quoting from a Jupiter Research report:

"Paid inclusion programs that currently have a cost-per-click pricing component must eliminate it, as the model has a fundamental and inherent conflict of interest," the report said. For one, it continued, until paid inclusion programs are solely based on a time-based pricing model (i.e., an annual fee per URL), uncertainty and doubt will continue to cloud the industry."

The key finding of the report said spending on paid inclusion will decline by about one-third next year, from $167 million this year, to $110 million in 2004. This is due to the loss of revenue by LookSmart after its contract with MSN expires in January.

The report does forecast revenue rising in the sector to $293 million by 2006.

Andy Beal | permalink | +marktd |

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