In a move aimed at proving 0+0=0, Lycos and Ask recently partnered on PPC ads.
Sounds like you have had the Googlebotomy....
It's not harsh if you've tried them out. Their network is real bad.
They don't have a lot of traffic but we are able to get a lower CPA than Google... obviously averaged through all spends.
meaningless company that doesn't have a freaking clue.....
Question is why the hell is Lycos bothering with Ask when they can simply lease LookSmart's PPC system for themselves (same thing) for about $20k a year + a revenue share? (Not that I think companies should actually ever use a 2nd party PPC software system.)
Now they are simply getting a cut (goog), of a cut(looksmart), of a cut (ask) of the revenue share for most of the ads they will push.... Nice business decision on that one, DUH.
Keep that clueless train alive Lycos!
I happen to know something about the Ask PPC offering, and I think that for an oufit like Lycos, it's the best deal on the market
I know about their PPC offering too and it is indeed okay. However, Ask could have the best PPC offering in the world and if I'm losing revenue share on every click because I depend on someone else completely for my software/ads, over the long term, I'm simply losing tons of revenue.
It's a bonehead decision no matter how good Ask's RPC is. It's never a good idea to use someone else's software unless you don't have the sales staff or IT resources to develop your own system. Lycos is simply diluting their rev share so it's really not a smart business move. Either way it's very telling as to the state of affairs at Lycos if they can't handle their own business and need to offload it to someone else.
>> Lycos is simply diluting their rev share
But on the broadest advertiser base in the world. I'd bet that they see more rev per visit on average with the Ask deal than they would from running their own ads
Why would Ask spend all the money on TV ads trying to rebrand themselves and then hop into bed with a company on the verge [verge hell, that ship sailed already] of obsolescence, it makes NO SENSE whatsoever.
Someone obviously blew someone and we don't have the blue dress for DNA testing yet.
In a move aimed at proving 0+0=0
>> I'd bet that they see more rev per visit on average with the Ask deal than they would from running their own ads.
No, mosty likely they wouldn't.
Let's say Ask has an average $0.65 RPC across the board with all ads, goog's, their own, and other providers mixed in.
Let's give Lycos a reasonable $0.25 RPC across the board on their own in house ads (if they had any).
50% of Ask's average RPC will go to their upstream ad provider. (As most advertisements are not Ask's - they are Google's). Hell let's give Ask a revenue share of 60% just to kick more earning's Ask's way.
$0.39 EPC to Ask.
Lycos gets 50% of Ask's EPC.
$0.195 EPC to Lycos, or less.
Now, an average $0.65 RPC across the board is high, even for Google. Most middle market PPC players charging a minimum $0.05 per click, ride an average of $0.11 to $0.16 RPC. Lycos could certainly do even better than the average middle market chump ONLY IF their minimum bid was $0.10 per click. An average of $0.23 to $0.27 per click for Lycos on their own in house ads would not be unlikely.
So no, (most often) it is not better to hand off advertisers to another company for sake of having your own program. Even with sales comissions figured in (of which it is usually less than 7%) Lycos would still be making more money off having their own system and/or network.
Like I said. It's a piss poor business decision. Good for Ask. Crappy move for Lycos. Over time they are losing far more revenue.
Your revenue assumptions are not even close, the way Lycos' cpc program was set up was faulty and merely opened up the Lycos Network to people opening up accounts in the search arbitrage business. This deal makes much more $$ for Lycos because it is able to leverage the larger search traffic of Ask and clout of IACI in order to get a better blended rev share overall.
As far as the 0+0=0 comment I would think it would be more fair to say 1/4 + 1/2 = 3/4 but please lets not get too negative as comparing anyone to the 140 Billion market cap balloon would seem to make all competitors zeros period. Should all competitors just bury their heads in the sand?
"hop into bed with a company on the verge [verge hell, that ship sailed already] of obsolescence"
Talk like that will just get Yahoo! interested in buying Lycos. Think of the user data... ;)
>> Hell let's give Ask a revenue share of 60% just to kick more earning's Ask's way.
The deal Lycos have is better than AdSense Premium publisher deals ever will be. You've seriously underestimated Asks take. G deal with Ask for market share, not revenue
benefit of the doubt but I've been monetizing search for engines for the better part of 4-5 years. I have NEVER once seen a case where a publisher feed paid more than was possible by the in house RPC over the long term. On some clicks, yes, the revenue share will be better. However for the vast majority the RPC will be at the bare minimum or slightly better. Therefore having your own base and a slightly higher minimum per click is the best way to go, always.
It just does not work out the way you think it does Tall. Their advertiser program also suffers from a rev share split to LookSmart on a lot of clicks (assuming Ask pays LookSmart a rev share which I don't know for sure but Look makes it a requirement for most of their private label interface deals). Ask doesn't own their own ad system man! "G deal with Ask for market share, not revenue" is so not true. The majority of Ask's revenue is from Google. So if Google is only after market share, fine. However Ask is dependent on Google for the revenue to stay cash positive.
With or without Lycos, ASK's Ad Platform is a joke. In fact, it's got to be one of the worst I've ever encountered, reminiscent of the Enhance PPC platform when it first launched (post brand change). At least with Enhance, however, their customer service/account managers answered their phones and responded to your email. Somebody over at ASK there better figure it out real quick. It's no wonder their platform is getting crushed by Y and G and has so many advertisers "up to hear with it."
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