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Tuesday, May 06, 2003

Look out, LookSmart

Things had been looking up for LookSmart in the past year, as reluctant Net marketers began to slowly buck up for the web directory-turned-pay-per-click provider's new direction. It is, after all, one of the few ways to appear highly in paid listings for MSN, one of the top 3 search properties, so it's important to many companies to be in LookSmart.

However, due to cutthroat competition in the PPC space, LookSmart's profits are way below expectations. I would expect the squeeze to continue to be on LookSmart, as the only real feather in its cap is the MSN relationship. If that falls, so falls LookSmart. Look out below!

Posted by Cory Kleinschmidt
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