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Yahoo search marketing

History

Yahoo! Search Marketing started out as a spin-off company from Idealab. Under the name of Goto, it established itself as the first company to provide a Pay Per Placement search engine. In February 1998, Goto offered advertisers the opportunity to appear at the top of a specific search query based on how much they were willing to pay for the listing. This is still the fundamental principle behind all PPC search engines.

The business model for Goto was simple. A company that was willing to pay more money for a listing would be able to better provide the end user with information regarding the search query. As the web developed over the next two years, this kind of advertising flourished as the web became more than just a place of academic research. The more sites enabling people to purchase products and services online established themselves, the more lucrative it became for these online businesses to have their business appearing at the top for specific search queries.

In October 2001, Goto.com rebranded itself and was renamed Overture Services Inc. Overture was able to acquire lucrative deals with Yahoo and MSN Search to have their PPC listings appear on their search engines along with the organic search listings. The substantial profit made from these deals allowed Overture to purchase two competing search engines, AlltheWeb and Altavista.

In 2003 Yahoo, Overture’s biggest customer for its ppc listings, instigated a takeover of the company and has since rebranded all Overture products Yahoo! Search Marketing.

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