Tuesday, December 21, 2004

Verity Teams with Yahoo! for Integrated Search and Ads

As noted by eWeek and other publications enterprise search engine provider Verity has integrated Web searches into its enterprise search platforms, including not only the raw search listings but Overture-serviced contextual ads provided by Yahoo!'s search service. Verity will take a percentage of the click revenues Yahoo! gains from these ads, placing Verity in one swipe of a mouse into the revenue-generating content business. While traditional aggregators serving institutional markets test the waters of contextual ads behind the firewall gingerly, this bold move marks a huge step towards enterprise search engines positioning themselves far more effectively as gateways to the full range of content value found online today. While it's a long way from this point to the full-range subscription services offered by major aggregators, there is going to be a race to the middle of these two relative extremes to a point at which enterprises will have search access to all external content via one provider, with commercial terms managed in a number of models that may or may not rely upon the search provider's infrastructure. We're betting on "not" as the long-term trend, which is more likely to favor technology specialists like Verity and Vignette within the institutional framework over traditional aggregators.
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