Most investors assume that competition for Yahoo! (YHOO) and Google (GOOG) will come in the search sector. But, maybe not. The other critical portion of the search business is the sale of contextual advertising, the activity the makes up almost all of Google’s revenue.
Quigo, a contextual ad start-up, offers something that the search companies do not, advertising results from specific websites. The company also allows marketers to put their text ads on specific websites, another product not offered by Google and Yahoo!.
The new company is starting to get the attention of its larger competitors. According to The New York Times: “Google said it was prepared to make changes to its AdSense service that mimicked Quigo’s approach, an unusual step for a company accustomed to mapping the terrain in every aspect of its business.”
Quigo may be crushed by the willingness of Google to change its model, but that may make it a catalyst that actually improves Google as an investment in Wall St.’s eyes.
Douglas A. McIntyre can be reached at email@example.com. He does not own securities in companies that he writes about.
Sponsored: Tips for Investing
A financial advisor can help you understand the advantages and disadvantages of investment properties. Finding a qualified financial advisor doesn’t have to be hard. SmartAsset’s free tool matches you with up to three financial advisors who serve your area, and you can interview your advisor matches at no cost to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, get started now.
Investing in real estate can diversify your portfolio. But expanding your horizons may add additional costs. If you’re an investor looking to minimize expenses, consider checking out online brokerages. They often offer low investment fees, helping you maximize your profit.