Rockstar Consortium US LP et al v. Google Inc

Filing 93

Additional Attachments to Main Document: 92 MOTION for Leave to File A Supplemental Brief In Response To Googles Motion To Transfer In Light Of Newly-Acquired Evidence.. (Attachments: # 1 Exhibit 31, # 2 Exhibit 32, # 3 Exhibit 33, # 4 Exhibit 34, # 5 Exhibit 35, # 6 Exhibit 36, # 7 Exhibit 37, # 8 Exhibit 38, # 9 Exhibit 39, # 10 Exhibit 40, # 11 Exhibit 41, # 12 Exhibit 42, # 13 Exhibit 43, # 14 Exhibit 44, # 15 Exhibit 45, # 16 Exhibit 46, # 17 Exhibit 47, # 18 Exhibit 48, # 19 Exhibit 49, # 20 Exhibit 50, # 21 Exhibit 51, # 22 Exhibit 52, # 23 Exhibit 53, # 24 Exhibit 54, # 25 Exhibit 55, # 26 Exhibit 56, # 27 Exhibit 57, # 28 Exhibit 58, # 29 Exhibit 59, # 30 Exhibit 60, # 31 Exhibit 61, # 32 Exhibit 62, # 33 Exhibit 63, # 34 Exhibit 64, # 35 Exhibit 65, # 36 Exhibit 66)(Bonn, Amanda)

Exhibit 32

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STUDY: SEARCH ENGINE VENDORS ADOPT NEW STRATEGIES
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Full text: While technological advantages ares a key factor to success in today’s search- engine market, searchservice vendors must focus on sales and marketing strategies to differentiate themselves from the competition,
according to a report bythe International Data Corp. (IDC).
Given that advertising accounts for the bulk of revenue generated by search services, it is not surprising that
most sales and marketing efforts are focused on attracting advertisers.
Rapidly emerging as the most popular sites on the Internet, search engines traditionally attract advertisers "on
the merits of their impressive traffic alone," said I DC Analyst Ted Julian, author of the study.
But most vendors also have more to offer than just high volume, thanks to such approaches as "narrow
casting," or placing ads based on key words entered in a search. These capabilities allow advertisers to target
audiences through search engines like no other medium.
"Not only can the engines track the things you’re searching on, they can suggest target ads. This is one-to-one
marketing," Julian said.
Another approach to selling ads is through leasing key search words. Advertisers can purchase the rights to a
key word not necessarily one derived from their own products. If a search term matches a key word, their ad will
be placed.
Lycos Marketing Manager Sarah Garnsey said users who enter the key word "Windows" on the Lycos engine,
for example, will see an ad for IBM. She added that AT&T {T} once owned the key word "telephone."
While search engines can personalize ads based on search terms, another effective model is to personalize
entire sections based on geographic and demographic factors. Vendors can not only index content for a
targeted population, they can sell advertisers a guaranteed demographic.
Taking advantage of this emerging strategy, Yahoo already has launched Yahoo! San Francisco and Yahoo!
Japan, and has plans to launch engines in France, Germany and Great Britain. These sites will offer content
tailored to the population in each country.
Yahoo also launched Yahooligans, targeted at children ages 8 to 14, which includes more than 1,500 web
listings selected by educators as appropriate for children, according to Julian.
But in the race to draw the most advertisers, such approaches also are becoming de facto standards among
search engines. This is leading many search-service vendors to form partnerships with companies to not only
acquire marketing technologies such as narrow casting, but to purchase licenses for content and better search
technologies. Technology vs. Content: Which Is the Key? Yahoo!, one of the most popular search sites, isn’t
built on its own search technology. Instead, it licenses its engines from other vendors, including Digital’s
AltaVista engine, which it recently acquired.
"We’re not in the original content generation business," said Yahoo president Tim Kogle. Investing in licensing
technology allows Yahoo to spend less on research and development, and to focus more on consumers and the
needs of advertisers, he said.
Julian said he likes Yahoo’s strategy. "Since the real business is selling advertising, efforts should be focused
there. Why make that significant investment in R&D when six months from now that engine could become
insufficient?"
But search vendors supported by their own engines, such as Excite, Infoseek, Lycos, and Magellan, generate
significant revenue by selling licenses for their search technology to other vendors. By marketing themselves as
the "most comprehensive directory," these firms hope to draw surfers and advertisers.
Infoseek Chief Marketing Officer Jim Defrosier says such investments in R&D are cost effective.
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"1 think the technology issue from a strategic point is bigger than people are admitting," said Defrosier. "Those
people that have their own {engines} have the advantage because they won’t have this cost and more of the
money will be able to put on developing the franchise."
Regardless of the source of their search-engine technology, says Julian, most vendors have the same approach
to selling ads. "Search vendors are also under increasing pressure from ad agencies to bill by CPMs (cost per
thousand impressions), provide third-party audits, and support click through’ (as opposed to appearance
contracts," he said in the study.
In the future for search vendors, Julian said he expects more search vendors to emerge, while some may die
out.
"It’s unclear that the market is big enough to support the players that exist today as they exist," he said. "Some
of them may go out of business, but more likely they’ll take a more targeted approach to focus on a segment
where they really do well."
To order the IDC study, "lnternet Search Vendors’ Search for Profits," call [phone].
Subject: COMMUNICATIONS TECHNOLOGY;
Publication title: Phillips Business Information’s Internet Week
Pages: 1
Number of pages: 0
Publication year: 1996
Publication date: Aug 5, 1996
Year: 1996
Publisher. Access Intelligence LLC
Place of publication: Potomac
Country of publication: United States
Publication subject: Communications, Computers--Computer Networks
188N: 10812474
8ource type: Trade Journals
Language of publication: English
Document type: PERIODICAL
ProQuest document ID: 206160837
Document URL: http://search.proquest.com/docview/206160837?accountid=142944
Copyright: Copyright Phillips Business Information Corporation Aug 5, 1996
Last updated: 2014-05-19
Database: ProQuest Technology Collection

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Bibliography
Citation style: APA 6th - American Psychological Association, 6th Edition
STUDY: SEARCH ENGINE VENDORS ADOPT NEW STRATEGIES. (1996). Phillips Business Information’s
Internet Week,, 1. Retrieved from http://search, proquest.com/docview/206160837?accountid=142944

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