A number of the email newsletters that I subscribe to are talking about a set of new dot.coms. According to Marketwatch, the US VC investment in internet companies is the highest its been for over three years, in the last three months of 2004, venture capitalists invested 758 million USD in 107 Internet-related companies,
The area that is heading up is related to generating customers for merchants. It includes comparison shopping sites, niche search engines or next generation search engines. By picking an appropriate seaqrch engine a consumer is more likely to be offered relevant products. Leading the pack is search engine Become.comOther names include:
- Fatlens.com – scrapes sites for ticket concert prices
- Efficient Frontier – a key word management service with 100 million USD revenue, kind of similar to media buyers and planners
- Kayak.com and Sidestep.com – comparison shopping for travel
Search arbitrage – A business model based around buying a keyword on Google, paying 15 to 20 cents a keyword, and having a merchant will pay 25 cents for that traffic.