IAC’s Ask.com already uses Google’s text ads, but hitherto, it’s still used its own search algorithm, which it acquired when it bought Teoma. Teoma and Wisenut were once considered to be potential Google killers, Ask Jeeves bought Teoma; Looksmart bought WiseNut.
Anyway, Ask.com already uses Google’s text ads and when Google filed to go public, it was disclosed that Google was giving Ask a 110% revenue share. That’s right, Google was essentially paying off Ask.com for market share. However, IAC always maintained that one day, it might launch its own ad platform, too. This always seemed to be a hollow threat, because Google has created the world’s most effective and valuable advertising marketplace… it did not make sense for Ask.com to do that, frankly.
Today SAI is reporting that blanketed between potential layoffs is the possibility that IAC simply drops using Teoma to power Ask.com’s search engine and instead fully turns to Google for both algorithm and paid search.
The implications are actually both trivial and important. They are trivial in that Google is getting access to Ask.com’s less-than-5% market share as is via the paid ads relationship; but in the backdrop of MSFT arguing that the market needs a strong No. 2 to fend off a Google monopoly in search, Google might also want to avoid this. Google already powers AOL. So if Ask.com is also powered by Google, in fact, Google “owns” the real estate on 3 of the Top 5 search engines (Google, AOL and Ask.com). In that context, I hate to say it, but it would make sense for YHOO and MSFT to hook up, because otherwise YHOO and MSFT will be fightning for the #2 slot instead of taking on Google for the #1 rank.
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