GoTo.com Surpasses 1000 Paid Advertisers Appearing in Search Results

Business Wire, June 23, 1998

PASADENA, Calif.--(BUSINESS WIRE)--June 23, 1998--

E-Commerce Advertisers Quickly Adopt GoTo.Com Cost-Per-Click Search Listings Advertising Model

GoTo.com, the new simpler search engine that allows Web sites to purchase placement within search results using a competitive open-market bidding process, Tuesday announced it has signed up more than 1,000 paid advertisers.

Advertisers are spending anywhere from one cent to one dollar per click-through for highly targeted search terms as part of GoTo's pay-for-performance pricing model.

GoTo.com is aggressively partnering with the top e-commerce sites on the Web to guarantee that the listings returned to a consumer during a search are the highest quality sites.

Hundreds of top-tier e-commerce sites are now participating in the GoTo advertising model. Barnesandnoble.com, OnSale, Travelocity, Egghead, Shopping.com, eToys, Z-Auction, Multiple Zones International, NECX, Virtual Vineyards and 800-Florals have all signed up for context-sensitive search result advertising listings for multiple search terms on GoTo.com.

"While everyone else is focused on selling banner advertisements which are really just billboards for the Internet, our search listings advertising product allows us to charge on pay-per-click basis, sort of like paying just for the customers that walk into your store.

Moreover, we enable advertisers to better represent the full depth and breadth of their Web sites by linking the best and most relevant Web pages to specific search terms," said Jeffrey Brewer, chief executive officer of GoTo.com. "Our advertisers get significantly higher targeting of customers, at lower cost, and with more precision and accountability than with any other marketing method."

GoTo.com revolutionizes the way consumers find Web sites and marketers reach consumers. The GoTo search engine empowers the marketplace to determine the ranking and relevance of high-quality e-commerce and business sites by employing a free market auction process for each search term.

In a model similar to a yellow pages directory, Web sites are charged for more prominent placement and greater exposure in the search results listings. The GoTo model greatly expands the supply of targeted and cost-effective marketing opportunities for e-commerce sites, thereby enabling both large and small niche sites alike to competitively bid for placement based on the level of their commitment to getting people to come to their site.

GoTo further empowers merchants by not restricting the market through exclusive tenancy deals with e-commerce sites in key categories.

"Our advertisers can pay for placement, but they cannot buy exclusivity. We do not do exclusive advertising deals like our competitors," said Jeffrey Brewer, CEO of GoTo. "Therefore, we are not limited in our ability to ensure that all relevant and high-quality sites whether large or small businesses are included in any search."

In order to ensure the highest quality search experience for users, GoTo.com requires all advertisers to meet rigorous quality and relevance standards in order to be included in search results. For example, an advertiser's listing will often link to a specific, highly relevant page within a Web site, rather than just to a more generic Home Page.

Moreover, duplicate domains for any given search term are algorithmically eliminated, thereby providing users with a rich and varied selection of results to choose from.

About GoTo.com

GoTo.com is another idealab! company. GoTo.com was founded in late 1997. Jeffrey Brewer, co-founder of CitySearch, was named CEO in February 1998. A proof-of-concept version of the service was introduced at the TED8 conference on Feb. 21, 1998.

GoTo.com recently closed its first round of financing led by Draper Fisher Jurvetson, and the company officially launched its site and a major consumer marketing campaign on June 1, 1998. GoTo.com is currently generating impressions at the run rate of 25 million per month. The company has 25 employees and is located in Pasadena. GoTo can be found at www.goto.com.

About Draper Fisher Jurvetson

Draper Fisher Jurvetson is a leader in start-up venture capital, having invested in more than 150 high-tech companies. In the majority of cases, they are the lead investor for a company's first round of financing.

The firm focuses on information technology businesses with enormous market potential, and helps entrepreneurs achieve their maximum potential through team building, partnerships, advice and support, as well as investments. By pursuing a people-focused approach to venture capital investing, Draper Fisher Jurvetson continues to fund entrepreneurs with the energy, vision, experience, and desire to build great companies.

DFJ'S 40 Internet investments include HotMail, Four11, Kana, Release Software, Tumbleweed Software. Draper Fisher Jurvetson is located in Redwood City, Calif., and can be found on the Web at www.drapervc.com.

About idealab!

idealab! is the nation's largest Internet incubator, with more than 20 businesses in various stages of development, which employ more than 1,000 people worldwide. Other idealab! companies include CitySearch, the industry-leading local information service; eToys.com, the leading online toy retailer; PeopleLink, Tickets.com and IntraNetics. idealab! is based in Pasadena.