Blingo is the post-dotcom bubble version of iWon, giving away stuff like ipods and gift certificates instead of a million bucks. The prize is smaller, but so is the competition. I mean, how many people are actually searching on blingo?
I just checked and I guess people are still winning prizes on iwon.com, including some pretty large cash sums (compared to blingo), but still a far cry from the good old days of million dollar winners. There seems to be a market for prize-giveaway search engines. It worries me a little bit as a paid search marketer who is getting searches/clicks by "gamers", but it is a way to get customer loyalty and people referring friends. It's a a way to differentiate when you can't provide better search technology (or you just use someone else's anyway).
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