Thursday, June 10, 2004

Google loses to Yahoo in Australia (June 10, 2004)

NEWS.com.au | Google loses to Yahoo (June 10, 2004): "GOOGLE'S efforts in the Australian market have taken a body blow as News Interactive yesterday became the third major online publisher to sign a search marketing distribution agreement with Yahoo's subsidiary Overture.

The News Corporation Ltd's online arm joined Fairfax's F2 and CNN in ditching Google in favour of Overture...The News deal was Overture's most comprehensive to date, as Overture would also provide search functionality within NI websites and contextual advertisements alongside content services, which NI managing director Nic Jones said Google had been unable to offer in Australia. But there was general dissatisfaction with Google's service.

"The reality is they haven't committed that much resources and time to Australia because they've worried more about other areas," he said. "We've had six different account managers within Google in a very short space of time, and getting them to concentrate has been pretty tough...

Overture's Australian managing director, Mel Bohse, said that, unlike Google, her company did not have its own high-profile web presence, which meant there was less risk to publishers of their readers being diverted to another search destination. Ms Bohse said that the agreement took Overture's distribution reach to 85 per cent of Australia's online population....

unlike its competitors, Overture employed editorial staff to ensure the keyword placements were being bought by companies with a legitimate link to the word.

She pointed to the Jetstar launch, when Flight Centre bought advertising links on Google so that web users searching for "Jetstar" were served up sponsored links to the travel agency.

"That would never happen on Overture. It's not a good experience for consumers to be taken somewhere they don't want to go," Ms Bohse said.

"And it's not good for advertisers, they're looking for qualified leads."

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