May 31, 2005
From the San Jose Mercury News: “Become.com, a Mountain View search engine company that helps people shop by offering them product reviews and other information, plans to announce today that it has raised $7.2 million in a second round of funding.”
Read the full article (registration required).
Become.com is set to launch its shopping comparison engine this summer. I’m hoping to talk with Michael Yang at Become this week.
Further coverage (no registration required):
San Jose Business Journal
May 31, 2005
Interview with Rafael Ortiz, NexTag co-founder and VP Marketing
Interview with Svetlozar Nestorov, Mobissimo co-founder and President of Technology
Interview with Michael Yang, Become Founder, President & CEO
May 31, 2005
Here’s an interesting article from theMatureMarket.com (the perfect resource for a 29yr old like myself) comparing the market share of visits to the top travel comparison engines to the market share of visits to the top online travel engines. According to Hitwise, “the market share of visits to four of the major travel search engines has increased by 304 percent in the past six months (April 2005 versus October 2004) and their contribution of Visits to the Hitwise Travel Agencies category increased by 250 percent when comparing October 2004 to April 2005. In the same period, the market share of visits of the top 5 travel agencies (Expedia, Travelocity, Orbitz, Yahoo! Travel and CheapTickets) increased by 11.3 percent, while their contribution of visits to the Travel Agencies category decreased from 65.3 percent to 62.2 percent. “
I think the travel comparison engines have developed smart businesses which deliver exceptional value to consumers (seriously, test them out!) and that the online travel agencies will be forced to develop their own engines or purchase SideStep, Kayak, Mobissimo, or Qixo.
May 31, 2005
I find it odd that a company would release a story a couple days before a holiday weekend (or maybe I’m just making up an excuse why I didn’t see this sooner), but Kayak and About.com announced a multi-year agreement on May 25 (official Kayak press release). This is potentially good news for the second most popular independent travel comparison engine (behind SideStep) and could be a sign that more companies are recognizing the power of travel search engines over online travel agents like Expedia and Travelocity. However, we’ll have to wait and see how the partnership plays out. At this point, I couldn’t find Kayak on About.com’s travel pages.
I will contact Kayak this week to find out more about the deal.
May 25, 2005
Anonymous sources in the internet marketing space tell me that IAC/InterActive Corp is hiring tech and biz dev people to join a project called Red Carpet – which apparently will be a new comparison shopping engine. Planned rollout is for Q4 2005. This is just a rumor right now. I contacted IAC for more information 2 days ago, and my contact is still looking into it. I will continue to investigate and tell you more as I hear additional news. If anyone out there can tell me anything about Red Carpet, please contact me (all correspondence will be kept anonymous).
May 24, 2005
Shopping.com (NASDAQ: SHOP) is up 5% intraday on a Deutsche Bank upgrade (to hold from sell). The stock is now back where it was prior to its earnings announcement on April 27, and up 20% from a low of $12.90 on April 29.
I’m trying to get my hands on the Deutsche Bank research, but the wires report that “the current multiples reflect the market’s concerns regarding traffic, growth prospects, reinvestment versus margin expansion and competition. The broker told clients that operating margin expansion may be limited in the near term as the company invests in international expansion. ” The broker went on to say that Deutsche Bank thinks brand advertising in the US might be a better investment than international expansion.
May 19, 2005
I spoke with Dan Ciporin by phone on May 9th. I met Dan quickly at the first Shopping.com merchant summit which the company hosted near its headquarters in Brisbane, CA April 20-21. As I was at the event as a merchant*, I will not report on the content of the merchant summit, but I will say that I was impressed with the quality of the Shopping.com team. Here’s what Dan had to say.
My comments are indented.
On click fraud: “Click fraud is definitely an issue with PPC search engines, and there is a lot of it out there. However, we got a jump on it years ago. At this point, we have lots of mechanisms in place to catch it, and we’ve implemented measuring tools that we think are accurate. If anything, we may over-filter.” Read the rest of this entry »