Ask.com Staying the Course

IAC/InterActiveCorp's (IACI Quote) Ask.com, which has been gaining market share in search since Barry Diller took it under his wing last year, isn't going to make any major changes under new head Jim Lanzone.

"We feel we have a very strong strategy and it's a matter of execution," says Lanzone, 35, who was named to the job Monday after Steve Berkowitz was hired to run Microsoft's (MSFT Quote) MSN. "It's always a surprise when the top executive leaves the business, but the team feels very confident in the strategy for Ask and the way we operate, and my objective is to keep that going."

Searches at Ask grew 33% in the fourth quarter of last year, according to one study. That's four times as fast as the industry rate and faster than search goliath Google's (GOOG Quote) 25% gain. In February, Ask's search growth remained strong, rising 28% from a year ago, vs. Google's 29%.

Ask has recently unveiled a raft of new improvements to its search technology, including "binoculars" that let users check out a Web site by scrolling over its URL. The engine has won kudos from industry observers, including The Wall Street Journal's influential tech columnist Walter Mossberg.

The engine began a new advertising campaign in February to promote the relaunch of its offbeat television spots, including one featuring a talking orangutan. Ask's longtime mascot, Jeeves the butler, has left to spend more time with his family.

"The marketing campaign has a very specific strategy, which is to promote the product differentiation and not just entertainment. The marketing has driven increased usage of those features," Lanzone says.

Berkowitz's departure is a "strategic loss" for IAC, says Scott Devitt, an analyst with Stifel Nicolaus, in a note to clients Monday. He reduced his rating on New York-based IAC from buy to hold.

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