One common theme in both IAC and AOL‘s quarterly report cards today: Both of them are grateful to be working Google (GOOG). Both IACI (IACI) and AOL (TWX) reported increases in paid search, and in both cases that’s because they’ve outsourced that business to Google.
Both companies would argue that Google wasn’t completely responsible for whatever results they did want to brag about. IACwhich recently re-signed a paid search deal with Google, went out of its way to note that “revenue and revenue per query at Ask.com grew strongly, even excluding the benefits of the renewed contract.” But essentially, their results mirrored Google’s which makes plenty of sense.
The problem here: Google’s helping its partners with one hand, and crushing them with the other. As we pointed out earlier this morning: “The boost here is likely to be temporary. As Google gains more and more share of the search market, we expect AOL’s [and Ask’s] query share will gradually trend toward zero.”
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