SEL: Ask Jeeves Reducing Paid Links, IAC Keeps "Hold" Rating

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Search marketing in the new media era.

August 03, 2005

Ask Jeeves Reducing Paid Links, IAC Keeps "Hold" Rating

In the interest of increasing overall usage, Ask Jeeves is reducing the number of paid listings on their results pages. ClickZ also mentions a previous 31% reduction in paid ads above the fold.

"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."

Forbes says that though this will increase usage, it will have the effect of "likely negatively impacting 2005 EPS." S&P Equity Research "reiterated a 'hold' rating."

Diller thinks the increase in site visits and queries will bring "swift payback."

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Garrett French - MarketSmart Interactive | permalink | +marktd |

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