FINDWHAT.COM ENTERS AGREEMENT WITH INGENIO TO OFFER PAY PER CALL™ ADVERTISING PLATFORM
Pay Per Call Pioneers the Way for Offline Businesses to Take Part In the Successful & Burgeoning Online Search Advertising Marketplace
FORT MYERS, FL and SAN FRANCISCO, CA – April 7, 2004 – FINDWHAT.COM (NASDAQ: FWHT), a leading developer and provider of performance–based marketing and commerce enabling services for online businesses, today announced it has entered into an agreement with Ingenio, LLC., the leading provider of search and directory monetization products and services that seamlessly bridge telephony and the Internet.
In recent years, paid listings have taken an increasing share of online advertisers' budgets, but have not been an option for businesses without a website. Through the combination of Ingenio's patented technologies with the FindWhat.com Network™, non–web–oriented businesses can now take advantage of online, performance–based marketing opportunities. In addition, Pay Per Call provides current online businesses another advertising vehicle to generate sales, with the actual connection occurring offline, over the phone, directly with the merchant.
Plans call for participating merchants' Pay Per Call ads to appear in search and directory results whenever a consumer conducts a keyword or keyword phrase query, similar to the appearance of current paid listings in the FindWhat.com Network. The online advertisements will contain special phone numbers, provisioned through the Ingenio Platform, which connect to the merchant's location. A phone call from a prospective customer, as opposed to a click, will become the true billing event. Under the proposed service, merchants will agree to a Pay Per Call fee based on an open market bidding system, with the top bidder's Pay Per Call ad appearing first, and all others listed in descending order of their bids. This pricing mechanism will allow each merchant to determine how much they wish to pay based on their goals, budget and lifetime value of their customers.
- There were approximately 22.9 million small businesses in the U.S. in 2002 (Source: Small Business Administration)
- Estimates project search revenue to grow from $1.5 to $7 billion by 2007, while local search revenue should grow to $2.5 billion by 2008 (Source: US Bancorp Piper Jaffray March 2003 and The Kelsey Group December 2003, respectively)
- Local commercial searches–those seeking merchants "near home or work"–represent over 25% of all commercial searches being performed by online buyers (The Kelsey Group and BizRate.com February 2004)
- The Ingenio/JupiterResearch findings (March 2004, 336 businesses) indicate that 48% of small businesses surveyed are very/somewhat interested in using Pay Per Call, and that 40% would be very/somewhat likely to allocate new advertising budget dollars to take advantage of this new product.
Under the terms of the agreement, FindWhat.com plans to incorporate Ingenio's technology, processes and systems to offer the Pay Per Call advertising platform and services to its advertisers, distributed through the FindWhat.com Network. Additionally, FindWhat.com and Ingenio plan to develop and co-market a unified pay–per–click and Pay Per Call solution (PPC2) to companies seeking to utilize both forms of performance–based advertising opportunities.
"FindWhat.com follows a strategic direction of aligning itself with the best–of–the–best–like Ingenio–to develop and provide high quality performance–based marketing and commerce enabling services for businesses to find prospects, get those prospects to become customers, and then keep them through retention–based marketing efforts," said Craig Pisaris-Henderson, chairman and chief executive officer of FindWhat.com. "Together with Ingenio, our services can offer millions of small–to–medium sized businesses (SMEs) the ability to connect with new customers, through phone calls and/or clicks driven by paid listings on the Internet."
"Industry leaders like FindWhat.com are recognizing the need for different types of advertising solutions. There are many segments of advertisers and merchants in the market; each with their own set of needs. Those companies who are first to deliver products and services to address those needs will benefit most," says Mark Britto, CEO and president of Ingenio. "We believe online marketing is not just about the technology, it's about rational and measurable customer acquisition...that is why merchants advertise in the first place. Our role is to enable companies to better monetize their paid listings networks while helping merchants to grow their businesses and prosper."
The companies expect the service to launch in Q3 of 2004, as they work to deploy the Ingenio platform through the FindWhat Network.
FindWhat.com creates and offers proprietary performance–based marketing and commerce enabling services that help online businesses of all sizes throughout the business cycle: finding, getting and keeping customers. Its marketing division creates online marketplaces where buyers are introduced to sellers at exactly the right moment, when they are searching for products and services on the Internet; this introduction is based on a bid–for–position, pay–per–click, keyword–targeted advertising service. FindWhat.com offers this service to directly to advertisers through the FindWhat.com Network™, and offers a private label version of this service to large companies and portals worldwide, including Lycos and Mitsui & Co., Ltd. In addition, FindWhat.com operates a merchant services division which includes Miva®, a leading online platform of software and services for small to medium–sized enterprises (SMEs). With its easy–to–use, highly customizable and integrated browser–based point and click business creation software and a vast partner network, Miva is focused on helping to create and enhance online business and marketing services for SMEs. More information on FindWhat.com is available on the Company's website at http://www.FindWhat.com.
About Ingenio, LLC.
Ingenio, LLC., headquartered in San Francisco and founded in 1999, is a leading provider of search and directory monetization products and services that seamlessly bridge telephony and the Internet. Ingenio offers a suite of solutions for the online search, directories and Yellow Pages industries, and powers real–time advice marketplaces where service providers monetize their customers. Ingenio's patented technology platform is being leveraged by top–tier organizations, including Microsoft, Match.com and the IRS. Investors include Benchmark Capital; the Carlyle Group; Draper Fisher Jurvetson; Impact Venture Partners; Integral Capital Partners; Pyramid Technology Ventures; and Vulcan Ventures, Inc.
Forward Looking Statements
This press release contains certain forward–looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Words or expressions such as "plan," "intend," "believe" or "expect" or variations of such words and similar expressions are intended to identify such forward–looking statements. Key risks are described in FindWhat.com's reports filed with the U.S. Securities and Exchange Commission, including the Form 10–K for fiscal 2003. Readers should note that these statements may be impacted by several additional factors, including risk that the development and implementation of the Pay Per Call service will be delayed or not completed when expected, the failure of Ingenio's existing infrastructure to adequately support the Pay Per Call service, the failure of FindWhat.com to successfully create and manage the Pay Per Call service, FindWhat.com's failure to leverage off its existing client base and distribution partners for the Pay Per Call service, the failure of the Pay Per Call market to develop as envisioned and economic changes and changes in the Internet industry generally. Accordingly, FindWhat.com's actual performance and results may vary from those stated herein, and FindWhat.com undertakes no obligation to update the information contained herein.
# # #
Ian Gertler – Symplegades Inc.
Ingenio PR Contact
Valerie Garing Combs
®Registered trademarks of FindWhat.com
™ Trademark of FindWhat.com
PAY PER CALL™ trademark of Ingenio, LLC.