Overture Sees Growth From Traditional DMers

Share this article:
After building its advertiser base with small businesses, Yahoo's Overture Services sees its biggest growth opportunity from large, traditional direct response advertisers.


David Karnstedt, general manager of direct business at Overture, said the paid search provider's focus is not on rising competition from Google but following its parent company's lead and luring money from traditional direct marketers.


"Our real challenge is not necessarily the other people that participating in the search space but shifting dollars from other direct response advertisers, like direct mail and yellow pages," he said at yesterday's Piper Jaffray Technology Conference in New York.


Search advertising drew $2.5 billion in 2003 compared to $48.6 billion for direct mail and $14 billion for yellow pages.


Yahoo's chief sales officer Wenda Harris Millard trumpeted the turnaround of the portal's brand advertising unit to its focus on industry verticals and the largest advertisers in those sectors.


"We're really focused on those top echelon advertisers," Karnstedt said. "Those are the type of people who help us drive our key economics."


To appeal to larger advertisers, Karnstedt said Overture would offer a portfolio of direct response vehicles. He said Overture would introduce its local search product this quarter and expand its performance-based product line to include its keyword search advertising, contextual listings, and paid inclusion.


The wide array of products, he said, would appeal to traditional direct response advertisers just getting fully involved in search marketing.


"What we're seeing amongst our most sophisticated marketers is less of a focus on the unit price, or price per click, and more of a focus on the overall return," he said.


Share this article:
You must be a registered member of Direct Marketing News to post a comment.
close

Next Article in Digital Marketing

Follow us on Twitter @dmnews

Latest Jobs:

Featured Listings

More in Digital Marketing

Hallmark Takes Baby Steps to a New Brand

Hallmark Takes Baby Steps to a New Brand

The company relied on digital to get its growing children's apparel brand off of the ground.

One Third of Americans' Social Media Time Is Spent on Facebook

One Third of Americans' Social Media Time Is ...

Pandora, meanwhile, attracts more user time but far fewer digital advertisng dollars, says a study.

News Corp. Chief Brands Google an 'Unaccountable Bureaucracy'

News Corp. Chief Brands Google an 'Unaccountable Bureaucracy'

Robert Thomson warns the EU that an antitrust deal with Google will lead to a decrease in competitive options for marketers and an increase in piracy.