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Wednesday, October 1st, 2003

Google & Lycos Make AdSense

In a wise move, Google has outflanked its main competitor Overture by signing a deal with TerraLycos to display AdWords on several of TerraLycos’s US Internet properties such as Tripod, Angelfire, HotWired, Lycos.com, Matchmaker, and Raging Bull. TerraLycos joins other Internet heavyweights, iVillage, Weather.com and Switchboard as carriers of the AdSense program that allows websites to display AdWords advertisements on their sites. Thousands of smaller webmasters and media outlets also display AdWords ads through the AdSense program. TerraLycos (US) saw over 31 million visitors last year throughout its network of portals and sites.

Last Monday I received an Email from the Wall St. Journal. Since this is something that doesn’t happen every day, and, since the WSJ has already run the article with a quote from our correspondence, I thought it would be nice to share the email exchange with the world. :)

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Search engine marketing firms have reported much lower than expected results from contextual advertising campaigns, comparing click-throughs and actual purchases to the numbers shown by banner advertising. For the accountants and business planners at Google and Overture the news couldn’t come at a worse time. Both Google and Overture are depending on Contextual Advertising programs as significant revenue sources this year. If the bottom drops out of this emerging market, as it has from the once popular banner advertising market, both search firms could take a pretty large financial hit. Read more…