Search, the Next Generation
Kind of interesting article on businessweek.com
My favorite quote:
"Ironically, in the short term, the flood of competitors is good news for Google and Yahoo, which get revenues from serving ads to other sites -- including rival search engines. These new sites will simply increase the ad networks' reach.
Longer term, though, it could be a different story. Just as the large TV networks have lost viewers and advertisers to hundreds of cable competitors, the big search sites could face daunting competition from all the little guys with innovative business models. Search engine Snap.com, for example, can charge advertisers only for ads leading to actual purchases, rather than the traditional method of paying for ad 'click-throughs.' "
Yeah, I think Google and Yahoo are shaking in their boots worrying about Snap. I guess it's irrelevant that Snap only does CPA deals because they have to or they wouldn't get any advertisers. Oh, yeah, and there's the itty bitty minor detail that nobody uses Snap and probably never will. At least they're honest about it. (As a sidenote, Yahoo and other search engines have been known to do CPA deals with advertisers, so it's not all that innovative).
I do think that there is some room for some niche players to do very well in search, I'm just not convinced that Snap has a niche, or that they're one that will be successful--at least not in its current incarnation.
My favorite quote:
"Ironically, in the short term, the flood of competitors is good news for Google and Yahoo, which get revenues from serving ads to other sites -- including rival search engines. These new sites will simply increase the ad networks' reach.
Longer term, though, it could be a different story. Just as the large TV networks have lost viewers and advertisers to hundreds of cable competitors, the big search sites could face daunting competition from all the little guys with innovative business models. Search engine Snap.com, for example, can charge advertisers only for ads leading to actual purchases, rather than the traditional method of paying for ad 'click-throughs.' "
Yeah, I think Google and Yahoo are shaking in their boots worrying about Snap. I guess it's irrelevant that Snap only does CPA deals because they have to or they wouldn't get any advertisers. Oh, yeah, and there's the itty bitty minor detail that nobody uses Snap and probably never will. At least they're honest about it. (As a sidenote, Yahoo and other search engines have been known to do CPA deals with advertisers, so it's not all that innovative).
I do think that there is some room for some niche players to do very well in search, I'm just not convinced that Snap has a niche, or that they're one that will be successful--at least not in its current incarnation.
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