Scriptor is correct in his description of how such services work.
Claria, located in Redwood City, California, is the largest company in
this industry, with sales of $90 million and profits of $35 million in
2003. Their most well-known adware product is called Gator. Claria's
largest competitor is WhenU.com of New York. Another adware company
is 180solutions, located in Bellevue, Washington. "As it now stands,
Claria's Gator program is on 43 million machines, WhenU is on 25
million PCs, and 180solutions reaches 30 million, according to the
companies." (Elgin reference)
This type of advertising campaign is very popular because of its
effectiveness. "According to advertising agencies, for every 97
people who zap such an ad, three click on it. That's a skyhigh hit
rate for the $7.2 billion Internet ad industry." (Elgin reference)
Obviously, companies who are experiencing pop-ups from competitors on
their web sites are unhappy. Hertz, Wells Fargo, and L.L. Bean are
suing adware vendors, as well as the advertisers in some cases. The
Washington Post has also sued Claria. U-Haul has sued WhenU, although
the judge ruled against U-Haul. In addition, a new law in Utah has
outlawed spyware and most types of adware, and Congress is considering
anti-spyware legislation as well.
Despite the public backlash against adware, many well-known companies
advertise using this method because of its effectiveness. Sprint,
Motorola, ING Direct Securities, Zacks Internet Group, Travelocity,
British Airways, J.P. Morgan Chase, Verizon, Eddie Bauer, and eBay all
advertise using adware products from Claria, WhenU, and/or
180solutions.
Sources: "Guess What-You Asked For Those Pop-Up Ads" by Ben Elgin,
BusinessWeek (June 28, 2004) pages 94-96
http://www.businessweek.com/@@0PsLgWYQuHNhDg0A/premium/content/04_26/b3889095_mz063.htm?se=1
(Graphic associated with story)
http://www.businessweek.com/@@0PsLgWYQuHNhDg0A/premium/content/04_26/b3889097_mz063.htm?se=1
"Claria: The Napster of Pop-Up Advertising?" By Timothy J. Mullaney,
BusinessWeek (June 28, 2004) page 96
http://www.businessweek.com/@@0PsLgWYQuHNhDg0A/premium/content/04_26/b3889102_mz063.htm?se=1
Sincerely,
Wonko |