July 1st, 2003

Overture Services Inc. on Monday launched a product that delivers ads linked to key words on Web content sites, as it battles rival Google Inc. in the lucrative targeted-advertising market.

"Overture plans to diversify both its product offerings as well as its revenue streams,” says Bill Demas, general manager of Overture’s partner business and solutions group.

Overture’s new contextual advertising product is called Content Match. Google and Sprinks, a property of magazine publisher Primedia Inc., already provide similar services.

Contextual advertising is an expansion of the highly profitable Web-search advertising model popularized by Overture and Google, the No. 1 Web search company in the United States.

Advertisers that subscribe to such programs bid for the right to have their ads tied to certain key words on content pages and pay each time an Internet user clicks on their ads, which receive prominent placement.

Pasadena, California-based Overture estimates that the contextual advertising market could grow to $2 billion annually by 2008.

Current users of Content Match include Overture partner MSN, Microsoft Corp.’s Internet property, automotive information site Edmunds.com and MyFamily.com’s network of genealogy Web sites.

Source: MSNBC

        

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