Overture Services, Inc. v. Google Inc.

Filing 116

Declaration of Ravind S. Grewal in Support of 115 Google's Responsive Claim Construction Brief filed by Google Inc.. (Attachments: # 1 Exhibit 1# 2 Exhibit 2# 3 Exhibit 3# 4 Exhibit 4# 5 Exhibit 5# 6 Exhibit 6# 7 Exhibit 7# 8 Exhibit 8# 9 Exhibit 9# 10 Exhibit 10# 11 Exhibit 11# 12 Exhibit 12# 13 Exhibit 13# 14 Exhibit 14# 15 Exhibit 15# 16 Exhibit 16# 17 Exhibit 17# 18 Exhibit 18# 19 Exhibit 19# 20 Exhibit 20# 21 Exhibit 21# 22 Exhibit 22# 23 Exhibit 23# 24 Exhibit 24# 25 Exhibit 25# 26 Exhibit 26# 27 Exhibit 27# 28 Exhibit 28# 29 Exhibit 29# 30 Exhibit 30)(Related document(s) 115 ) (Grewal, Ravind) (Filed on 1/30/2004)

Overture Services, Inc. v. Google Inc.

Doc. 116 Att. 3

Case 3:02-cv-01991-JSW

Document 116-4

Filed 01/30/2004

Page 1 of 3

EXHIBIT

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Title: New service puts ad auction, search engine under one roof.
Subjecl(S): INTERNET advertising AUCTIONS GOTO. COM (Company) &Jurce: Electronic Advertising & Marketplace Report 04(28/98, Vol. 12 Issue 8, D6. 2p

Abstract: Examines the advertising auction operations by Monterey. California-based

Go To. com.

Company's combination of a search engine with an advertising auction; Offer of more

traditional advertising programs such as bailller advertisements and offer of more relevant search data for consumers; Advertising fees.

AN: 551865 ISSN: 1092- 0188

Database: Corporate ResourceNet

Print: 0 Click here to mark for print.
fGo To Citationl

Best Part

NEW SERVICE PUTS AD AUCTION , SEARCH ENGINE UNDER ONE ROOF
. After dismal

failures such as AdBot (EAMR , Dec. 24, 1997), advertising auctions appear to be making a comeback. Startups such as FlyCast (EAMR , Dec. 9 , 1997) and Adauction.com (EAMR, Feb. 24) are flourishing, and now Monterey, CA-based startup Go To. com hopes to change the problems auctions have had by combining a search engine with its advertising auction.
Go To. com

(www,goto. com) allows Web users lo conduct a search much as they would on Yahoo! or Excite , but with a twist: it lets advertisers pay for their ranking in the search results, rather than providing ra,ndom results etermined by keyword density or a random algorithm. The auction is continuous, and adve rtisers are notified via e-mail if t hey are outbid and conse(juently moved down a notch on the search r~sults. There is no. baseline bid; advertisers may bid a penny- per-clickthrough and go up from the

Advertisers also pay a one-time fee of $10 for a customized description they want featured in the search result, rather than the random sampling of phrases from the site s homepage that other search engines provide.
Since its launch Feb. 21, Go To. com has attracted more than 1 000 advertisers, including iVillage s The Women s Network, Gamespot, ABCnews. com , The Mining Company, NFL com, CitySearch , eToys and ESPN SportsZone. Go To. com currently averages 7 million page views per month, up from 5 million at launch.

A Better Idea?
GoTo. com believes its model yields more relevant search data for consumers , according to chief executive officer Jeffrey Brewer , a cofounder of CitySearch. " The current palate of search offerings aren serving online users well " said Brewer. " There s too much junk , too much irrelevant information. The major search engines are highly undifferentiated.

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by listing the price a ;::ertisers are paying for each listing. For example , a search using the keyword " cars " yields Toyota. com as the first result. Next to the Toyota URL is "$0. " the price Toyota is paying per-clickthrough. over the duration of a to Go To. com Advert isers need to payout a minimum of $25 for their search listing campaIgn.
Go To. com lists the ad price so that consumers understand the search results they see first have paid to be listed first. " re being honest with consumers. This is a controversial business model and people are OK with it as long as we re up front " Brewer said. Even advertisers have accepted the business model. " Advertisers were reluctant at fITSt , but they accept it in return for a cost- per-sale pricing model " he added. Brewer said

Go To. com also offers more traditional advertising programs such as banner ads, which cost $24 CPM for standard rotation, and $40 CPM for targeted rotation, which c;Qmbines keyword and fixed-positio rotation.

While Go To. com is not yet profitable , Brewer said the company is not hurting for cash. The company just completed a round of financing from private investors in the $5 million range, and Brewer said GoTo should not have to seek out additional investment.

, The 30-person company is a division of idealab! , a self-described " Internet incubator " which has helped lau ~ch more than 20 Web businesses, including City Search, Tickets. com and IntraNetics.

Will Advertisers Buy This Premise?
At least one advertiser is thrilled with

thousands of visits from the search engine during its fIrst week listed on the service. ""

PhotosToGo.com, an online photo service, received Go To. com has chief executive worked so well for us we only use them and AskJeeves anymore " said PhotosToGo officer Bahar Gidwani. " People using Go To. com are more sophisticated about the Web , they don t want
GoTo. com.
to waste time looking through 50 trashy sites to get what they wanL
Gidwani also sees Go To. com displaying the price of the listing as a plus, rather than an annoyance. s useful information, it shows you who s a serious player in this market " he added.

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Will Advertisers Buy This Long Term?
Banner ads may hold value as brand builders , but with average clickthrough rates flat at 2% for the past three years , they aren t doing the job as traffic generators. Enabling advertisers to pick how their listing result comes up in a search is a great idea, but it remains to be seen how much more efficient GoTo search capabilities are over the established giants.
is up against Go To. com Many advertisers still buy space according to the site s brand, and as a startup, steep competition. Go To. com is automatically popular because of its pay- persale model , but it will need to provide advertisers with steady traffic over the long haul if it hopes to steal market share away from the big boys.
Copyright of Electronic Advertising & Marketplace Report is the property of SIMBA Information Inc. and its content may not be copied without the copyright holder s express written pennissjon except for the print or download capabilities of the retrieval software used for access. This content is intended solely for the use of the individuaillser. Source: Electronic Advertising & Marketplace Report, 04/28/98 , Vol. 12 Issue 8. p6 , 2p. Item Number: 551865

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