AOL Search to use the Google search engine

(May 1 2001) Another victory for Google. AOL, the largest Internet service provider in the world, will start using the Google search engine database and Google's pay per click text ads instead of Overture and Inktomi.

In Europe we may find the AOL concept a bit curious. Here is an Internet service provider that actually demands that users use their own special Web browser and that continues to build a separate community apart from the regular Web.

It works, though, and a huge number of Americans prefer the pre-packaged solution of America Online. AOL has 34 million members world wide. These subscribers also tend to use AOL's own search facilities, generating a lot of search engine page views and -- consequently -- potential ad revenue.

Like MSN, AOL has used Overture to provide pay per click search results -- i.e. text ads where advertisers pay to get their listings listed on the search result pages. Like MSN, AOL has also used the Inktomi search engine to provide standard search engine result, while the company has used the Open Directory for its search directory.

There is a lot of money involved, and when AOL announced that the Overture contract was prolonged to May 1st only, we could smell the scent of change.

And yes, today Google announced its new agreement with AOL. Google's search technology will begin powering the search areas of AOL, CompuServe, AOL.COM and Netscape this summer.

This is a huge victory for Google, and a terrible blow for Inktomi, who is left with MSN as its only serious search portal. We would guess that Fast is disappointed as well. That company would clearly like to provide search results to AOL and MSN.

That's not all. We have already told our readers about Google's new pay per click AdWords program, the first serious challenge to Overture in North America.

In a its press release Google adds that "Google's paid listings will begin rolling out on the AOL service and AOL.COM immediately; they will launch on Netscape and CompuServe in the next several weeks. Upon completion of the rollout, Google will be the exclusive provider of Sponsored Links for the search areas in these America Online properties."

Overture recently signed a three year contract with Yahoo!, providing that search portal with text ads, so Overture is definitely not in serious trouble. Loosing AOL must nevertheless be a big disappointment.

It should be noted though that Overture continue to provide search results for AOL's sites in the United Kingdom, France and Germany.

Why have AOL chosen Google? Money has probably a lot to do with it. Nevertheless, Google is clearly a better search engine that Inktomi, and happy searchers are happy customers.

Bob Pittman, COO-elect, AOL Time Warner, says that "Google is the reigning champ of online search. We are committed to providing AOL members and Web users with the very best in online tools, content and convenience, and we're very pleased to bring Google's popular platform to our users. Google's award-winning search function and targeted search listings will be a great addition to our brands, and extremely popular with our users."

What does this mean for AOL searchers? AOL has been one of the few search portals offering true Boolean searching. Whether this feature will remain when Google takes over is unclear. On the other hand, Google is an excellent search engine, and if AOL decides to use the complete Google database, AOL searchers are in for a treat.

This also means a lot to webmasters and search engine optimizers. Websites that have good rankings in Inktomi will loose a lot of visitors, while websites loved by Google will recieve a boost in traffic. The Google AdWords program will also receive a lot of new customers.

Google press release
AOL home page
Pandia on Google AdWords
Google AdWords select
Search Engine Watch on the new deal
Overture bows to Google in AOL deal (News.com)
Good news and bad news at Overture (The Street)

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