AlmondNet to distribute Lycos' paid listings

April 7, 2005

Lycos is to distribute search listings from its advertisers through AlmondNet's new system that shows advertisements to users based on their previous search history.

New York-based AlmondNet plans to distribute Lycos' Adbuyer paid listings in banner ads, targeting them based on users' previous search behavior.

AlmondNet has struck deals with undisclosed ISPs and adware companies to collect non-personally identifiable search behavior through cookies. The search data is then used by AlmondNet's Post-Search broker network, which buys low-priced run-of-site inventory from publishers, to display graphical ads tied to previous search behavior.

For example, a user who searched for "health insurance" on Google might later see a banner ad on a weather site reading, "Looking for health insurance? Click here for low-cost options."

"Forty percent of online advertising spending goes to search engines, but people spend less than 5 percent of their time on search engines," said Roy Shkedi, CEO of AlmondNet. "Something doesn't add up."

Adware company Claria has plans to start a similar broker network that will use consumer behavior, including search history, to target advertising. Claria plans to spend $100 million buying space for the ad network, due to launch this month.

Shkedi declined to disclose the providers of search information or the publishers that would run the Post-Search ad placements. Each ad will come with a "powered by AlmondNet" logo that allows users to opt out of having their search history used to target ads. AlmondNet will not display ads for adult-related or gambling sites.

Adam Soroca, general manager of search services at Waltham, Mass.-based Lycos, said advertising based on search behavior could prove more valuable than contextual listings, like those Google displays based on a page's content.

"Time will tell whether the advertisers and consumers are benefiting," he said. "We think there's enough evidence in their pilot period that there is enough benefit to both parties."

The ads will not run on Lycos, which has most of its inventory sold through 24/7 Real Media and Google. While the portal is not supplying search information for the ad network, it could do so in the future, Soroca said.

Source: AdWeek

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