Feeds

Overture wins MSN deal extension

Smaller slice of pie?

  • alert
  • submit to reddit

Internet Security Threat Report 2014

ComputerWire: IT Industry Intelligence

Overture Services Inc, which sees its shares jump around whenever a new deal is announced in the online paid-search advertising market, yesterday said it has renewed its distribution deal with Microsoft Corp's MSN service. Its share price increased 7% on the news.

There had been a question mark over the relationship since July, when the companies said they had temporarily extended the deal while they negotiated for a longer renewal. Some observers expected to seen Google Inc muscle in on MSN, or for Microsoft to take the feature in-house.

The deal that sees Overture provide paid search listings to the "search pane" of the Internet Explorer browser has been extended until December 2003, and the deal to feature listings in the MSN search site until December 2004. The two deals were to expire yesterday and in December 2003, respectively.

Overture aggregates links from thousands of advertisers, each of which bid to have their links featured prominently against selected keyword searches. Overture splits the cash-per-click with its portal partners, including Yahoo! Inc, AltaVista Co and United Online Inc.

The cash paid to partners is accounted for as a "traffic acquisition cost". Overture said yesterday that its July 2002 forecast of a 60%, rising to 62%, traffic acquisition cost this year and next will be unaffected by the MSN deal. This suggests it was not obliged to significantly increase MSN's slice of the pie in order to win the renewal.

The deals have also been expanded to include MSN properties in Germany and France, as well as the US, Canada and UK. The companies have agreed to test the service in Japan, where MSN has a presence but Overture has not. Overture expects to launch in Japan some time this quarter as a result of the deal, one quarter ahead of schedule.

© ComputerWire

Top 5 reasons to deploy VMware with Tegile

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Facebook, Apple: LADIES! Why not FREEZE your EGGS? It's on the company!
No biological clockwatching when you work in Silicon Valley
Happiness economics is bollocks. Oh, UK.gov just adopted it? Er ...
Opportunity doesn't knock; it costs us instead
Sysadmin with EBOLA? Gartner's issued advice to debug your biz
Start hoarding cleaning supplies, analyst firm says, and assume your team will scatter
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Don't bother telling people if you lose their data, say Euro bods
You read that right – with the proviso that it's encrypted
Apple SILENCES Bose, YANKS headphones from stores
The, er, Beats go on after noise-cancelling spat
prev story

Whitepapers

Cloud and hybrid-cloud data protection for VMware
Learn how quick and easy it is to configure backups and perform restores for VMware environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?
Three 1TB solid state scorchers up for grabs
Big SSDs can be expensive but think big and think free because you could be the lucky winner of one of three 1TB Samsung SSD 840 EVO drives that we’re giving away worth over £300 apiece.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.