LookingConfident's  Instablog

LookingConfident
Send Message
Longstanding investor in Looksmart (& a 67 yr old ex-tradesman), who has a passionate interest in the problems of newspapers along with their success in all their monetisation attempts made, on the web. For the "times are indeed, a changin", I feel. [17th of Aug, 2011 - Print media... More
  • MSN - ASL - Yahoo and the Looksmart CC (1) 0 comments
    Aug 7, 2009 5:17 AM | about stocks: LKST, GOOG, YHOO, IAC


    ##.[In the Looksmart Conferance Call] - Ted West says ..

    ......."Based on industry estimates, LookSmart competes in the $1.5 billion non-proprietary keyword search advertising segment, providing search advertisers and publishers value across our search advertising network.. Those who compete with LookSmart in the non-proprietary segment share a relatively stable 20% of the overall keyword search ad market".## 

    ......Daniel Hung (a shareholder in Google, Microsoft and Yahoo), has made a few very interesting points in a nicely written article here, that is well worth posting some comment on. Microsoft vs. Yahoo: Long term merger arbitrage?

    But he is (I strongly feel), an absolute perfect example of exactly how ignorant the market is, in relation to what is going on here.....He says:


    DH - Basically, Microsoft will power Yahoo’s search and Yahoo will become the ad platform across both search properties
    .

    [True. Microsoft's Bing search, is to be used] 

    *DH - What becomes of Microsoft AdCenter seems hazy, but without access to a legitimate search destination, it will likely be phased out as advertisers prefer to deal with ad networks that have broader reach.
     
    [With Yahoo's ad platform, MSN has no use for AdCenter [it's adCenter] and this was a strong clue they gave when it was announced .... "Microsoft to kill adCenter Analytics by end of year"

    http://arstechnica.com/microsoft/news/2009/03/microsoft-to-kill-adcenter-analytics-by-end-of-year.ars ]


    *DH - In order to monetize effectively, one needs scale. Advertisers want to reach the most people for their ad dollars. Microsoft’s move here seems impatient. Instead of developing and nurturing an in-house ad solution, it’s signing a pricy deal to license Yahoo’s search IP and as well as pay Yahoo a premium to serve ads on its search results. The two companies immediately achieve scale which could win advertisers away from Google, but it’s a disincentive to Microsoft’s in-house Ad Center group. Will it survive this partnership? 
     

    [The writer (*DH......) is not aware of the Global aspect of, not just the scale (in terms of the search deal itself), but the 'icing on the cake' for Yahoo will be, & now having it's Ads soon, to reach out globally to more publisher inventory, and all around the world. IMHO.

    Certainly within that Ted West stated $1.5 billion non-proprietary keyword search advertising segment and this IS a US figure, only. In his summing up (in the CC) he makes that clear when in regards to Looksmart, he says:
     
    < "What does this mean for our long-term strategy, it remains our firm belief that significant industry value will be created through growth of the non-proprietary keyword search advertising market. With a highly fragmented $1.5 billion non-proprietary search business available in the U.S. alone, and no dominant player currently leveraging the scale">    

    An opinion - Continued in Part (2)......

    Stocks: LKST, GOOG, YHOO, IAC
Back To LookingConfident's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.