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WebSideStory (ticker: WSSI) CEO Jeff Lunsford devoted part of his prepared remarks on WSSI's Q2 conference call to describing the competitive landscape for site search and pay-per-click ad bid management. These topics - particularly bid management - are important not only for WSSI but for the major search companies as well. Excerpts from Mr Lunsford's comments:

In site search, our main competitors are Verity and Deka (ph) and Google Appliance…

Some software solution providers are… giving away their site search solution... But they don't solve the in-house resource problem … customers feel good about paying a fair but relatively small amount to get the service levels and feature functionality they need to improve site conversions …

In bid management, we are launching this product this quarter…many small players and many companies… offer full-service campaign management. We believe our offering will be clearly differentiated by its integration with Web analytics. It is noteworthy that most other Web analytics providers are also building bid management modules because of the same opportunity. We have shown our solution to our customers and anticipate strong demand upon rollout. With about 1,000 customers to sell into and a nice pipeline for adding customers, we're optimistic as to our prospects with Bid.

The PPC networks are also offering strong bid management tools themselves, but these only cover one customer acquisition endpoint. Any sophisticated online operation is bidding across multiple endpoints and is thus in need of tools such as Bid to effectively manage their campaigns.

(Quotes are from the CCBN StreetEvents transcript.)

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