INTERNET SEARCH HOT BUTTON

According to an article by Smartmoney.com Yahoo's (YHOO) $1.63 billion acquisition of online-marketing specialist Overture Services last week, put paid search into serious business. This excerpt further comments that, "since most Web surfers use search engines such as Yahoo free of charge, dot-coms are constantly looking for ways to monetize all of that traffic. That's the logic behind paid search: Advertisers pay every time a search-engine user clicks on a sponsored link. Privately held Google, the sector's king, performed 32% of the searches in May, according to comScore Networks, an Internet market-research firm, and has more than 100,000 advertisers. Ask Jeeves has a deal to put the links of Google's advertisers on its sites. The two companies split any revenue generated.

Still, with Yahoo aiming to take on Google in the paid-search arena, and with Microsoft (MSFT) expected to add search capabilities to its next version of Windows, the competition in the space is fierce. Ask Jeeves, the fifth-largest searcher with just 3% of the market, raises the question, how much longer can the free search continue? "
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