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Yahoo fights as Excite Fails 2001

15th November 2001

Yahoo is reported to be developing non advertising revenue sources including paid listings and DSL services while Excite which in the US filed for bankruptcy in September sees its UK subsidiary approach closure as a buyer is sought.

Yahoo develops commerical offerings

Yahoo to list "paid placements"

The New York Times reports that Yahoo is to start showing paid listings alongside of its normal search results in an agreement with Overture (formerly GoTo.com).

Yahoo was reported to have experienced significant reduction in revenues alongside the downturn in dotcom profits when their normal main income source advertising reduced.

Since then they have installed their $299 site review charge which now applies to all new websites submitted for inclusion in their index. The payment does not guarantee that your site will be listed just that it will be reviewed for a listing by a human.

It seems this "paid for listing" trial is a test for other revenue generators for the time being and the agreement is reported to last until early 2002.

Yahoo to sell co branded DSL in the USA.

Britains Financial Times reports Yahoo is adding a co-branded DSL service working with the American SBC company.

The Financial Times reports that Yahoo has 210m unique users per month and 80m active users, but that 80% of revenue still comes from advertising.

The number of Users Yahoo enjoys is a phenomenal cross sales opportunity if they are able to build on the trust people have in the brand to sell other items.

The ability of the internet to connect users with specialist companies is the key force against this re-branding or supermarket retailing philosophy which would allow a trusted brand like Yahoo to sell any associated service. Time will tell if they are able to reinvent themselves as a wider offering. As one of their free users, (I use Yahoo email), I have not yet parted with money directly in my relationship with Yahoo, I wonder how many other users like me are not yet being targetted with costed services, the above being mainly targetted at corporations where the paid for listings allows big companies with deeper pockets to perhaps increase their differentiation from smaller operators.

Excite

Britains Financial Times reports 15th Nov 2001 that Excite UK a a joint venture of BT and US-based ExciteAtHome faces closure unless a buyer is found.

As reported on 1st September 2001 in the Media Guardian ExciteAtHome the parent filed for bankruptcy with $1 billion of debts and may be a confirmed casualty of the search engine wars.

I cannot see many people paying for a listing with Excite at the moment until it becomes clear whether the online search engine will survive or become part of another network.

More search engine news - click here

Author Mark Abraham (mark@sticky-marketing.net)
15th November 2001