Why Little Search Engines Can't
There's an old adage that a rising tide lifts all boats. But in the search industry, where the tides have been rising like crazy, the biggest boats are rising a lot faster than the smaller ones.
Ad spending on the Internet has been booming for the past year, and
the fastest growth has been coming from search-related ads of the kind
found among engines such as Google
Google's revenue, which is nearly entirely generated from search-related advertising, grew 93% in its latest quarter, while Yahoo!'s revenue, a mix of search and branded ads, grew 55%.
After the two big search engines reported first-quarter earnings, their stocks rallied. Over the past few weeks, Google has risen 27% and Yahoo! 12%. But smaller companies competing in the search space aren't doing as well.LookSmart
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