Who Acquires Become?

Ok, I had this whole post written and then my computer froze up on me. Matt and Toni, you really need to work an auto-save mechanism into WordPress!

Yahoo! has Yahoo! Shopping.
Google has Google Product Search.
Microsoft has a hodgepodge of partners/in-house clients for MSN Shopping and now owns Jellyfish.
Ask (IAC) has Pronto.
Experian Interactive has PriceGrabber.
eBay has Shopping.com.
EW Scripps has Shopzilla.
Providence Equity Partners owns a chunk of NexTag which continues to kick ass for most merchants I talk with.
ValueClick has PriceRunner and Smarter.
Accoona even is in on the game with Buyer’s Edge.

So who is left to buy Become?

Here are three possibilities:
1. One of the other shopping engines
I don’t see this one happening as I don’t think there’s a good fit technologically or culturally, but here’s why it could. Right now the shopping engines are getting squeezed by Gooogle and this pressure will only get worse: Google is going to push Google Base/Google Product Search more heavily, Google is definitely going to kill (and in some cases already has killed) the shopping engines’ organic rankings because of AdSense heavy landing pages, and as Google Checkout badges become even more prevalent and Google Adwords’ Quality Score continues to clamp down on poor landing pages, the shopping engines will have to spend more money to compete. All bad news.

By acquiring Become, the suitor gets a cash flow positive business, good technology (some smart developers), and a couple million more page views a month. Good developers are hard to find these days and a couple million page views can be very valuable in such a strong online advertising market.

2. Transcosmos
Become is a small piece of Transcosmos’ ‘Marketing Chain Management on the Web’ strategy (see page 12 of 40) which includes investments/JVs with Optimost, Ask.jp, DoubleClick, Neilsen/Netratings, IVP (a provider of ecommerce services). Become already powers Ask.jp’s shopping search site. I’m sure there are deeper synergies to be had with the rest of the portfolio.

3. Advertising.com/AOL
AOL outsources most of AOL Shopping to PriceGrabber. AOL could knock out a middle man and potentially make more money (get the whole click fee vs. 70% of the click fee) through running its own shopping engine. Or if AOL Shopping doesn’t want it, sister company Advertising.com could pick it up and add Become as another attractive advertising solution. Advertising.com currently covers: display, search – both paid and organic, affiliate, behavioral, lead gen, promotions, and video. Why not shopping search? Picking up a couple million page views a month could be extremely attractive to the ad network. If not Advertising.com/AOL, there are a number of other ad networks out there who could find Become attractive: Specific and Tribal Fusion come to mind…I don’t think ValueClick is going to be gobbling up another shopping engine tomorrow, but they could also be a suitor in the future. The online ad networks have become very good at making online buys as efficient as possible. I like the idea of them bringing increased efficiency to the shopping engines.


preston said

Brian, you really should try blogdesk or some other blogging-client. I haven’t lost a post since I started using them (since you write posts locally and then it just connects to your site to upload it). It makes image insertion way easier, too.


michelL said

Great article. I enjoy reading your blog. I was wondering at what point Google would lower rankings of comparison engines and how? Some websites have great content with price comparison being only one of the features. Would such a site qualify for droping in Google rankings? Besides becoming a household name, what would be the alternative? By the way, we have not been able to advertise through Google AdWords for months because of the so-called low quality score – one Google rep wrote it might be linked to our business model. Interestingly enough, pure arbitrage websites without any content are advertising on the same keywords…


Brian Smith said

Thanks for the advice, Preston. Will check it out. Hope you’re well.
-b


Bripilot34 said

Bri – this a good post. The landscape keeps changing and the models keep changing. Wonder where Become would fit….. And you are right about NexTag. We got them on the sku level bidding thing a few years ago (they fought us until we & CA showed them how easy it was to implement -and how much more we could EFFECTIVELY spend.) It’s amazing how well it is doing – even outside of electronics categories. We’re happy w/ the performance.

What industry show will I see you next at? Hope all is well.
-Brian


fred333 said

Great post. I did not even know there were that many shopping networks.