Contracts between Search Engine and Portal?

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I have been doing some research trying to understand the changing
dynamics of the search-engine space.  A number of questions are
unclear to me and would appreciate your thoughts on this:

a) AOL pulled the plug on its contract with Overture once yahoo bought
overture.  What is the scare that AOL has?  Stated differently, what
value does Yahoo gain after its merger that puts AOL at a
disadvantage?  How can yahoo use that information as a competitive
threat against AOL?

b) If we think about advertising, there are three players --
advertiser, portal such as AOL and advertising intermediary such as
google adwords etc.  It is quite well known that advertiser pays the
advertising intermediary for the click throughs (or CPMs depending on
the agreement).  But what's not clear is: how is money exchanged
between the advertising intermediary and the portal?  Does AOL also
get some money for the click throughs that happen from its portal or
does it get a fixed fee from the advertising intermediary?

Looking forward to your response.
Thanks in advance,

Re: Contracts between Search Engine and Portal?

Karthik Kannan wrote:
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Aol never had a contract with overture. They had a contract with Inktomi
which yahoo bought last spring. Inktomi is a wonderful search engine if
you like like website results from the dinosaur age that never get
updated. I can't think why aol would drop them.

Re: Contracts between Search Engine and Portal?

AOL moved to google because google is somewhat synonymous with search
and they thought it would improve their revenue. the exact term in
years or percentage of click price is not disclosed since it would
allow people to know more about google than google wants people to

i do not think inktomi is as bad as the other post states, it is more
on page driven and easier to manipulate than google is now though with
the recent change to the google algorithm.

i believe portals typically get somewhere just above 40% if memory


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Re: Contracts between Search Engine and Portal?

aaron wall wrote:
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You've got it wrong about google's current changes. Google has become
more on page driven with the recent changes to their algo and easier to
manipulate than before. I've got 4 sites on page one of my serps now and
never had that before. The trade off is pr counts less and sites with
lower pr but with better on page tactics can now beat you out much

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