Jeeves Finds Profits From Search

USA TODAY reports on the amazing turnaround engineered by internet search firm Jeeves. For its recent third quarter, Jeeves reported $75.7 million in revenue, up 178% from the same quarter a year ago, similar to Google’s third-quarter results, which were up 105%, and Yahoo’s 157% revenue growth.
This is a case where better product, not better marketing, has paid dividends. Jeeves chose to invest $4 million in a tiny New Jersey search company, Teoma. That enabled Jeeves to acquire its own search technology and make its search results more relevant to queries. But Jeeves’ most profitable move of all: deciding to partner with rival Google. It agreed to have the online company place its text-based search ads on Jeeves. Google-placed text ads, which appear atop Jeeves’ search results, represent nearly 70% of Jeeves’ income.
Ask Jeeves CEO Steve Berkowitz, left, and Jim Lanzone, senior vice president with the web’s favorite butler.

About David Burn

Co-founder and editor of AdPulp. I wrote my first ad for a political candidate when I was 17 years old. She won her race and I felt the seductive power of advertising for the first time. I worked for seven agencies in five states before launching my own practice in 2009. Today, I am head of brand strategy and creative at Bonehook in Portland, Oregon.