AskJeeves Launches Contextual Ad Network

AskJeeves has made the switch: it is launching an upstart advertising network powered by its own search engine, a move likely to rankle its longtime business partner, Google. ASKJ just finished its acquisition by Barry Diller’s IAC.

ASK worked with Google prior to this, for ads on its own network of sites, and Google accounted for roughly 70 percent of Ask Jeeves‘ revenue of $261 million last year. The contract runs till 2007.

Ask Jeeves plans to continue to display ads from Google’s network but will feature them below the listings generated from its own auction-based ads. Since users generally click on the links displayed higher on the page, that hierarchy could mean less revenue for Google – a dynamic that figures to cause tensions.

The Search channel is sponsored by ECNext.

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