Feeds

Overture wins MSN deal extension

Smaller slice of pie?

  • alert
  • submit to reddit

Security for virtualized datacentres

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

Internet Security Threat Report 2014

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
Big Content outs piracy hotbeds: São Paulo, Beijing ... TORONTO?
MPAA calls Canadians a bunch of bootlegging movie thieves
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
YARR! Pirates walk the plank: DMCA magnets sink in Google results
Spaffing copyrighted stuff over the web? No search ranking for you
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
Hungary's internet tax cannot be allowed to set a precedent, says EC
More protests planned against giga-tariff for Tuesday evening
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
prev story

Whitepapers

Choosing cloud Backup services
Demystify how you can address your data protection needs in your small- to medium-sized business and select the best online backup service to meet your needs.
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.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.
Business security measures using SSL
Examines the major types of threats to information security that businesses face today and the techniques for mitigating those threats.