Adware Partnership
In April 2003, Overture announced a three-year partnership with Gator Corporation, (now Claria Corporation) an adware company. Under the partnership, Gator's software monitored a web-user's activity on web sites and search engines (even sites such as Google that are not affiliated with Overture) and grabbed search keywords. These keywords were submitted to the Overture search engine. As a result, advertisers who paid for listings in Overture found their products advertised through Gator's Search Scout software, even if they wanted nothing to do with Gator. Overture faced a great deal of criticism for entering into this partnership.
When Yahoo acquired Overture, the Claria software impaired the operation of Yahoo's services. For example, when a user with a Claria application installed used Yahoo Search, they received a standard set of Yahoo results with sponsored listings at the top supplied by Overture. The user would then receive a full-screen pop-under window from Search Scout. Since Search Scout uses Overture's paid listings as well, Claria's window has exactly the same listings as the Yahoo search results.
Subsequently, Yahoo! came out with the Yahoo! Toolbar, which allows users to remove adware and spyware from their system. The toolbar affected the operation of Claria's software and may have put stress on the relationship between the two companies. Claria's website does not list Yahoo! as a partner and a March 2006 press release states that they are exiting the adware business.
Read more about this topic: Yahoo! Search Marketing
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